Bill Text: MN SF2094 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Sales and use tax returns June accelerated payment requirements elimination
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-02-27 - Referred to Taxes [SF2094 Detail]
Download: Minnesota-2013-SF2094-Introduced.html
1.2relating to taxation; sales and use; eliminating accelerated payment requirements;
1.3amending Minnesota Statutes 2012, sections 289A.18, subdivision 4; 289A.60,
1.4subdivision 21; Minnesota Statutes 2013 Supplement, section 289A.20,
1.5subdivision 4; repealing Minnesota Statutes 2012, section 289A.60, subdivision
1.615.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 289A.18, subdivision 4, is amended to read:
1.9 Subd. 4. Sales and use tax returns. (a) Sales and use tax returns must be filed on or
1.10before the 20th day of the month following the close of the preceding reporting period,
1.11except that annual use tax returns provided for under section289A.11, subdivision 1 , must
1.12be filed by April 15 following the close of the calendar year, in the case of individuals.
1.13Annual use tax returns of businesses, including sole proprietorships, and annual sales tax
1.14returns must be filed by February 5 following the close of the calendar year.
1.15(b) Returns for the June reporting period filed by retailers required to remit their
1.16June liability under section
289A.20, subdivision 4, paragraph (b), are due on or before
1.17August 20.
1.18(c) (b) If a retailer has an average sales and use tax liability, including local sales and
1.19use taxes administered by the commissioner, equal to or less than $500 per month in any
1.20quarter of a calendar year, and has substantially complied with the tax laws during the
1.21preceding four calendar quarters, the retailer may request authorization to file and pay the
1.22taxes quarterly in subsequent calendar quarters. The authorization remains in effect during
1.23the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less
1.24than $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(c) (b) and (d) (c).
2.11An authorization granted under this paragraph is subject to the same conditions as an
2.12authorization granted under paragraphs(c) (b) and (d) (c).
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 June 2014 tax
2.31liabilities.
2.32 Sec. 2. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is
2.33amended to read:
3.1 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
3.2payable to the commissioner monthly on or before the 20th day of the month following the
3.3month in which the taxable event occurred, or following another reporting period as the
3.4commissioner prescribes or as allowed under section289A.18, subdivision 4 , paragraph (f)
3.5 (e) or(g) (f), except that use taxes due on an annual use tax return as provided under section
3.6289A.11, subdivision 1
, are payable by April 15 following the close of the calendar year.
3.7(b) A vendor having a liability of $120,000 or more during a fiscal year ending June
3.830 must remit the June liability for the next year in the following manner:
3.9(1) Two business days before June 30 of the year, the vendor must remit 90 percent
3.10of the estimated June liability to the commissioner.
3.11(2) On or before August 20 of the year, the vendor must pay any additional amount
3.12of tax not remitted in June.
3.13(c) (b) A vendor having a liability of:
3.14(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
3.152013, and fiscal years thereafter, must remit by electronic means all liabilities on returns
3.16due for periods beginning in all subsequent calendar years on or before the 20th day of
3.17the month following the month in which the taxable event occurred, or on or before the
3.1820th day of the month following the month in which the sale is reported under section
3.19289A.18, subdivision 4
; or.
3.20(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
3.21thereafter, must remit by electronic means all liabilities in the manner provided in
3.22paragraph (a) on returns due for periods beginning in the subsequent calendar year, except
3.23for 90 percent of the estimated June liability, which is due two business days before June
3.2430. The remaining amount of the June liability is due on August 20.
3.25(d) (c) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
3.26religious beliefs from paying electronically shall be allowed to remit the payment by mail.
3.27The filer must notify the commissioner of revenue of the intent to pay by mail before
3.28doing so on a form prescribed by the commissioner. No extra fee may be charged to a
3.29person making payment by mail under this paragraph. The payment must be postmarked
3.30at least two business days before the due date for making the payment in order to be
3.31considered paid on a timely basis.
3.32EFFECTIVE DATE.This section is effective beginning with June 2014 tax
3.33liabilities.
3.34 Sec. 3. Minnesota Statutes 2012, section 289A.60, subdivision 21, is amended to read:
4.1 Subd. 21. Penalty for failure to make payment by electronic means. In
4.2addition to other applicable penalties imposed by this section, after notification from the
4.3commissioner to the taxpayer that payments are required to be made by electronic means
4.4under section289A.20, subdivision 2 , paragraph (e), or 4, paragraph (c) (b), or
289A.26,
4.5subdivision 2a , and the payments are remitted by some other means, there is a penalty in
4.6the amount of five percent of each payment that should have been remitted electronically.
