as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to tax administration; providing for 1.3 electronic filing and paying of taxes; amending 1.4 Minnesota Statutes 2000, sections 115B.24, subdivision 1.5 2; 270.271, subdivisions 1, 3; 270.771; 270.78; 1.6 287.12; 289A.02, by adding a subdivision; 289A.18, 1.7 subdivision 4; 289A.20, subdivisions 1, 2, 4; 289A.26, 1.8 subdivision 2a; 289A.60, subdivision 21; 295.55, 1.9 subdivision 4; 296A.15, subdivision 7; 297E.02, 1.10 subdivision 4; 297F.09, subdivision 7; 297G.09, 1.11 subdivision 6; 297I.35, subdivision 2; 297I.85, 1.12 subdivision 7; 473.843, subdivision 3. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 2000, section 115B.24, 1.15 subdivision 2, is amended to read: 1.16 Subd. 2. [DECLARATIONS OF ESTIMATED TAX.]For 1983, every1.17generator of hazardous waste required to pay a tax pursuant to1.18section 115B.22 shall make a declaration of estimated hazardous1.19waste generated for the last six months of calendar year 1983 if1.20the tax can reasonably be estimated to exceed $500. The1.21declaration of the estimated tax shall be filed by October 15,1.221983. The amount of estimated tax with respect to which a1.23declaration is required shall be paid in two equal installments1.24by October 15, 1983 and January 15, 1984.For 1984 and 1.25 subsequent years, every generator of hazardous waste required to 1.26 pay a tax pursuant to section 115B.22 shall make a declaration 1.27 of estimated hazardous waste generated for the calendar year if 1.28 the tax can reasonably be expected to be in excess of $1,000. 1.29 The declaration of estimated tax shall be filed by March 15. 2.1 The amount of estimated tax with respect to which a declaration 2.2 is required shall be paid in four equal installments on or 2.3 before the 15th day of March, June, September, and December. 2.4 An amendment of a declaration may be filed in any interval 2.5 between installment dates prescribed above but only one 2.6 amendment may be filed in each interval. If an amendment of a 2.7 declaration is filed, the amount of each remaining installment 2.8 shall be the amount which would have been payable if the new 2.9 estimate had been made when the first estimate for the calendar 2.10 year was made, increased or decreased, as the case may be, by 2.11 the amount computed by dividing 2.12 (1) the difference between (A) the amount of estimated tax 2.13 required to be paid before the date on which the amendment was 2.14 made, and (B) the amount of estimated tax which would have been 2.15 required to be paid before that date if the new estimate had 2.16 been made when the first estimate was made, by 2.17 (2) the number of installments remaining to be paid on or 2.18 after the date on which the amendment is made. 2.19 The commissioner of revenue may grant a reasonable 2.20 extension of time for filing any declaration but the extension 2.21 shall not be for more than six months. 2.22 If the aggregate amount of estimated tax payments made 2.23 during a fiscal year ending June 30 is equal to or exceeds 2.24 $80,000, all estimated tax payments in the subsequent calendar 2.25 year must be paid by electronic meansof a funds transfer as2.26defined in section 336.4A-104, paragraph (a). The funds2.27transfer payment date, as defined in section 336.4A-401, must be2.28on or before the date the estimated tax payment is due. If the2.29date the estimated tax payment is due is not a funds transfer2.30business day, as defined in section 336.4A-105, paragraph (a),2.31clause (4), the payment date must be on or before the funds2.32transfer business day next following the date the estimated tax2.33payment is due. 2.34 [EFFECTIVE DATE.] This section is effective the day 2.35 following final enactment. 2.36 Sec. 2. Minnesota Statutes 2000, section 270.271, 3.1 subdivision 1, is amended to read: 3.2 Subdivision 1. [DATE OF DELIVERY.] When a document, 3.3 including a return, claim, or statement, is required to be 3.4 filed, or a payment is required to be made to the commissioner 3.5 within a prescribed period, or on or before a prescribed date, 3.6 and if the document or payment is delivered by electronic means 3.7 or by United States mail after the period or the date to the 3.8 place prescribed for filing or payment, then the date of 3.9 delivery or of payment is the date of the confirmation 3.10 time-and-date stamp of the transaction, if delivered by 3.11 electronic means, or the date of the United States postmark 3.12 stamped on the cover in which the document or payment is mailed, 3.13 if delivered by United States mailshall be considered the date3.14of delivery or of payment, as the case may be. 3.15 [EFFECTIVE DATE.] This section is effective for returns and 3.16 payments due on or after July 1, 2001. 