2001 Minnesota Statutes

     297A.66 Jurisdiction to require collection and 
  remittance of tax by retailer. 

    Subdivision 1.    Definitions.  (a) "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, an office, place of distribution, sales or sample 
 room or place, warehouse, or other place of business; or 

    (2) having a representative, 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, salesperson, 
 canvasser, or solicitor is located in the state permanently or 
 temporarily, or whether or not the retailer or subsidiary 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. 

    HIST: 2000 c 418 art 1 s 9; 1Sp2001 c 5 art 12 s 33,34