SF 3375

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; sales; providing nexus rules for 
  1.3             affiliated companies; amending Minnesota Statutes 
  1.4             2000, section 297A.66, by adding a subdivision; 
  1.5             Minnesota Statutes 2001 Supplement, section 297A.66, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   297A.66, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [DEFINITIONS.] (a) "Retailer maintaining a 
  1.11  place of business in this state," or a similar term, means a 
  1.12  retailer: 
  1.13     (1) having or maintaining within this state, directly or by 
  1.14  a subsidiary or an affiliate, an office, place of distribution, 
  1.15  sales or sample room or place, warehouse, or other place of 
  1.16  business; or 
  1.17     (2) having a representative, agent, salesperson, canvasser, 
  1.18  or solicitor operating in this state under the authority of the 
  1.19  retailer or its subsidiary, for any purpose, including the 
  1.20  repairing, selling, delivering, installing, or soliciting of 
  1.21  orders for the retailer's goods or services, or the leasing of 
  1.22  tangible personal property located in this state, whether the 
  1.23  place of business or agent, representative, salesperson, 
  1.24  canvasser, or solicitor is located in the state permanently or 
  1.25  temporarily, or whether or not the retailer or subsidiary is 
  1.26  authorized to do business in this state. 
  2.1      (b) "Destination of a sale" means the location to which the 
  2.2   retailer makes delivery of the property sold, or causes the 
  2.3   property to be delivered, to the purchaser of the property, or 
  2.4   to the agent or designee of the purchaser.  The delivery may be 
  2.5   made by any means, including the United States Postal Service or 
  2.6   a for-hire carrier. 
  2.7      [EFFECTIVE DATE.] This section is effective for sales made 
  2.8   after June 30, 2002. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 297A.66, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 4.  [AFFILIATED ENTITIES.] (a) An entity is an 
  2.12  "affiliate" of the retailer for purposes of subdivision 1, 
  2.13  paragraph (a), if: 
  2.14     (1)(i) the entity sells the same or a substantially similar 
  2.15  line of products under the same or a substantially similar 
  2.16  business name as the retailer; or 
  2.17     (ii) the entity uses its facilities or employees in this 
  2.18  state to advertise or promote sales by the retailer to 
  2.19  purchasers in this state or to provide services to the 
  2.20  retailer's purchasers in this state, such as accepting returns 
  2.21  of purchases for the retailer or providing other services; and 
  2.22     (2) the retailer and the entity are related parties. 
  2.23     (b) Two entities are related parties under this section if 
  2.24  one of the entities meets at least one of the following tests 
  2.25  with respect to the other entity: 
  2.26     (1) one or both entities is a corporation, and one entity 
  2.27  and any party related to that entity in a manner that would 
  2.28  require an attribution of stock from the corporation to the 
  2.29  party or from the party to the corporation under the attribution 
  2.30  rules of section 318 of the Internal Revenue Code owns directly, 
  2.31  indirectly, beneficially, or constructively at least 50 percent 
  2.32  of the value of the corporation's outstanding stock; 
  2.33     (2) one or both entities is a partnership, estate, or trust 
  2.34  and any partner or beneficiary, and the partnership, estate, or 
  2.35  trust and its partners or beneficiaries own directly, 
  2.36  indirectly, beneficially, or constructively, in the aggregate, 
  3.1   at least 50 percent of the profits, capital, stock, or value of 
  3.2   the other entity or both entities; or 
  3.3      (3) an individual stockholder and the members of the 
  3.4   stockholder's family (as defined in section 318 of the Internal 
  3.5   Revenue Code) owns directly, indirectly, beneficially, or 
  3.6   constructively, in the aggregate, at least 50 percent of the 
  3.7   value of both entities' outstanding stock. 
  3.8      (c) An entity is an affiliate under the provisions of this 
  3.9   subdivision if the requirements of paragraphs (a) and (b) are 
  3.10  met during any part of the 12-month period ending on the first 
  3.11  day of the month before the month in which the sale was made. 
  3.12     [EFFECTIVE DATE.] This section is effective for sales made 
  3.13  after June 30, 2002.