SF 2925

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/16/2023 08:35am

A bill for an act
relating to taxation; income and corporate franchise; sales and use; providing a
credit for certain payments to entertainers and a sales and use tax exemption for
certain ticket sales; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin SHUTTERED VENUE EXPENSES CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following definitions apply:
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new text begin (1) "eligible taxpayer" means a taxpayer that is a qualifying venue;
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new text begin (2) "qualifying venue" means a live venue operator or promoter, theatrical producer, or
live performing arts organization operator as defined under United States Code, title 15,
section 9009a(a)(3), that:
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new text begin (i) received a grant or supplemental grant under United States Code, title 15, section
9009a; and
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new text begin (ii) paid performers for live performances during the qualifying period;
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new text begin (3) "qualifying period" means the period beginning March 1, 2020, and ending before
July 1, 2022;
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new text begin (4) "eligible expenses" means expenses paid by a qualifying taxpayer during the
qualifying period for a live performance in Minnesota for which:
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new text begin (i) the qualifying venue was required to issue a return to a performer under section
6041(a) of the Internal Revenue Code; and
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new text begin (ii) the return was mailed or otherwise transmitted to a performer whose address is in
Minnesota; and
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new text begin (5) "Internal Revenue Code" has the meaning given in Minnesota Statutes, section
290.01, subdivision 31.
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new text begin Subd. 2. new text end

new text begin Credit allowed; refundable. new text end

new text begin (a) An eligible taxpayer is allowed a credit against
the tax imposed by Minnesota Statutes, chapter 290, equal to the eligible expenses paid in
a taxable year.
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new text begin (b) If the amount of credit that an eligible taxpayer is allowed under this section exceeds
the eligible taxpayer's tax liability under this chapter, the commissioner of revenue shall
refund the excess to the eligible taxpayer.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, limited
liability company taxed as a partnership, S corporation, or multiple owners of property are
passed through to the partners, members, shareholders, or owners, respectively, pro rata to
each partner, member, shareholder, or owner based on their share of the entity's assets or
as specially allocated in their organizational documents or any other executed agreement,
as of the last day of the taxable year.
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new text begin Subd. 4. new text end

new text begin Application; manner of claiming. new text end

new text begin The commissioner of revenue shall prescribe
the manner in which the credit may be claimed.
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new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner of revenue from the general fund.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2023.
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Sec. 2. new text begin TEMPORARY SALES AND ENTERTAINMENT TAXES REFUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following definitions apply:
new text end

new text begin (1) "qualifying venue" means a live venue operator or promoter, theatrical producer, or
live performing arts organization operator as defined under United States Code, title 15,
section 9009a(a)(3), that:
new text end

new text begin (i) received a grant or supplemental grant under United States Code, title 15, section
9009a; and
new text end

new text begin (ii) paid performers for a live performance during the qualifying period; and
new text end

new text begin (2) "qualifying period" means the period beginning March 1, 2020, and ending before
July 1, 2022.
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new text begin Subd. 2. new text end

new text begin Exemption. new text end

new text begin The sale and purchase of the privilege of admission as defined
under Minnesota Statutes, section 297A.61, subdivision 3, paragraph (g), clause (1), to a
qualifying venue during the qualifying period is exempt.
new text end

new text begin Subd. 3. new text end

new text begin Application; refund; appropriation. new text end

new text begin By October 1, 2023, a qualifying venue
must apply for a refund of sales taxes collected and remitted pursuant to Minnesota Statutes,
section 297A.77, during the qualifying period. The provisions of Minnesota Statutes, section
289A.50, subdivisions 2 and 2a, do not apply to refunds issued to vendors under this section.
An amount sufficient to make refunds under this section is appropriated to the commissioner
of revenue from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after February 28, 2020, and before July 1, 2022.
new text end