4.7After the commissioner's initial notification to the taxpayer that payments are required to
4.8be made by electronic means, the commissioner is not required to notify the taxpayer in
4.9subsequent periods if the initial notification specified the amount of tax liability at which a
4.10taxpayer is required to remit payments by electronic means. The penalty can be abated
4.11under the abatement procedures prescribed in section270C.34, subdivision 2 , if the failure
4.12to remit the payment electronically is due to reasonable cause.
4.13EFFECTIVE DATE.This section is effective beginning with June 2014 tax
4.14liabilities.
4.15 Sec. 4. REPEALER.
4.16Minnesota Statutes 2012, section 289A.60, subdivision 15, is repealed.
4.17EFFECTIVE DATE.This section is effective beginning with June 2014 tax
4.18liabilities.
1.3amending Minnesota Statutes 2012, sections 289A.18, subdivision 4; 289A.60,
1.4subdivision 21; Minnesota Statutes 2013 Supplement, section 289A.20,
1.5subdivision 4; repealing Minnesota Statutes 2012, section 289A.60, subdivision
1.615.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 289A.18, subdivision 4, is amended to read:
1.9 Subd. 4. Sales and use tax returns. (a) Sales and use tax returns must be filed on or
1.10before the 20th day of the month following the close of the preceding reporting period,
1.11except that annual use tax returns provided for under section
1.12be filed by April 15 following the close of the calendar year, in the case of individuals.
1.13Annual use tax returns of businesses, including sole proprietorships, and annual sales tax
1.14returns must be filed by February 5 following the close of the calendar year.
1.15
1.16
1.17
1.18
1.19use taxes administered by the commissioner, equal to or less than $500 per month in any
1.20quarter of a calendar year, and has substantially complied with the tax laws during the
1.21preceding four calendar quarters, the retailer may request authorization to file and pay the
1.22taxes quarterly in subsequent calendar quarters. The authorization remains in effect during
1.23the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less
1.24than $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
2.11An authorization granted under this paragraph is subject to the same conditions as an
2.12authorization granted under paragraphs
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 June 2014 tax
2.31liabilities.
2.32 Sec. 2. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is
2.33amended to read:
3.1 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
3.2payable to the commissioner monthly on or before the 20th day of the month following the
3.3month in which the taxable event occurred, or following another reporting period as the
3.4commissioner prescribes or as allowed under section
3.5 (e) or
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16due for periods beginning in all subsequent calendar years on or before the 20th day of
3.17the month following the month in which the taxable event occurred, or on or before the
3.1820th day of the month following the month in which the sale is reported under section
3.20
3.21
3.22
3.23
3.24
3.25
3.26religious beliefs from paying electronically shall be allowed to remit the payment by mail.
3.27The filer must notify the commissioner of revenue of the intent to pay by mail before
3.28doing so on a form prescribed by the commissioner. No extra fee may be charged to a
3.29person making payment by mail under this paragraph. The payment must be postmarked
3.30at least two business days before the due date for making the payment in order to be
3.31considered paid on a timely basis.
3.32EFFECTIVE DATE.This section is effective beginning with June 2014 tax
3.33liabilities.
3.34 Sec. 3. Minnesota Statutes 2012, section 289A.60, subdivision 21, is amended to read:
4.1 Subd. 21. Penalty for failure to make payment by electronic means. In
4.2addition to other applicable penalties imposed by this section, after notification from the
4.3commissioner to the taxpayer that payments are required to be made by electronic means
4.4under section
4.5subdivision 2a
4.6the amount of five percent of each payment that should have been remitted electronically.
4.7After the commissioner's initial notification to the taxpayer that payments are required to
4.8be made by electronic means, the commissioner is not required to notify the taxpayer in
4.9subsequent periods if the initial notification specified the amount of tax liability at which a
4.10taxpayer is required to remit payments by electronic means. The penalty can be abated
4.11under the abatement procedures prescribed in section
4.12to remit the payment electronically is due to reasonable cause.
4.13EFFECTIVE DATE.This section is effective beginning with June 2014 tax
4.14liabilities.
4.15 Sec. 4. REPEALER.
4.16Minnesota Statutes 2012, section 289A.60, subdivision 15, is repealed.
4.17EFFECTIVE DATE.This section is effective beginning with June 2014 tax
4.18liabilities.
