Bill Text: MN HF253 | 2011-2012 | 87th Legislature | Introduced
Bill Title: June accelerated tax payment repealed.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-08 - Author added Norton [HF253 Detail]
Download: Minnesota-2011-HF253-Introduced.html
1.2relating to taxation; sales and use; repealing June accelerated tax payment;
1.3amending Minnesota Statutes 2010, sections 289A.18, subdivision 4; 289A.20,
1.4subdivision 4; 297F.09, subdivisions 1, 2; 297F.25, subdivision 2; repealing
1.5Minnesota Statutes 2010, sections 289A.60, subdivision 15; 297F.09, subdivision
1.610; 297G.09, subdivision 9.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 289A.18, subdivision 4, is amended to
1.9read:
1.10 Subd. 4. Sales and use tax returns. (a) Sales and use tax returns must be filed on or
1.11before the 20th day of the month following the close of the preceding reporting period,
1.12except that annual use tax returns provided for under section289A.11, subdivision 1 , must
1.13be filed by April 15 following the close of the calendar year, in the case of individuals.
1.14Annual use tax returns of businesses, including sole proprietorships, and annual sales tax
1.15returns must be filed by February 5 following the close of the calendar year.
1.16(b) Returns for the June reporting period filed by retailers required to remit their
1.17June liability under section
289A.20, subdivision 4, paragraph (b), are due on or before
1.18August 20.
1.19(c) (b) If a retailer has an average sales and use tax liability, including local sales and
1.20use taxes administered by the commissioner, equal to or less than $500 per month in any
1.21quarter of a calendar year, and has substantially complied with the tax laws during the
1.22preceding four calendar quarters, the retailer may request authorization to file and pay the
1.23taxes quarterly in subsequent calendar quarters. The authorization remains in effect during
1.24the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less
1.25than $1,500 and there is continued compliance with state tax laws.
2.1(d) (c) If a retailer has an average sales and use tax liability, including local sales and
2.2use taxes administered by the commissioner, equal to or less than $100 per month during a
2.3calendar year, and has substantially complied with the tax laws during that period, the
2.4retailer may request authorization to file and pay the taxes annually in subsequent years.
2.5The authorization remains in effect during the period in which the retailer's annual returns
2.6reflect sales and use tax liabilities of less than $1,200 and there is continued compliance
2.7with state tax laws.
2.8(e) (d) The commissioner may also grant quarterly or annual filing and payment
2.9authorizations to retailers if the commissioner concludes that the retailers' future tax
2.10liabilities will be less than the monthly totals identified in paragraphs (b) and (c)and (d).
2.11An authorization granted under this paragraph is subject to the same conditions as an
2.12authorization granted under paragraphs (b) and (c)and (d).
2.13(f) (e) A taxpayer who is a materials supplier may report gross receipts either on:
2.14(1) the cash basis as the consideration is received; or
2.15(2) the accrual basis as sales are made.
2.16As used in this paragraph, "materials supplier" means a person who provides materials
2.17for the improvement of real property; who is primarily engaged in the sale of lumber and
2.18building materials-related products to owners, contractors, subcontractors, repairers,
2.19or consumers; who is authorized to file a mechanics lien upon real property and
2.20improvements under chapter 514; and who files with the commissioner an election to file
2.21sales and use tax returns on the basis of this paragraph.
2.22(g) (f) Notwithstanding paragraphs (a) to (f) (e) , a seller that is not a Model 1, 2, or
2.233 seller, as those terms are used in the Streamlined Sales and Use Tax Agreement, that
2.24does not have a legal requirement to register in Minnesota, and that is registered under the
2.25agreement, must file a return by February 5 following the close of the calendar year in
2.26which the seller initially registers, and must file subsequent returns on February 5 on an
2.27annual basis in succeeding years. Additionally, a return must be submitted on or before
2.28the 20th day of the month following any month by which sellers have accumulated state
2.29and local tax funds for the state in the amount of $1,000 or more.
2.30EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
2.31liabilities.
2.32 Sec. 2. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to read:
2.33 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
2.34payable to the commissioner monthly on or before the 20th day of the month following the
3.1month in which the taxable event occurred, or following another reporting period as the
3.2commissioner prescribes or as allowed under section289A.18, subdivision 4 , paragraph
3.3(e) or (f)or (g), except that:
3.4(1) use taxes due on an annual use tax return as provided under section
289A.11,
3.5subdivision 1 , are payable by April 15 following the close of the calendar year.; and
3.6(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
3.7or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
3.8imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
3.9commissioner monthly in the following manner:
3.10(i) On or before the 14th day of the month following the month in which the taxable
3.11event occurred, the vendor must remit to the commissioner 90 percent of the estimated
3.12liability for the month in which the taxable event occurred.
