2002 Minnesota Statutes

     297A.668 Sourcing of sale; situs in this state. 

    Subdivision 1.    Sourcing rules.  (a) The following 
 provisions apply regardless of the characterization of a product 
 as tangible personal property, a digital good, or a service; but 
 do not apply to telecommunications services, or the sales of 
 motor vehicles, watercraft, aircraft, modular homes, 
 manufactured homes, or mobile homes.  These provisions only 
 apply to determine a seller's obligation to pay or collect and 
 remit a sales or use tax with respect to the seller's sale of a 
 product.  These provisions do not affect the obligation of a 
 seller as purchaser to remit tax on the use of the product. 

    (b) When the product is received by the purchaser at a 
 business location of the seller, the sale is sourced to that 
 business location. 

    (c) When the product is not received by the purchaser at a 
 business location of the seller, the sale is sourced to the 
 location where receipt by the purchaser or the donee designated 
 by the purchaser occurs, including the location indicated by 
 instructions for delivery to the purchasers or the purchaser's 
 donee, known to the seller. 

    (d) When paragraphs (b) and (c) do not apply, the sale is 
 sourced to the location indicated by an address for the 
 purchaser that is available from the business records of the 
 seller that are maintained in the ordinary course of the 
 seller's business, when use of this address does not constitute 
 bad faith. 

    (e) When paragraphs (b), (c), and (d) do not apply, the 
 sale is sourced to the location indicated by an address for the 
 purchaser obtained during the consummation of the sale, 
 including the address of a purchaser's payment instrument if no 
 other address is available, when use of this address does not 
 constitute bad faith. 

    (f) When paragraphs (b), (c), (d), and (e) do not apply, 
 including the circumstance where the seller is without 
 sufficient information to apply the previous paragraphs, then 
 the location is determined by the address from which tangible 
 personal property was shipped, from which the digital good was 
 first available for transmission by the seller, or from which 
 the service was provided. 

    Subd. 2.    Multiple points of use.  (a) Notwithstanding 
 the provisions of subdivision 1, a business purchaser that is 
 not a holder of a direct pay permit that knows at the time of 
 its purchase of a digital good or service that the digital good 
 or service will be concurrently available for use in more than 
 one taxing jurisdiction shall deliver to the seller in 
 conjunction with its purchase a multiple points of use exemption 
 certificate disclosing this fact. 

    (b) Upon receipt of the multiple points of use exemption 
 certificate, the seller is relieved of the obligation to 
 collect, pay, or remit the applicable tax and the purchaser is 
 obligated to collect, pay, or remit the applicable tax on a 
 direct pay basis. 

    (c) A purchaser delivering the multiple points of use 
 exemption certificate may use any reasonable, but consistent and 
 uniform, method of apportionment that is supported by the 
 purchaser's business records as they exist at the time of the 
 consummation of the sale. 

    (d) The multiple points of use exemption certificate 
 remains in effect for all future sales by the seller to the 
 purchaser until it is revoked in writing. 

    (e) A holder of a direct pay permit is not required to 
 deliver a multiple points or use exemption certificate to the 
 seller.  A direct pay permit holder shall follow the provisions 
 of paragraph (c) in apportioning the tax due on a digital good 
 or a service that will be concurrently available for use in more 
 than one taxing jurisdiction. 

    Subd. 3.    Definition of terms.  For purposes of this 
 section, the terms "receive" and "receipt" mean taking 
 possession of tangible personal property, making first use of 
 services, or taking possession or making first use of digital 
 goods, whichever occurs first.  The terms receive and receipt do 
 not include possession by a carrier for hire on behalf of the 
 purchaser. 

    HIST: 1Sp2001 c 5 art 12 s 35; 2002 c 379 art 1 s 68