Bill Text: MN SF1006 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Streamlined sales and use tax agreement technical conforming provisions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-23 - Referred to Taxes [SF1006 Detail]
Download: Minnesota-2011-SF1006-Introduced.html
1.2relating to taxation; sales and use; making technical changes necessary to
1.3conform to streamlined sales and use tax agreement;amending Minnesota
1.4Statutes 2010, sections 297A.62, by adding a subdivision; 297A.63, by adding a
1.5subdivision; 297A.668, subdivision 7, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 297A.62, is amended by adding a
1.8subdivision to read:
1.9 Subd. 5. Transitional period for services. When there is a change in the rate of tax
1.10imposed by this section, the following transitional period shall apply to the retail sale of
1.11services covering a billing period starting before and ending after the statutory effective
1.12date of the rate change:
1.13(1) for a rate increase, the new rate shall apply to the first billing period starting
1.14on or after the effective date; and
1.15(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
1.16effective date.
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision
1.19to read:
1.20 Subd. 3. Transitional period for services. When there is a change in the rate of
1.21tax imposed by this section, the following transitional period shall apply to the taxable
1.22services purchased for use, storage, distribution, or consumption in this state when the
2.1service purchased covers a billing period starting before and ending after the statutory
2.2effective date of the rate change:
2.3(1) for a rate increase, the new rate shall apply to the first billing period starting
2.4on or after the effective date; and
2.5(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
2.6effective date.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 3. Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:
2.9 Subd. 7. Advertising and promotional direct mail. (a) Notwithstanding other
2.10subdivisions of this section, the provisions in paragraphs (b) to (e) apply to the sale of
2.11advertising and promotional direct mail. "Advertising and promotional direct mail" means
2.12printed material that is direct mail as defined in section 297A.61, subdivision 35, the
2.13primary purpose of which is to attract public attention to a product, person, business, or
2.14organization, or to attempt to sell, popularize, or secure financial support for a person,
2.15business, organization, or product. "Product" includes tangible personal property, a digital
2.16product transferred electronically, or a service.
2.17(b) A purchaser of advertising and promotional direct mailthat is not a holder of
2.18a direct pay permit shall provide to the seller, in conjunction with the purchase, either a
2.19direct mail form or may provide the seller with either:
2.20(1) a fully completed exemption certificate as described in section 297A.72
2.21indicating that the purchaser is authorized to pay any sales or use tax due on purchases
2.22made by the purchaser directly to the commissioner under section 297A.89;
2.23(2) a fully completed exemption certificate claiming an exemption for direct mail; or
2.24(3) informationto show showing the jurisdictions to which the advertising and
2.25promotional direct mail is to be delivered to recipients.
2.26(1) Upon receipt of the direct mail form, (c) In the absence of bad faith, if the
2.27purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1)
2.28and (2), the seller is relieved of all obligations to collect, pay, or remit the applicable tax
2.29and the purchaser is obligated to pay or remit theapplicable tax on a direct pay basis. A
2.30direct mail form remains in effect for all future sales of direct mail by the seller to the
2.31purchaser until it is revoked in writing. tax on any transaction involving advertising and
2.32promotional direct mail to which the certificate applies. The purchaser shall source the
2.33sale to the jurisdictions to which the advertising and promotional direct mail is to be
2.34delivered to the recipients of the mail, and shall report and pay any applicable tax due.
3.1(2) Upon receipt of (d) If the purchaser provides the seller information from the
3.2purchaser showing the jurisdictions to which the advertising and promotional direct mail
3.3is to be delivered to recipients, the seller shall source the sale to the jurisdictions to which
3.4the advertising and promotional direct mail is to be delivered and shall collect and remit
3.5the applicable taxaccording to the delivery information provided by the purchaser. In
3.6the absence of bad faith, the seller is relieved of any further obligation to collect any
3.7additional tax onany transaction for which the sale of advertising and promotional direct
3.8mail where the seller hascollected tax pursuant sourced the sale according to the delivery
3.9information provided by the purchaser.
3.10(b) (e) If the purchaser of direct mail does not have a direct pay permit and does
3.11not provide the seller with either a direct mail form or delivery information, as required
3.12by paragraph (a), the seller shall collect the tax according to any of the items listed in
3.13paragraph (b), the sale shall be sourced under subdivision 2, paragraph (f). Nothing in
3.14this paragraph limits a purchaser's obligation for sales or use tax to any state to which the
3.15direct mail is delivered.