3.13(ii) On or before the 20th day of the month in which the taxable event occurs, the
3.14vendor must remit to the commissioner a prepayment for the month in which the taxable
3.15event occurs equal to 67 percent of the liability for the previous month.
3.16(iii) On or before the 20th day of the month following the month in which the taxable
3.17event occurred, the vendor must pay any additional amount of tax not previously remitted
3.18under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
3.19the vendor's liability for the month in which the taxable event occurred, the vendor may
3.20take a credit against the next month's liability in a manner prescribed by the commissioner.
3.21(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
3.22continue to make payments in the same manner, as long as the vendor continues having a
3.23liability of $120,000 or more during the most recent fiscal year ending June 30.
3.24(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
3.25payment in the first month that the vendor is required to make a payment under either item
3.26(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
3.27subsequent monthly payments in the manner provided in item (ii).
3.28(vi) For vendors making an accelerated payment under item (ii), for the first month
3.29that the vendor is required to make the accelerated payment, on the 20th of that month, the
3.30vendor will pay 100 percent of the liability for the previous month and a prepayment for
3.31the first month equal to 67 percent of the liability for the previous month.
3.32(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
3.33during a fiscal year ending June 30 must remit the June liability for the next year in the
3.34following manner:
3.35(1) Two business days before June 30 of the year, the vendor must remit 90 percent
3.36of the estimated June liability to the commissioner.
4.1(2) On or before August 20 of the year, the vendor must pay any additional amount
4.2of tax not remitted in June.
4.3(c) (b) A vendor having a liability of:
4.4(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
4.52009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
4.6due for periods beginning in the subsequent calendar year on or before the 20th day of
4.7the month following the month in which the taxable event occurred, or on or before the
4.820th day of the month following the month in which the sale is reported under section
4.9289A.18, subdivision 4
; or
.4.10(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
4.11thereafter, must remit by electronic means all liabilities in the manner provided in
4.12paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
4.13year, except for 90 percent of the estimated June liability, which is due two business days
4.14before June 30. The remaining amount of the June liability is due on August 20.
4.15(d) (c) Notwithstanding paragraph (a) or (b) or (c), a person prohibited by the
4.16person's religious beliefs from paying electronically shall be allowed to remit the payment
4.17by mail. The filer must notify the commissioner of revenue of the intent to pay by mail
4.18before doing so on a form prescribed by the commissioner. No extra fee may be charged to
4.19a person making payment by mail under this paragraph. The payment must be postmarked
4.20at least two business days before the due date for making the payment in order to be
4.21considered paid on a timely basis.
4.22(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
4.23under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
4.24chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
4.25paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
4.26be accelerated as provided in this subdivision.
4.27(f) At the start of the first calendar quarter at least 90 days after the cash flow
4.28account established in section
16A.152, subdivision 1, and the budget reserve account
4.29established in section
16A.152, subdivision 1a, reach the amounts listed in section
4.3016A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
4.31under paragraph (a), clause (2), must be suspended. The commissioner of management
4.32and budget shall notify the commissioner of revenue when the accounts have reached
4.33the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
4.34vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
4.35and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
4.36commissioner on the 20th day of the month following the month in which the taxable
5.1event occurred. Payments of tax liabilities for taxable events occurring in June under
5.2paragraph (b) are not changed.
5.3EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
5.4liabilities.
5.5 Sec. 3. Minnesota Statutes 2010, section 297F.09, subdivision 1, is amended to read:
5.6 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day
5.7of each calendar month, a distributor with a place of business in this state shall file a
5.8return with the commissioner showing the quantity of cigarettes manufactured or brought
5.9in from outside the state or purchased during the preceding calendar month and the
5.10quantity of cigarettes sold or otherwise disposed of in this state and outside this state
5.11during that month. A licensed distributor outside this state shall in like manner file a
5.12return showing the quantity of cigarettes shipped or transported into this state during the
5.13preceding calendar month. Returns must be made in the form and manner prescribed by
5.14the commissioner and must contain any other information required by the commissioner.
