Bill Text: MN HF2031 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Sales tax exemption for nonbusiness Internet purchases.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-02-23 - Author added Stensrud [HF2031 Detail]
Download: Minnesota-2011-HF2031-Introduced.html
1.2relating to sales and use tax; exempting nonbusiness purchases made over the
1.3Internet;amending Minnesota Statutes 2010, section 297A.67, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.67, is amended by adding a
1.7subdivision to read:
1.8 Subd. 33. Personal Internet purchases. (a) Sales and purchases of products
1.9or services made over the Internet are exempt provided that the product or service is
1.10delivered to the purchaser either (1) electronically, or (2) through a common carrier.
1.11Purchases or sales where the consumer takes delivery of the good or service on premises
1.12owned or controlled by the seller or where the seller uses its own vehicles to deliver the
1.13good or service to the purchaser are not included in this exemption.
1.14(b) The exemption in this subdivision does not include electronic purchases of
1.15goods and services for business purposes. For purposes of this subdivision, "purchases of
1.16goods and services for business purposes" means the purchase of any product or good
1.17that qualifies as an ordinary and necessary business expense that is deductible under the
1.18Internal Revenue Code or must be capitalized and that may be deducted under depreciation
1.19or amortization rules under the Internal Revenue Code.
1.20EFFECTIVE DATE.This section is effective for sales and purchases made after
1.21June 30, 2012.
1.3Internet;amending Minnesota Statutes 2010, section 297A.67, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.67, is amended by adding a
1.7subdivision to read:
1.8 Subd. 33. Personal Internet purchases. (a) Sales and purchases of products
1.9or services made over the Internet are exempt provided that the product or service is
1.10delivered to the purchaser either (1) electronically, or (2) through a common carrier.
1.11Purchases or sales where the consumer takes delivery of the good or service on premises
1.12owned or controlled by the seller or where the seller uses its own vehicles to deliver the
1.13good or service to the purchaser are not included in this exemption.
1.14(b) The exemption in this subdivision does not include electronic purchases of
1.15goods and services for business purposes. For purposes of this subdivision, "purchases of
1.16goods and services for business purposes" means the purchase of any product or good
1.17that qualifies as an ordinary and necessary business expense that is deductible under the
1.18Internal Revenue Code or must be capitalized and that may be deducted under depreciation
1.19or amortization rules under the Internal Revenue Code.
1.20EFFECTIVE DATE.This section is effective for sales and purchases made after
1.21June 30, 2012.
