Minnesota 2023-2024 Regular Session

Minnesota House Bill HF580 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to transportation; imposing a fee on the delivery of tangible personal
3	3	1.3 property; allocating funds; amending Minnesota Statutes 2022, sections 270C.15;
4	4	1.4 297A.61, subdivision 7; proposing coding for new law as Minnesota Statutes,
5	5	1.5 chapter 168E.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. [168E.01] DEFINITIONS.
8	8	1.8 Subdivision 1.Scope.As used in this chapter, the following terms have the meanings
9	9	1.9given.
10	10	1.10 Subd. 2.Clothing."Clothing" has the meaning given in section 297A.67, subdivision
11	11	1.118.
12	12	1.12 Subd. 3.Commissioner."Commissioner" means the commissioner of revenue.
13	13	1.13 Subd. 4.Motor vehicle."Motor vehicle" has the meaning given in section 168.002,
14	14	1.14subdivision 18.
15	15	1.15 Subd. 5.Retail delivery."Retail delivery" means a retail sale of tangible personal
16	16	1.16property by a retailer for delivery by a motor vehicle to the purchaser at a location in
17	17	1.17Minnesota in which the sale contains at least one item of tangible personal property that is
18	18	1.18subject to taxation under chapter 297A, including the retail sale of clothing notwithstanding
19	19	1.19the exemption from taxation for clothing under chapter 297A.
20	20	1.20 Subd. 6.Retail delivery fee."Retail delivery fee" means the fee imposed under section
21	21	1.21168E.03 on retail deliveries.
22	22	1Section 1.
23	23	REVISOR EAP/AD 23-0201401/17/23
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 580
29	29	NINETY-THIRD SESSION
30	30	Authored by Koegel and Hornstein01/19/2023
31	31	The bill was read for the first time and referred to the Committee on Transportation Finance and Policy 2.1 Subd. 7.Retail sale."Retail sale" has the meaning given in section 297A.61, subdivision
32	32	2.24.
33	33	2.3 Subd. 8.Retailer."Retailer" means any person making sales, leases, or rental of personal
34	34	2.4property or services within or into the state of Minnesota. Retailer includes a:
35	35	2.5 (1) retailer maintaining a place of business in this state;
36	36	2.6 (2) marketplace provider maintaining a place of business in this state, as defined in
37	37	2.7section 297A.66, subdivision 1, paragraph (a);
38	38	2.8 (3) retailer not maintaining a place of business in this state; and
39	39	2.9 (4) marketplace provider not maintaining a place of business in this state, as defined in
40	40	2.10section 297A.66, subdivision 1, paragraph (b).
41	41	2.11 Subd. 9.Tangible personal property."Tangible personal property" has the meaning
42	42	2.12given in section 297A.61, subdivision 10.
43	43	2.13 EFFECTIVE DATE.This section is effective January 1, 2024.
44	44	2.14 Sec. 2. [168E.03] FEE IMPOSED.
45	45	2.15 Subdivision 1.Rate.(a) A retailer who makes a retail delivery shall add to the price of
46	46	2.16the retail delivery a retail delivery fee to be collected from the purchaser. The retailer must
47	47	2.17remit the fee to the commissioner in the time and manner prescribed by the commissioner
48	48	2.18in accordance with this chapter.
49	49	2.19 (b) Beginning on January 1, 2024, through June 30, 2025, the retail delivery fee equals
50	50	2.20$0.40 per retail delivery. Beginning on July 1, 2025, through June 30, 2027, the retail
51	51	2.21delivery fee equals $0.45 per retail delivery. Beginning on July 1, 2027, and thereafter; the
52	52	2.22retail delivery fee equals $0.50 per retail delivery.
53	53	2.23 (c) The retail delivery fee must not be included in the sales price for purposes of
54	54	2.24calculating tax owed under chapter 297A.
