SF 2905

as introduced - 90th Legislature (2017 - 2018) Posted on 03/06/2018 08:36am

A bill for an act
relating to taxation; sales and use; modifying collection and remittance requirements
for certain retailers and marketplace providers; amending Minnesota Statutes 2017
Supplement, section 297A.66, subdivisions 2, 4b.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 297A.66, subdivision 2, is
amended to read:

Subd. 2.

Retailer maintaining place of business in this state.

(a) Except as provided
in paragraph (b), a retailer maintaining a place of business in this state who makes retail
sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and
remit them to the commissioner under section 297A.77.

(b) A retailer with total taxable retail sales to customers in this state new text begin (1) through a single
marketplace provider, and (2) new text end of less than $10,000 in the 12-month period ending on the
last day of the most recently completed calendar quarter is not required to collect and remit
sales tax if it is determined to be a retailer maintaining a place of business in the state solely
because it made sales through one or more marketplace providers. The provisions of this
paragraph do not apply to a retailer that is or was registered to collect sales and use tax in
this state.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 297A.66, subdivision 4b, is amended
to read:

Subd. 4b.

Collection and remittance requirements for marketplace providers and
marketplace retailers.

(a) A marketplace provider shall collect sales and use taxes and
remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
and is subject to audit on the retail sales it facilitates unless deleted text begin either deleted text end :

(1) the retailer provides a copy of the retailer's registration to collect sales and use tax
in this state to the marketplace provider before the marketplace provider facilitates a sale;
deleted text begin or
deleted text end

(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
that the retailer is registered to collect sales and use taxes in this state new text begin ; or
new text end

new text begin (3) the marketplace provider provides a copy of an agreement with a retailer that assigns
fiscal liability for payment of taxes due under this chapter new text end .

(b) Nothing in this subdivision shall be construed to interfere with the ability of a
marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
requirements of this chapter new text begin , including the assignment of fiscal liability for payment of taxes
due under this chapter new text end .

(c) A marketplace provider is not liable under this subdivision for failure to file and
collect and remit sales and use taxes if the marketplace provider demonstrates that the error
was due to incorrect or insufficient information given to the marketplace provider by the
retailer. This paragraph does not apply if the marketplace provider and the marketplace
retailer are related as defined in subdivision 4, paragraph (b).

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin (a) The provisions of sections 1 and 2 are effective at the earlier of:
new text end

new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
presence in the state to collect and remit sales tax; or
new text end

new text begin (2) July 1, 2019.
new text end

new text begin (b) Notwithstanding paragraph (a) or the provisions of Minnesota Statutes, section
297A.66, subdivisions 1, 2, 4, and 4b, or sections 1 and 2, if a federal law is enacted
authorizing a state to impose a requirement to collect and remit sales tax on retailers without
a physical presence in the state, the commissioner must enforce the provisions of sections
1 and 2 to the extent allowed under federal law.
new text end