3.16(c) If a purchaser of direct mail provides the seller with documentation of direct
3.17pay authority, the purchaser is not required to provide a direct mail form or delivery
3.18information to the seller.
3.19(f) This subdivision does not apply to printed materials that result from developing
3.20billing information or providing any data processing service that is more than incidental
3.21to producing the printed materials, regardless of whether advertising and promotional
3.22direct mail is included in the same mailing.
3.23(g) If a transaction is a bundled transaction that includes advertising and promotional
3.24direct mail, this subdivision applies only if the primary purpose of the transaction is the sale
3.25of products or services that meet the definition of advertising and promotional direct mail.
3.26EFFECTIVE DATE.This section is effective for sales and purchases made after
3.27June 30, 2011.
3.28 Sec. 4. Minnesota Statutes 2010, section 297A.668, is amended by adding a
3.29subdivision to read:
3.30 Subd. 7a. Other direct mail. (a) Notwithstanding other subdivisions of this section,
3.31the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct
3.32mail" means printed material that is direct mail as defined in section 297A.61, subdivision
3.3335, but is not advertising and promotional direct mail as described in subdivision 7,
3.34regardless of whether advertising and promotional direct mail is included in the same
3.35mailing. Other direct mail includes, but is not limited to:
4.1(1) direct mail pertaining to a transaction between the purchaser and addressee,
4.2where the mail contains personal information specific to the addressee including, but not
4.3limited to, invoices, bills, statements of account, and payroll advices;
4.4(2) any legally required mailings including, but not limited to, privacy notices,
4.5tax reports, and stockholder reports; and
4.6(3) other nonpromotional direct mail delivered to existing or former shareholders,
4.7customers, employees, or agents including, but not limited to, newsletters and
4.8informational pieces.
4.9Other direct mail does not include printed materials that result from developing
4.10billing information or providing any data processing service that is more than incidental to
4.11producing the other direct mail.
4.12(b) A purchaser of other direct mail may provide the seller with either a fully
4.13completed exemption certificate as described in section 297A.72 indicating that the
4.14purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser
4.15directly to the commissioner under section 297A.89, or a fully completed exemption
4.16certificate claiming an exemption for direct mail. If the purchaser provides one of the
4.17exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all
4.18obligations to collect, pay, or remit the tax on any transaction involving other direct mail
4.19to which the certificate applies. The purchaser shall source the sale to the jurisdictions to
4.20which the other direct mail is to be delivered to the recipients of the mail, and shall report
4.21and pay any applicable tax due.
4.22(c) If the purchaser does not provide the seller with a fully completed exemption
4.23certificate claiming either exemption listed in paragraph (b), the sale shall be sourced
4.24according to subdivision 2, paragraph (d).
4.25EFFECTIVE DATE.This section is effective for sales and purchases made after
4.26June 30, 2011.
1.3conform to streamlined sales and use tax agreement;amending Minnesota
1.4Statutes 2010, sections 297A.62, by adding a subdivision; 297A.63, by adding a
1.5subdivision; 297A.668, subdivision 7, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 297A.62, is amended by adding a
1.8subdivision to read:
1.9 Subd. 5. Transitional period for services. When there is a change in the rate of tax
1.10imposed by this section, the following transitional period shall apply to the retail sale of
1.11services covering a billing period starting before and ending after the statutory effective
1.12date of the rate change:
1.13(1) for a rate increase, the new rate shall apply to the first billing period starting
1.14on or after the effective date; and
1.15(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
1.16effective date.
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision
1.19to read:
1.20 Subd. 3. Transitional period for services. When there is a change in the rate of
1.21tax imposed by this section, the following transitional period shall apply to the taxable
1.22services purchased for use, storage, distribution, or consumption in this state when the
2.1service purchased covers a billing period starting before and ending after the statutory
2.2effective date of the rate change:
2.3(1) for a rate increase, the new rate shall apply to the first billing period starting
2.4on or after the effective date; and
2.5(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
2.6effective date.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 3. Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:
2.9 Subd. 7. Advertising and promotional direct mail. (a) Notwithstanding other
2.10subdivisions of this section, the provisions in paragraphs (b) to (e) apply to the sale of
2.11advertising and promotional direct mail. "Advertising and promotional direct mail" means
2.12printed material that is direct mail as defined in section 297A.61, subdivision 35, the
2.13primary purpose of which is to attract public attention to a product, person, business, or
2.14organization, or to attempt to sell, popularize, or secure financial support for a person,
2.15business, organization, or product. "Product" includes tangible personal property, a digital
2.16product transferred electronically, or a service.