3.17 Sec. 3. Minnesota Statutes 2000, section 270.271, 3.18 subdivision 3, is amended to read: 3.19 Subd. 3. [CONFIRMATION OF ELECTRONIC FILING AND PAYMENT 3.20 AND UNITED STATES POSTAL SERVICE POSTMARK.] The confirmation 3.21 numbers and confirmation time-and-date stamps received by the 3.22 taxpayer following electronic payment or filing is proof of the 3.23 payment authorization and filing dates. Only the postmark of 3.24 the United States Postal Service, rather than those of private 3.25 postage meters, qualifies as proof of timely mailing under this 3.26 section. If the document or payment is sent by United States 3.27 registered mail, the date of registration shall be treated as 3.28 the postmark date. If the document or payment is sent by United 3.29 States certified mail and the sender's receipt is postmarked by 3.30 the postal employee to whom the envelope containing such 3.31 document or payment is presented, the date of the United States 3.32 postmark on the receipt shall be treated as the postmark date of 3.33 the document or payment. 3.34 [EFFECTIVE DATE.] This section is effective for returns and 3.35 payments due on or after July 1, 2001. 3.36 Sec. 4. Minnesota Statutes 2000, section 270.771, is 4.1 amended to read: 4.2 270.771 [PAYMENTS REQUIRED TO BE MADEBY ELECTRONIC FUNDS4.3TRANSFERELECTRONICALLY.] 4.4 (a) If a taxpayer is required to make payment of a tax to 4.5 the commissioner by electronic meansof electronic funds4.6transfer as defined in section 336.4A-104, paragraph (a), the 4.7 taxpayer shall make all payments of all taxes and fees paid to 4.8 the commissioner by electronic meansof electronic funds4.9transfer. 4.10 (b) Paragraph (a) does not apply to payments required to be 4.11 made for individual income taxes under section 289A.20, 4.12 subdivision 1, paragraph (a), or 289A.25. 4.13 [EFFECTIVE DATE.] This section is effective the day 4.14 following final enactment. 4.15 Sec. 5. Minnesota Statutes 2000, section 270.78, is 4.16 amended to read: 4.17 270.78 [PENALTY FOR FAILURE TOMAKE PAYMENT BY ELECTRONIC4.18FUNDS TRANSFERPAY ELECTRONICALLY.] 4.19 In addition to other applicable penalties imposed by law, 4.20 after notification from the commissioner of revenue to the 4.21 taxpayer that payments for a tax administered by the 4.22 commissioner are required to be made by electronic meansof4.23electronic funds transfer, and the payments are remitted by some 4.24 other means, there is a penalty in the amount of five percent of 4.25 each payment that should have been remitted electronically. 4.26 After the commissioner's initial notification to the taxpayer 4.27 that payments are required to be made by electronic means, the 4.28 commissioner is not required to notify the taxpayer in 4.29 subsequent periods if the initial notification specified the 4.30 amount of tax liability at which a taxpayer is required to remit 4.31 payments by electronic means. The penalty can be abated under 4.32 the abatement procedures prescribed in section 270.07, 4.33 subdivision 6, if the failure to remit the payment 4.34 electronically is due to reasonable cause. The penalty bears 4.35 interest at the rate specified in section 270.75 from the due 4.36 date of the payment of the tax to the date of payment of the 5.1 penalty. 5.2 [EFFECTIVE DATE.] This section is effective the day 5.3 following final enactment. 5.4 Sec. 6. Minnesota Statutes 2000, section 287.12, is 5.5 amended to read: 5.6 287.12 [TAXES, HOW APPORTIONED.] 5.7 (a) All taxes paid to the county treasurer under the 5.8 provisions of sections 287.01 to 287.12 must be apportioned, 97 5.9 percent to the general fund of the state, and three percent to 5.10 the county revenue fund. 5.11 (b) On or before the 20th day of each month the county 5.12 treasurer shall determine and pay to the commissioner of revenue 5.13 for deposit in the state treasury and credit to the general fund 5.14 the state's portion of the receipts from the mortgage registry 5.15 tax during the preceding month subject to the electronicfunds5.16transferpayment requirements of section 270.771. The county 5.17 treasurer shall provide any related reports requested by the 5.18 commissioner of revenue. 5.19 [EFFECTIVE DATE.] This section is effective the day 5.20 following final enactment. 5.21 Sec. 7. Minnesota Statutes 2000, section 289A.02, is 5.22 amended by adding a subdivision to read: 5.23 Subd. 8. [ELECTRONIC MEANS.] "Electronic means" refers to 5.24 a method that is electronic, as defined in section 325L.02, 5.25 paragraph (e), and that is prescribed by the commissioner. 