5.15The return must be accompanied by a remittance for the full unpaid tax liability shown by
5.16it.For distributors subject to the accelerated tax payment requirements in subdivision 10,
5.17the return for the May liability is due two business days before June 30th of the year and
5.18the return for the June liability is due on or before August 18th of the year.
5.19EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
5.20liabilities.
5.21 Sec. 4. Minnesota Statutes 2010, section 297F.09, subdivision 2, is amended to read:
5.22 Subd. 2. Monthly return; tobacco products distributor. On or before the 18th
5.23day of each calendar month, a distributor with a place of business in this state shall file
5.24a return with the commissioner showing the quantity and wholesale sales price of each
5.25tobacco product:
5.26(1) brought, or caused to be brought, into this state for sale; and
5.27(2) made, manufactured, or fabricated in this state for sale in this state, during the
5.28preceding calendar month.
5.29Every licensed distributor outside this state shall in like manner file a return showing the
5.30quantity and wholesale sales price of each tobacco product shipped or transported to
5.31retailers in this state to be sold by those retailers, during the preceding calendar month.
5.32Returns must be made in the form and manner prescribed by the commissioner and
5.33must contain any other information required by the commissioner. The return must be
6.1accompanied by a remittance for the full tax liability shown.For distributors subject to the
6.2accelerated tax payment requirements in subdivision 10, the return for the May liability is
6.3due two business days before June 30th of the year and the return for the June liability is
6.4due on or before August 18th of the year.
6.5EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.6liabilities.
6.7 Sec. 5. Minnesota Statutes 2010, section 297F.25, subdivision 2, is amended to read:
6.8 Subd. 2. Payment. Each taxpayer must remit payments of the taxes to the
6.9commissioner on the same dates prescribed under section297F.09, subdivision 1 , for
6.10cigarette tax returns, including the accelerated remittance of the June liability.
6.11EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.12liabilities.
6.13 Sec. 6. REPEALER.
6.14Minnesota Statutes 2010, sections 289A.60, subdivision 15; 297F.09, subdivision
6.1510; and 297G.09, subdivision 9, are repealed.
6.16EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.17liabilities.
1.3amending Minnesota Statutes 2010, sections 289A.18, subdivision 4; 289A.20,
1.4subdivision 4; 297F.09, subdivisions 1, 2; 297F.25, subdivision 2; repealing
1.5Minnesota Statutes 2010, sections 289A.60, subdivision 15; 297F.09, subdivision
1.610; 297G.09, subdivision 9.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 289A.18, subdivision 4, is amended to
1.9read:
1.10 Subd. 4. Sales and use tax returns. (a) Sales and use tax returns must be filed on or
1.11before the 20th day of the month following the close of the preceding reporting period,
1.12except that annual use tax returns provided for under section
1.13be filed by April 15 following the close of the calendar year, in the case of individuals.
1.14Annual use tax returns of businesses, including sole proprietorships, and annual sales tax
1.15returns must be filed by February 5 following the close of the calendar year.
1.16
1.17
1.18
1.19
1.20use taxes administered by the commissioner, equal to or less than $500 per month in any
1.21quarter of a calendar year, and has substantially complied with the tax laws during the
1.22preceding four calendar quarters, the retailer may request authorization to file and pay the
1.23taxes quarterly in subsequent calendar quarters. The authorization remains in effect during
1.24the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less
1.25than $1,500 and there is continued compliance with state tax laws.
2.1
2.2use taxes administered by the commissioner, equal to or less than $100 per month during a
2.3calendar year, and has substantially complied with the tax laws during that period, the
2.4retailer may request authorization to file and pay the taxes annually in subsequent years.
2.5The authorization remains in effect during the period in which the retailer's annual returns
2.6reflect sales and use tax liabilities of less than $1,200 and there is continued compliance
2.7with state tax laws.
2.8
2.9authorizations to retailers if the commissioner concludes that the retailers' future tax
2.10liabilities will be less than the monthly totals identified in paragraphs (b) and (c)
2.11An authorization granted under this paragraph is subject to the same conditions as an
2.12authorization granted under paragraphs (b) and (c)
2.13
2.14(1) the cash basis as the consideration is received; or
2.15(2) the accrual basis as sales are made.
2.16As used in this paragraph, "materials supplier" means a person who provides materials
2.17for the improvement of real property; who is primarily engaged in the sale of lumber and
2.18building materials-related products to owners, contractors, subcontractors, repairers,
2.19or consumers; who is authorized to file a mechanics lien upon real property and
2.20improvements under chapter 514; and who files with the commissioner an election to file
2.21sales and use tax returns on the basis of this paragraph.