2.17(b) A purchaser of advertising and promotional direct mail
2.18
2.19
2.20(1) a fully completed exemption certificate as described in section 297A.72
2.21indicating that the purchaser is authorized to pay any sales or use tax due on purchases
2.22made by the purchaser directly to the commissioner under section 297A.89;
2.23(2) a fully completed exemption certificate claiming an exemption for direct mail; or
2.24(3) information
2.25promotional direct mail is to be delivered to recipients.
2.26
2.27purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1)
2.28and (2), the seller is relieved of all obligations to collect, pay, or remit the applicable tax
2.29and the purchaser is obligated to pay or remit the
2.30
2.31
2.32promotional direct mail to which the certificate applies. The purchaser shall source the
2.33sale to the jurisdictions to which the advertising and promotional direct mail is to be
2.34delivered to the recipients of the mail, and shall report and pay any applicable tax due.
3.1
3.2
3.3is to be delivered to recipients, the seller shall source the sale to the jurisdictions to which
3.4the advertising and promotional direct mail is to be delivered and shall collect and remit
3.5the applicable tax
3.6the absence of bad faith, the seller is relieved of any further obligation to collect any
3.7additional tax on
3.8mail where the seller has
3.9information provided by the purchaser.
3.10
3.11
3.12
3.13paragraph (b), the sale shall be sourced under subdivision 2, paragraph (f). Nothing in
3.14this paragraph limits a purchaser's obligation for sales or use tax to any state to which the
3.15direct mail is delivered.
3.16
3.17
3.18
3.19(f) This subdivision does not apply to printed materials that result from developing
3.20billing information or providing any data processing service that is more than incidental
3.21to producing the printed materials, regardless of whether advertising and promotional
3.22direct mail is included in the same mailing.
3.23(g) If a transaction is a bundled transaction that includes advertising and promotional
3.24direct mail, this subdivision applies only if the primary purpose of the transaction is the sale
3.25of products or services that meet the definition of advertising and promotional direct mail.
3.26EFFECTIVE DATE.This section is effective for sales and purchases made after
3.27June 30, 2011.
3.28 Sec. 4. Minnesota Statutes 2010, section 297A.668, is amended by adding a
3.29subdivision to read:
3.30 Subd. 7a. Other direct mail. (a) Notwithstanding other subdivisions of this section,
3.31the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct
3.32mail" means printed material that is direct mail as defined in section 297A.61, subdivision
3.3335, but is not advertising and promotional direct mail as described in subdivision 7,
3.34regardless of whether advertising and promotional direct mail is included in the same
3.35mailing. Other direct mail includes, but is not limited to:
4.1(1) direct mail pertaining to a transaction between the purchaser and addressee,
4.2where the mail contains personal information specific to the addressee including, but not
4.3limited to, invoices, bills, statements of account, and payroll advices;
4.4(2) any legally required mailings including, but not limited to, privacy notices,
4.5tax reports, and stockholder reports; and
4.6(3) other nonpromotional direct mail delivered to existing or former shareholders,
4.7customers, employees, or agents including, but not limited to, newsletters and
4.8informational pieces.
4.9Other direct mail does not include printed materials that result from developing
4.10billing information or providing any data processing service that is more than incidental to
4.11producing the other direct mail.
4.12(b) A purchaser of other direct mail may provide the seller with either a fully
4.13completed exemption certificate as described in section 297A.72 indicating that the
4.14purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser
4.15directly to the commissioner under section 297A.89, or a fully completed exemption
4.16certificate claiming an exemption for direct mail. If the purchaser provides one of the
4.17exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all
4.18obligations to collect, pay, or remit the tax on any transaction involving other direct mail
4.19to which the certificate applies. The purchaser shall source the sale to the jurisdictions to
4.20which the other direct mail is to be delivered to the recipients of the mail, and shall report
4.21and pay any applicable tax due.
4.22(c) If the purchaser does not provide the seller with a fully completed exemption
4.23certificate claiming either exemption listed in paragraph (b), the sale shall be sourced
4.24according to subdivision 2, paragraph (d).
4.25EFFECTIVE DATE.This section is effective for sales and purchases made after
4.26June 30, 2011.
