1.1                          A bill for an act 
  1.2             relating to taxation; allowing a tax refund or credit 
  1.3             on unsold pull-tabs or tipboard tickets; appropriating 
  1.4             money; amending Minnesota Statutes 1994, section 
  1.5             297E.02, subdivisions 4 and 10. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 297E.02, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed 
  1.10  on the sale of each deal of pull-tabs and tipboards sold by a 
  1.11  distributor.  The rate of the tax is two percent of the ideal 
  1.12  gross of the pull-tab or tipboard deal.  The sales tax imposed 
  1.13  by chapter 297A on the sale of the pull-tabs and tipboards by 
  1.14  the distributor is imposed on the retail sales price less the 
  1.15  tax imposed by this subdivision.  The retail sale of pull-tabs 
  1.16  or tipboards by the organization is exempt from taxes imposed by 
  1.17  chapter 297A and is exempt from all local taxes and license fees 
  1.18  except a fee authorized under section 349.16, subdivision 8.  
  1.19     (b) The liability for the tax imposed by this section is 
  1.20  incurred when the pull-tabs and tipboards are delivered by the 
  1.21  distributor to the customer or to a common or contract carrier 
  1.22  for delivery to the customer, or when received by the customer's 
  1.23  authorized representative at the distributor's place of 
  1.24  business, regardless of the distributor's method of accounting 
  1.25  or the terms of the sale.  
  2.1      The tax imposed by this subdivision is imposed on all sales 
  2.2   of pull-tabs and tipboards, except the following:  
  2.3      (1) sales to the governing body of an Indian tribal 
  2.4   organization for use on an Indian reservation; 
  2.5      (2) sales to distributors licensed under the laws of 
  2.6   another state or of a province of Canada, as long as all 
  2.7   statutory and regulatory requirements are met in the other state 
  2.8   or province; 
  2.9      (3) sales of promotional tickets as defined in section 
  2.10  349.12; and 
  2.11     (4) pull-tabs and tipboards sold to an organization that 
  2.12  sells pull-tabs and tipboards under the exemption from licensing 
  2.13  in section 349.166, subdivision 2.  A distributor shall require 
  2.14  an organization conducting exempt gambling to show proof of its 
  2.15  exempt status before making a tax-exempt sale of pull-tabs or 
  2.16  tipboards to the organization.  A distributor shall identify, on 
  2.17  all reports submitted to the commissioner, all sales of 
  2.18  pull-tabs and tipboards that are exempt from tax under this 
  2.19  subdivision.  
  2.20     (c) A distributor having a liability of $120,000 or more 
  2.21  during a fiscal year ending June 30 must remit all liabilities 
  2.22  in the subsequent calendar year by a funds transfer as defined 
  2.23  in section 336.4A-104, paragraph (a).  The funds transfer 
  2.24  payment date, as defined in section 336.4A-401, must be on or 
  2.25  before the date the tax is due.  If the date the tax is due is 
  2.26  not a funds transfer business day, as defined in section 
  2.27  336.4A-105, paragraph (a), clause (4), the payment date must be 
  2.28  on or before the funds transfer business day next following the 
  2.29  date the tax is due. 
  2.30     (d) Any customer who purchases deals of pull-tabs or 
  2.31  tipboards from a distributor may file an annual claim for a 
  2.32  refund or credit of taxes paid pursuant to this subdivision for 
  2.33  unsold pull-tab and tipboard tickets.  The claim must be filed 
  2.34  with the commissioner on a form prescribed by the commissioner 
  2.35  by March 20 of the year following the calendar year for which 
  2.36  the refund is claimed.  The refund must be filed as part of the 
  3.1   customer's February monthly return.  The refund or credit is 
  3.2   equal to two percent of the face value of the unsold pull-tab or 
  3.3   tipboard tickets.  The refund claimed will be applied as a 
  3.4   credit against tax owing under this chapter on the February 
  3.5   monthly return.  If the refund claimed exceeds the tax owing on 
  3.6   the February monthly return, that amount will be refunded.  The 
  3.7   amount refunded will bear interest pursuant to section 270.76 
  3.8   from 90 days after the claim is filed.  
  3.9      Sec. 2.  Minnesota Statutes 1994, section 297E.02, 
  3.10  subdivision 10, is amended to read: 
  3.11     Subd. 10.  [REFUNDS; APPROPRIATION.] A person who has, 
  3.12  under this chapter, paid to the commissioner an amount of tax 
  3.13  for a period in excess of the amount legally due for that 
  3.14  period, may file with the commissioner a claim for a refund of 
  3.15  the excess.  The amount necessary to pay the refunds under this 
  3.16  subdivision and subdivision 4, paragraph (d), is appropriated 
  3.17  from the general fund to the commissioner. 
  3.18     Sec. 3.  [EFFECTIVE DATE.] 
  3.19     Section 1 is effective for pull-tab and tipboard deals 
  3.20  reported as being played on or after January 1, 1996.