1.1 	A bill for an act
1.2 	relating to taxation; imposing an excise tax on paint;amending Minnesota 
1.3 	Statutes 2006, sections 270C.56, subdivision 1; 289A.01; 289A.02, subdivision 
1.4 	5; 289A.12, by adding a subdivision; 289A.18, by adding a subdivision; 
1.5 	289A.19, by adding a subdivision; 289A.20, by adding a subdivision; 289A.56, 
1.6 	subdivision 3; proposing coding for new law as Minnesota Statutes, chapter 297J.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2006, section 270C.56, subdivision 1, is amended to read:
1.9 		Subdivision 1.Liability imposed. A person who, either singly or jointly with 
1.10 	others, has the control of, supervision of, or responsibility for filing returns or reports, 
1.11 	paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 
1.12 	person who is liable under any other law, is liable for the payment of taxes, penalties, and 
1.13 	interest arising under chapters 295, 296A, 297A, 297F, ~~and~~ 297G, and 297J, or sections 
1.14 	290.92 and 297E.02.

1.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
1.16 	and applies to paint shipped after September 30, 2007.

1.17 	Sec. 2. Minnesota Statutes 2006, section 289A.01, is amended to read:
1.18 	289A.01 APPLICATION OF CHAPTER.
1.19 	This chapter applies to laws administered by the commissioner under chapters 290, 
1.20 	290A, 291, ~~and~~ 297A, and 297J, and sections 298.01 and 298.015. 

1.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
1.22 	and applies to paint shipped after September 30, 2007.

2.1 	Sec. 3. Minnesota Statutes 2006, section 289A.02, subdivision 5, is amended to read:
2.2 		Subd. 5.Other words. Unless specifically defined in this chapter, or unless the 
2.3 	context clearly indicates otherwise, the words used in this chapter have the same meanings 
2.4 	as they are defined in chapters 290, 290A, 291, ~~and~~ 297A, and 297J.

2.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.6 	and applies to paint shipped after September 30, 2007.

2.7 	Sec. 4. Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision 
2.8 	to read:
2.9 		Subd. 4a.Paint tax returns. (a) For taxes imposed under chapter 297J, a return 
2.10 	for the preceding taxable period must be filed with the commissioner in the form the 
2.11 	commissioner prescribes.  The return must be verified by a written declaration that it is 
2.12 	made under the criminal penalties for making a false return, and must contain a confession 
2.13 	of judgment for the amount of the tax shown due, to the extent not timely paid.
2.14 	(b) A paint wholesaler and any person who receives paint from someone other than a 
2.15 	wholesaler or retailer must file a return.  The return must be signed by the person filing it 
2.16 	or by the person's agent duly authorized in writing.

2.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.18 	and applies to paint shipped after September 30, 2007.

2.19 	Sec. 5. Minnesota Statutes 2006, section 289A.18, is amended by adding a subdivision 
2.20 	to read:
2.21 		Subd. 6.Paint tax returns. A return under section 289A.12, subdivision 4a, is due 
2.22 	on or before the 20th day of the month following the month in which the tax liability is 
2.23 	incurred.

2.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.25 	and applies to paint shipped after September 30, 2007.

2.26 	Sec. 6. Minnesota Statutes 2006, section 289A.19, is amended by adding a subdivision 
2.27 	to read:
2.28 		Subd. 7.Paint tax returns. The commissioner may extend the time for filing a 
2.29 	paint tax return by up to 60 days for good cause.

2.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.31 	and applies to paint shipped after September 30, 2007.

3.1 	Sec. 7. Minnesota Statutes 2006, section 289A.20, is amended by adding a subdivision 
3.2 	to read:
3.3 		Subd. 6.Paint tax. Paint taxes are due on or before the 20th day of the month 
3.4 	following the month in which the tax liability is to be incurred.

3.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.6 	and applies to paint shipped after September 30, 2007.

3.7 	Sec. 8. Minnesota Statutes 2006, section 289A.56, subdivision 3, is amended to read:
3.8 		Subd. 3.Withholding tax, entertainer withholding tax, withholding 
3.9 	from payments to out-of-state contractors, estate tax, paint tax, and sales tax 
3.10 	overpayments. When a refund is due for overpayments of withholding tax, entertainer 
3.11 	withholding tax, paint tax, or withholding from payments to out-of-state contractors, 
3.12 	interest is computed from the date of payment to the date the refund is paid or credited. 
3.13 	For purposes of this subdivision, the date of payment is the later of the date the tax was 
3.14 	finally due or was paid.
3.15 	For the purposes of computing interest on estate tax refunds, interest is paid from 
3.16 	the later of the date of overpayment, the date the estate tax return is due, or the date the 
3.17 	original estate tax return is filed to the date the refund is paid.
3.18 	For purposes of computing interest on sales and use tax refunds, interest is paid from 
3.19 	the date of payment to the date the refund is paid or credited, if the refund claim includes a 
3.20 	detailed schedule reflecting the tax periods covered in the claim. If the refund claim 
3.21 	submitted does not include a detailed schedule reflecting the tax periods covered in the 
3.22 	claim, interest is computed from the date the claim was filed.