55	55	2.25 (d) The retail delivery fee must be charged in addition to any other delivery fee. The
56	56	2.26retailer must show the total of the retail delivery fee and other delivery fees as separate
57	57	2.27items and distinct from the sales price and any other taxes or fees imposed on the retail
58	58	2.28delivery on the purchaser's receipt, invoice, or other bill of sale.
59	59	2.29 Subd. 2.Delivery.Each retail sale is a single retail delivery regardless of the number
60	60	2.30of shipments necessary to deliver the items of tangible personal property purchased.
61	61	2.31 EFFECTIVE DATE.This section is effective January 1, 2024.
62	62	2Sec. 2.
63	63	REVISOR EAP/AD 23-0201401/17/23 3.1 Sec. 3. [168E.05] EXEMPTIONS.
64	64	3.2 Subdivision 1.Certain transactions.A retail delivery that includes only tangible personal
65	65	3.3property that is exempt from taxation under chapter 297A, except tangible personal property
66	66	3.4that is exempt as clothing under chapter 297A, is exempt from the retail delivery fee.
67	67	3.5 Subd. 2.Certain entities.A purchaser who is exempt from tax under chapter 297A is
68	68	3.6exempt from the retail delivery fee.
69	69	3.7 EFFECTIVE DATE.This section is effective January 1, 2024.
70	70	3.8 Sec. 4. [168E.07] COLLECTION AND ADMINISTRATION.
71	71	3.9 Subdivision 1.Returns; payment of fees.A retailer must report the fee on a return
72	72	3.10prescribed by the commissioner and must remit the fee with the return. The return and fee
73	73	3.11must be filed and paid using the filing cycle and due dates provided for taxes imposed under
74	74	3.12chapter 297A.
75	75	3.13 Subd. 2.Administration.Unless specifically provided otherwise by this section, the
76	76	3.14audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
77	77	3.15administrative provisions of chapters 270C and 289A, that are applicable to taxes imposed
78	78	3.16under chapter 297A, apply to the fee imposed under this chapter.
79	79	3.17 Subd. 3.Interest on overpayments.The commissioner must pay interest on an
80	80	3.18overpayment refunded or credited to the retailer from the date of payment of the fee until
81	81	3.19the date the refund is paid or credited. For purposes of this subdivision, the date of payment
82	82	3.20is the due date of the return or the date of actual payment of the fee, whichever is later.
83	83	3.21 EFFECTIVE DATE.This section is effective January 1, 2024.
84	84	3.22 Sec. 5. [168E.09] DEPOSIT OF PROCEEDS.
85	85	3.23 Subdivision 1.Costs deducted.The commissioner shall retain an amount that does not
86	86	3.24exceed the total cost of collecting, administering, and enforcing the retail delivery fee and
87	87	3.25shall deposit the amount in the revenue department service and recovery special revenue
88	88	3.26fund.
89	89	3.27 Subd. 2.Deposits.The balance of proceeds shall be deposited as follows:
90	90	3.28 (1) 60 percent must be deposited in the highway user tax distribution fund;
91	91	3.29 (2) 36 percent must be deposited in the metropolitan area transit account under section
92	92	3.3016A.88; and
93	93	3Sec. 5.
94	94	REVISOR EAP/AD 23-0201401/17/23 4.1 (3) four percent must be deposited in the greater Minnesota transit account under section
95	95	4.216A.88.
96	96	4.3 EFFECTIVE DATE.This section is effective January 1, 2024.
97	97	4.4 Sec. 6. Minnesota Statutes 2022, section 270C.15, is amended to read:
98	98	4.5 270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
99	99	4.6REVENUE FUND.
100	100	4.7 A Revenue Department service and recovery special revenue fund is created for the
101	101	4.8purpose of recovering the costs of furnishing government data and related services or
102	102	4.9products, as well as recovering costs associated with collecting local taxes on sales and the
103	103	4.10retail delivery fee established under chapter 168E. All money collected under this section
104	104	4.11is deposited in the Revenue Department service and recovery special revenue fund. Money
105	105	4.12in the fund is appropriated to the commissioner to reimburse the department for the costs
106	106	4.13incurred in administering the tax law or providing the data, service, or product. Any money
107	107	4.14paid to the department as a criminal fine for a violation of state revenue law that is designated
108	108	4.15by the court to fund enforcement of state revenue law is appropriated to this fund.
