2007 Minnesota Statutes

297A.66 JURISDICTION TO REQUIRE COLLECTION AND REMITTANCE OF TAX
BY RETAILER.
    Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution and
the laws of the United States, "retailer maintaining a place of business in this state," or a similar
term, means a retailer:
(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an office,
place of distribution, sales or sample room or place, warehouse, or other place of business; or
(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
canvasser, or solicitor operating in this state under the authority of the retailer or its subsidiary,
for any purpose, including the repairing, selling, delivering, installing, or soliciting of orders for
the retailer's goods or services, or the leasing of tangible personal property located in this state,
whether the place of business or agent, representative, affiliate, salesperson, canvasser, or solicitor
is located in the state permanently or temporarily, or whether or not the retailer, subsidiary, or
affiliate is authorized to do business in this state.
(b) "Destination of a sale" means the location to which the retailer makes delivery of the
property sold, or causes the property to be delivered, to the purchaser of the property, or to the
agent or designee of the purchaser. The delivery may be made by any means, including the
United States Postal Service or a for-hire carrier.
    Subd. 2. Retailer maintaining a place of business in this state. 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.
    Subd. 3. Retailer not maintaining a place of business in this state. (a) To the extent
allowed by the United States Constitution and the laws of the United States, a retailer making
retail sales from outside this state to a destination within this state and not maintaining a place
of business in this state shall collect sales and use taxes and remit them to the commissioner
under section 297A.77, if the retailer engages in the regular or systematic soliciting of sales from
potential customers in this state by:
(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or other
written solicitations of business to customers in this state;
(2) display of advertisements on billboards or other outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals the circulation of which is primarily
within this state;
(5) advertisements in a Minnesota edition of a national or regional publication or a limited
regional edition in which this state is included as part of a broader regional or national publication
which are not placed in other geographically defined editions of the same issue of the same
publication;
(6) advertisements in regional or national publications in an edition which is not by its
contents geographically targeted to Minnesota but which is sold over the counter in Minnesota or
by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television station located in Minnesota; or
(8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
microwave, or other communication system.
This paragraph (a) must be construed without regard to the state from which distribution of
the materials originated or in which they were prepared.
(b) The location within or without this state of independent vendors that provide products or
services to the retailer in connection with its solicitation of customers within this state, including
such products and services as creation of copy, printing, distribution, and recording, is not
considered in determining whether the retailer is required to collect tax.
(c) A retailer not maintaining a place of business in this state is presumed, subject to rebuttal,
to be engaged in regular solicitation within this state if it engages in any of the activities in
paragraph (a) and:
(1) makes 100 or more retail sales from outside this state to destinations in this state during a
period of 12 consecutive months; or
(2) makes ten or more retail sales totaling more than $100,000 from outside this state to
destinations in this state during a period of 12 consecutive months.
    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of
subdivision 1, paragraph (a), if:
(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate
the establishment or maintenance of a market for sales of items by the retailer to purchasers in this
state or for the provision of services to the retailer's purchasers in this state, such as accepting
returns of purchases for the retailer, providing assistance in resolving customer complaints of
the retailer, or providing other services; and
(2) the retailer and the entity are related parties.
(b) Two entities are related parties under this section if one of the entities meets at least one
of the following tests with respect to the other entity:
(1) one or both entities is a corporation, and one entity and any party related to that entity
in a manner that would require an attribution of stock from the corporation to the party or from
the party to the corporation under the attribution rules of section 318 of the Internal Revenue
Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the value of
the corporation's outstanding stock;
(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, and the
partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, beneficially,
or constructively, in the aggregate, at least 50 percent of the profits, capital, stock, or value of
the other entity or both entities; or
(3) an individual stockholder and the members of the stockholder's family (as defined in
section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or constructively,
in the aggregate, at least 50 percent of the value of both entities' outstanding stock.
(c) An entity is an affiliate under the provisions of this subdivision if the requirements of
paragraphs (a) and (b) are met during any part of the 12-month period ending on the first day of
the month before the month in which the sale was made.
    Subd. 5. Withdrawal from streamlined sales and use tax agreement. If the state has
withdrawn its membership or been expelled from the streamlined sales and use tax agreement,
it shall not use a seller's registration with the central registration system and the collection
of sales and use taxes in the state as a factor in determining whether the seller has nexus with
that state for any tax at any time.
History: 2000 c 418 art 1 s 9; 1Sp2001 c 5 art 12 s 33,34; 2002 c 377 art 3 s 5,6; 2003 c
127 art 1 s 17