3.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.24 	and applies to paint shipped after September 30, 2007.

3.25 	Sec. 9. [297J.01] DEFINITIONS.
3.26 		Subdivision 1.Scope. For purposes of this chapter, the following terms have the 
3.27 	meanings given, unless the context clearly requires otherwise.
3.28 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
3.29 		Subd. 3.Paint. (a) "Paint" means a fluid, semifluid, or other material intended to be 
3.30 	used as a coating, which changes to a solid film when applied to a metal, wood, stone, 
3.31 	paper, leather, cloth, plastic, or other surface.  Paint includes fluids with a suspension of 
3.32 	finely divided coloring matter, stains, and varnishes.
3.33 	(b) Paint does not include:
4.1 	(1) printing ink or materials that become part of the substrate, such as the pigment in 
4.2 	a plastic article; or 
4.3 	(2) materials that are bonded to the substrate, such as by electroplating or ceramic 
4.4 	glazing.
4.5 		Subd. 4.Person. "Person" means an individual or any entity.
4.6 		Subd. 5.Retail outlet. "Retail outlet" means a location in this state at which 
4.7 	consumers may purchase paint.
4.8 		Subd. 6.Retailer. "Retailer" means a person who sells paint at a retail outlet.
4.9 		Subd. 7.Wholesaler. "Wholesaler" means any person who sells or otherwise 
4.10 	furnishes for resale purposes, from a stock maintained inside or outside of the state, paint 
4.11 	to one or more retailers or consumers within the state.  Wholesaler includes a manufacturer 
4.12 	of paint who sells paint directly to retailers or consumers.

4.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.14 	and applies to paint shipped after September 30, 2007.

4.15 	Sec. 10. [297J.02] PAINT TAX.
4.16 		Subdivision 1.Imposition. A tax is imposed on the sale or transfer of paint by 
4.17 	a wholesaler equal to five cents per United States gallon.  The tax is payable by the 
4.18 	wholesaler in the manner and at the times provided in chapter 289A.  Liability for the tax is 
4.19 	incurred when the paint is shipped or delivered to a retail outlet, a retailer for sale at a retail 
4.20 	outlet, or another person for resale or use in this state or when the paint is received by the 
4.21 	customer's authorized representative at the wholesaler's place of business in this state.
4.22 		Subd. 2.Use tax. A person that receives paint for resale or use in Minnesota, 
4.23 	other than from a wholesaler that paid the tax under subdivision 1 as evidenced by a 
4.24 	paint tax identification number appearing on the invoice or from a retailer, is subject to 
4.25 	a tax equal to five cents per United States gallon.  The tax is payable in the manner and 
4.26 	at the times provided in chapter 289A.  Liability for the tax is incurred when the person 
4.27 	receives the paint.
4.28 		Subd. 3.Computation. In computing the tax under this section, a proportional tax 
4.29 	at a like rate on all fractional parts of a United States gallon must be paid.
4.30 		Subd. 4.Metric conversion. The commission may establish a date and procedure 
4.31 	for the conversion of the excise tax computation and reporting from rates expressed in 
4.32 	gallons to rates expressed in metric volumes.  The official conversion factor is one liter 
4.33 	equals 0.264172 United States gallons.

5.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
5.2 	and applies to paint shipped after September 30, 2007.

5.3 	Sec. 11. [297J.03] DEPOSIT OF FUNDS.
5.4 	The commissioner shall deposit all tax, penalties, and interest collected under this 
5.5 	chapter in a lead risk assessment and lead hazard reduction account in the general fund. 
5.6 	Money in the lead risk assessment and lead hazard reduction account must be used to 
5.7 	fund lead risk assessment and lead hazard reduction activities that an assessing agency 
5.8 	conducts under section 144.9504.  The commissioner of health shall establish a method 
5.9 	of distributing funds from the lead risk assessment and lead hazard reduction account 
5.10 	throughout the state with priority on allocating funds to areas where children and pregnant 
5.11 	women are at the greatest risk of developing elevated blood lead levels.

5.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
5.13 	and applies to paint shipped after September 30, 2007.

5.14 	Sec. 12. [297J.04] TAX PERMIT.
5.15 		Subdivision 1.Permit required. Every wholesaler must apply to the commissioner, 
5.16 	on a form prescribed by the commissioner, for a paint tax identification number and paint 
5.17 	tax permit.  A permit is not assignable and is valid only for the wholesaler in whose name 
5.18 	it is issued.
5.19 		Subd. 2.Inclusion on invoice. The wholesaler's paint tax identification number 
5.20 	must be included on every invoice for paint sent to a Minnesota retailer or consumer.

5.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
5.22 	and applies to paint shipped after September 30, 2007.