109	109	4.16 EFFECTIVE DATE.This section is effective January 1, 2024.
110	110	4.17 Sec. 7. Minnesota Statutes 2022, section 297A.61, subdivision 7, is amended to read:
111	111	4.18 Subd. 7.Sales price.(a) "Sales price" means the measure subject to sales tax, and means
112	112	4.19the total amount of consideration, including cash, credit, personal property, and services,
113	113	4.20for which personal property or services are sold, leased, or rented, valued in money, whether
114	114	4.21received in money or otherwise, without any deduction for the following:
115	115	4.22 (1) the seller's cost of the property sold;
116	116	4.23 (2) the cost of materials used, labor or service cost, interest, losses, all costs of
117	117	4.24transportation to the seller, all taxes imposed on the seller, and any other expenses of the
118	118	4.25seller;
119	119	4.26 (3) charges by the seller for any services necessary to complete the sale, other than
120	120	4.27delivery and installation charges;
121	121	4.28 (4) delivery charges, except (i) the percentage of the delivery charge allocated to delivery
122	122	4.29of tax exempt property, when the delivery charge is allocated by using either (i) (A) a
123	123	4.30percentage based on the total sales price of the taxable property compared to the total sales
124	124	4.31price of all property in the shipment, or (ii) (B) a percentage based on the total weight of
125	125	4Sec. 7.
126	126	REVISOR EAP/AD 23-0201401/17/23 5.1the taxable property compared to the total weight of all property in the shipment, and (ii)
127	127	5.2the retail delivery fee imposed under chapter 168E; and
128	128	5.3 (5) installation charges.
129	129	5.4 (b) Sales price does not include:
130	130	5.5 (1) discounts, including cash, terms, or coupons, that are not reimbursed by a third party
131	131	5.6and that are allowed by the seller and taken by a purchaser on a sale;
132	132	5.7 (2) interest, financing, and carrying charges from credit extended on the sale of personal
133	133	5.8property or services, if the amount is separately stated on the invoice, bill of sale, or similar
134	134	5.9document given to the purchaser; and
135	135	5.10 (3) any taxes legally imposed directly on the consumer that are separately stated on the
136	136	5.11invoice, bill of sale, or similar document given to the purchaser.
137	137	5.12 (c) Sales price includes consideration received by the seller from third parties if:
138	138	5.13 (1) the seller actually receives consideration from a party other than the purchaser and
139	139	5.14the consideration is directly related to a price reduction or discount on the sale;
140	140	5.15 (2) the seller has an obligation to pass the price reduction or discount through to the
141	141	5.16purchaser;
142	142	5.17 (3) the amount of the consideration attributable to the sale is fixed and determinable by
143	143	5.18the seller at the time of the sale of the item to the purchaser; and
144	144	5.19 (4) one of the following criteria is met:
145	145	5.20 (i) the purchaser presents a coupon, certificate, or other documentation to the seller to
146	146	5.21claim a price reduction or discount when the coupon, certificate, or documentation is
147	147	5.22authorized, distributed, or granted by a third party with the understanding that the third party
148	148	5.23will reimburse any seller to whom the coupon, certificate, or documentation is presented;
149	149	5.24 (ii) the purchaser identifies himself or herself to the seller as a member of a group or
150	150	5.25organization entitled to a price reduction or discount. A "preferred customer" card that is
151	151	5.26available to any customer does not constitute membership in such a group; or
152	152	5.27 (iii) the price reduction or discount is identified as a third-party price reduction or discount
153	153	5.28on the invoice received by the purchaser or on a coupon, certificate, or other documentation
154	154	5.29presented by the purchaser.
155	155	5.30 EFFECTIVE DATE.This section is effective January 1, 2024.
156	156	5Sec. 7.
157	157	REVISOR EAP/AD 23-0201401/17/23