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SF 2980

as introduced - 86th Legislature (2009 - 2010) Posted on 03/02/2010 01:40pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to the financing of state and local government; taxation; education
finance; eliminating the sales tax exemption on clothing; adjusting the school
payment shift; amending Minnesota Statutes 2008, sections 127A.45, subdivision
2; 297A.62, subdivision 1, by adding a subdivision; 297A.65; 473.757,
subdivision 10; Minnesota Statutes 2009 Supplement, section 297A.992,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter
297A; repealing Minnesota Statutes 2008, sections 297A.61, subdivision 46;
297A.67, subdivisions 8, 27.

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

Section 1.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to
read:


Subd. 2.

Definitions.

(a) The term "other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) The term "cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) The term "payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin 90deleted text end new text begin 73 in fiscal year 2010; 73
in fiscal year 2011; 74.7 in fiscal year 2012; 76.4 in fiscal year 2013; 78.1 in fiscal year
2014; 79.8 in fiscal year 2015; 81.5 in fiscal year 2016; 83.2 in fiscal year 2017; 84.9 in
fiscal year 2018; 86.6 in fiscal year 2019; 88.3 in fiscal year 2020; and 90 in fiscal years
2021 and later
new text end .

Sec. 2.

Minnesota Statutes 2008, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Generallydeleted text end new text begin Ratenew text end .

Except as otherwise provided in subdivision 3 or in
this chapter, a sales tax of deleted text begin 6.5deleted text end new text begin 6.25new text end percent is imposed on the gross receipts from retail
sales as defined in section 297A.61, subdivision 4, made in this state or to a destination
in this state by a person who is required to have or voluntarily obtains a permit under
section 297A.83, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after June
30, 2011.
new text end

Sec. 3.

Minnesota Statutes 2008, section 297A.62, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Rate of adjustment. new text end

new text begin Pursuant to the requirements of the Minnesota
Constitution, article XI, section 15, the proportion of the sales and use tax rate in
subdivision 1, dedicated for the purposes defined in that section, must be proportionally
adjusted by law, as calculated by the commissioner, to within one-thousandth of one
percent in order to provide as close to the same amount of revenue as practicable before
the repeal of section 297A.67, subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after June
30, 2010.
new text end

Sec. 4.

new text begin [297A.625] RATE ADJUSTMENTS AND TRACKING.
new text end

new text begin (a) The commissioner must track the change in revenue resulting from the repeal
of section 297A.67, subdivision 8. The commissioner may require retailers to separately
state on returns under section 289A.18, subdivision 4, the amount of tax collected as a
result of the repeal of section 297A.67, subdivision 8. The commissioner must report to
the governor and the chairs and ranking minority members of the legislative committees
and divisions of the senate and the house of representatives having jurisdiction over taxes
by January 15 of every year on the amount of tax collected as a result of the repeal of
section 297A.67, subdivision 8, for the fiscal year most recently ended.
new text end

new text begin (b) Beginning in fiscal year 2012, for each fiscal year, $120,000,000 of the revenue
attributable to the repeal of section 297A.68, subdivision 8, must be dedicated to the
adjustment of the school payment shift under section 127A.45, subdivision 2. When the
percentage under section 127A.45, subdivision 2, is at least 90 percent, $120,000,000
per fiscal year of the revenue attributable to the repeal of section 297A.67, subdivision
8, must be dedicated to reducing the rate in section 297A.62, subdivision 1. The rate in
section 297A.62, subdivision 1, must be proportionately reduced by law, as calculated by
the commissioner, to within one-thousandth of one percent. The amount dedicated under
this section is not subject to the calculation of a budget reserve under section 16A.152,
subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2008, section 297A.65, is amended to read:


297A.65 LOTTERY TICKETS; IN LIEU TAX.

Sales of state lottery tickets are exempt from the tax imposed under section
297A.62. The State Lottery must on or before the 20th day of each month transmit to
the commissioner of revenue an amount equal to the gross receipts from the sale of
lottery tickets for the previous month multiplied by deleted text begin the tax rate under section 297A.62,
subdivision 1
deleted text end new text begin a rate of 6.5 percentnew text end . The resulting payment is in lieu of the sales tax that
otherwise would be imposed by this chapter. The commissioner shall deposit the money
transmitted as provided by section 297A.94 and the money must be treated as other
proceeds of the sales tax. For purposes of this section, "gross receipts" means the proceeds
of the sale of tickets before deduction of a commission or other compensation paid to
the vendor or retailer for selling tickets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases of lottery
tickets after June 30, 2010.
new text end

Sec. 6.

Minnesota Statutes 2009 Supplement, section 297A.992, subdivision 2, is
amended to read:


Subd. 2.

Authorization; rates.

(a) Notwithstanding section 297A.99, subdivisions
1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a
joint powers agreement as specified in this section shall impose by resolution (1) a
transportation sales and use tax at a rate of deleted text begin one-quarter of onedeleted text end new text begin 0.24 new text end percent on retail sales
and uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as
defined in section 297B.01, subdivision 11, purchased or acquired from any person
engaged in the business of selling motor vehicles at retail, occurring within the jurisdiction
of the taxing authority. The taxes authorized are to fund transportation improvements as
specified in this section, including debt service on obligations issued to finance such
improvements pursuant to subdivision 7.

(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after June
30, 2010.
new text end

Sec. 7.

Minnesota Statutes 2008, section 473.757, subdivision 10, is amended to read:


Subd. 10.

Sales and use tax.

(a) Notwithstanding section 477A.016, or other law,
the governing body of the county may by ordinance, impose a sales and use tax at the rate
of deleted text begin 0.15deleted text end new text begin 0.144 new text end percent for the purposes listed in this section. The taxes authorized under
this section and the manner in which they are imposed are exempt from the rules of section
297A.99, subdivisions 2 and 3. The provisions of section 297A.99, except for subdivisions
2 and 3, apply to the imposition, administration, collection, and enforcement of this tax.

(b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 297A.61, subdivision 46; and 297A.67,
subdivisions 8 and 27,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after June
30, 2010.
new text end