2.22
2.233 seller, as those terms are used in the Streamlined Sales and Use Tax Agreement, that
2.24does not have a legal requirement to register in Minnesota, and that is registered under the
2.25agreement, must file a return by February 5 following the close of the calendar year in
2.26which the seller initially registers, and must file subsequent returns on February 5 on an
2.27annual basis in succeeding years. Additionally, a return must be submitted on or before
2.28the 20th day of the month following any month by which sellers have accumulated state
2.29and local tax funds for the state in the amount of $1,000 or more.
2.30EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
2.31liabilities.
2.32 Sec. 2. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to read:
2.33 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
2.34payable to the commissioner monthly on or before the 20th day of the month following the
3.1month in which the taxable event occurred, or following another reporting period as the
3.2commissioner prescribes or as allowed under section
3.3(e) or (f)
3.4
3.5subdivision 1
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20
3.21
3.22
3.23
3.24
3.25
3.26
3.27
3.28
3.29
3.30
3.31
3.32
3.33
3.34
3.35
3.36
4.1
4.2
4.3
4.4
4.5
4.6due for periods beginning in the subsequent calendar year on or before the 20th day of
4.7the month following the month in which the taxable event occurred, or on or before the
4.820th day of the month following the month in which the sale is reported under section
.4.10
4.11
4.12
4.13
4.14
4.15
4.16person's religious beliefs from paying electronically shall be allowed to remit the payment
4.17by mail. The filer must notify the commissioner of revenue of the intent to pay by mail
4.18before doing so on a form prescribed by the commissioner. No extra fee may be charged to
4.19a person making payment by mail under this paragraph. The payment must be postmarked
4.20at least two business days before the due date for making the payment in order to be
4.21considered paid on a timely basis.
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
4.33
4.34
4.35
4.36
5.1
5.2
5.3EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
5.4liabilities.
5.5 Sec. 3. Minnesota Statutes 2010, section 297F.09, subdivision 1, is amended to read:
5.6 Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day
5.7of each calendar month, a distributor with a place of business in this state shall file a
5.8return with the commissioner showing the quantity of cigarettes manufactured or brought
5.9in from outside the state or purchased during the preceding calendar month and the
5.10quantity of cigarettes sold or otherwise disposed of in this state and outside this state
5.11during that month. A licensed distributor outside this state shall in like manner file a
5.12return showing the quantity of cigarettes shipped or transported into this state during the
5.13preceding calendar month. Returns must be made in the form and manner prescribed by
5.14the commissioner and must contain any other information required by the commissioner.
5.15The return must be accompanied by a remittance for the full unpaid tax liability shown by
5.16it.
5.17
5.18
5.19EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
5.20liabilities.
5.21 Sec. 4. Minnesota Statutes 2010, section 297F.09, subdivision 2, is amended to read:
5.22 Subd. 2. Monthly return; tobacco products distributor. On or before the 18th
5.23day of each calendar month, a distributor with a place of business in this state shall file
5.24a return with the commissioner showing the quantity and wholesale sales price of each
5.25tobacco product:
5.26(1) brought, or caused to be brought, into this state for sale; and
5.27(2) made, manufactured, or fabricated in this state for sale in this state, during the
5.28preceding calendar month.
5.29Every licensed distributor outside this state shall in like manner file a return showing the
5.30quantity and wholesale sales price of each tobacco product shipped or transported to
5.31retailers in this state to be sold by those retailers, during the preceding calendar month.
5.32Returns must be made in the form and manner prescribed by the commissioner and
5.33must contain any other information required by the commissioner. The return must be
6.1accompanied by a remittance for the full tax liability shown.
6.2
6.3
6.4
6.5EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.6liabilities.
6.7 Sec. 5. Minnesota Statutes 2010, section 297F.25, subdivision 2, is amended to read:
6.8 Subd. 2. Payment. Each taxpayer must remit payments of the taxes to the
6.9commissioner on the same dates prescribed under section
6.10cigarette tax returns
6.11EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.12liabilities.
6.13 Sec. 6. REPEALER.
6.14Minnesota Statutes 2010, sections 289A.60, subdivision 15; 297F.09, subdivision
6.1510; and 297G.09, subdivision 9, are repealed.
6.16EFFECTIVE DATE.This section is effective beginning with the June 2011 tax
6.17liabilities.