5.26 [EFFECTIVE DATE.] This section is effective the day 5.27 following final enactment. 5.28 Sec. 8. Minnesota Statutes 2000, section 289A.18, 5.29 subdivision 4, is amended to read: 5.30 Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use 5.31 tax returns must be filed on or before the 20th day of the month 5.32 following the close of the preceding reporting period, except 5.33 that annual use tax returns provided for under section 289A.11, 5.34 subdivision 1, must be filed by April 15 following the close of 5.35 the calendar year, in the case of individuals. Annual use tax 5.36 returns of businesses, including sole proprietorships, and 6.1 annual sales tax returns must be filed by February 5 following 6.2 the close of the calendar year. 6.3 (b)Except for the return for the June reporting period,6.4which is due on the following August 25,Returns for the June 6.5 reporting period filed by retailers required to remit 6.6liabilities by means of funds transfertheir June liability 6.7 under section 289A.20, subdivision 4, paragraph(d)(b), are due 6.8 on or beforethe 25th day of the month following the close of6.9the preceding reporting periodAugust 20. 6.10 (c) If a retailer has an average sales and use tax 6.11 liability, including local sales and use taxes administered by 6.12 the commissioner, equal to or less than $500 per month in any 6.13 quarter of a calendar year, and has substantially complied with 6.14 the tax laws during the preceding four calendar quarters, the 6.15 retailer may request authorization to file and pay the taxes 6.16 quarterly in subsequent calendar quarters. The authorization 6.17 remains in effect during the period in which the retailer's 6.18 quarterly returns reflect sales and use tax liabilities of less 6.19 than $1,500 and there is continued compliance with state tax 6.20 laws. 6.21 (d) If a retailer has an average sales and use tax 6.22 liability, including local sales and use taxes administered by 6.23 the commissioner, equal to or less than $100 per month during a 6.24 calendar year, and has substantially complied with the tax laws 6.25 during that period, the retailer may request authorization to 6.26 file and pay the taxes annually in subsequent years. The 6.27 authorization remains in effect during the period in which the 6.28 retailer's annual returns reflect sales and use tax liabilities 6.29 of less than $1,200 and there is continued compliance with state 6.30 tax laws. 6.31 (e) The commissioner may also grant quarterly or annual 6.32 filing and payment authorizations to retailers if the 6.33 commissioner concludes that the retailers' future tax 6.34 liabilities will be less than the monthly totals identified in 6.35 paragraphs (c) and (d). An authorization granted under this 6.36 paragraph is subject to the same conditions as an authorization 7.1 granted under paragraphs (c) and (d). 7.2 (f) A taxpayer who is a materials supplier may report gross 7.3 receipts either on: 7.4 (1) the cash basis as the consideration is received; or 7.5 (2) the accrual basis as sales are made. 7.6 As used in this paragraph, "materials supplier" means a person 7.7 who provides materials for the improvement of real property; who 7.8 is primarily engaged in the sale of lumber and building 7.9 materials-related products to owners, contractors, 7.10 subcontractors, repairers, or consumers; who is authorized to 7.11 file a mechanics lien upon real property and improvements under 7.12 chapter 514; and who files with the commissioner an election to 7.13 file sales and use tax returns on the basis of this paragraph. 7.14 [EFFECTIVE DATE.] This section is effective for returns due 7.15 on or after July 1, 2001. 7.16 Sec. 9. Minnesota Statutes 2000, section 289A.20, 7.17 subdivision 1, is amended to read: 7.18 Subdivision 1. [INDIVIDUAL INCOME, FIDUCIARY INCOME, 7.19 MINING COMPANY, CORPORATE FRANCHISE, AND ENTERTAINMENT TAXES.] 7.20 (a) Individual income, fiduciary, mining company, and corporate 7.21 franchise taxes must be paid to the commissioner on or before 7.22 the date the return must be filed under section 289A.18, 7.23 subdivision 1, or the extended due date as provided in section 7.24 289A.19, unless an earlier date for payment is provided. 7.25 Notwithstanding any other law, a taxpayer whose unpaid 7.26 liability for income or corporate franchise taxes, as reflected 7.27 upon the return, is $1 or less need not pay the tax. 7.28 (b) Entertainment taxes must be paid on or before the date 7.29 the return must be filed under section 289A.18, subdivision 1. 7.30 (c) If a fiduciary administers 100 or more trusts, 7.31 fiduciary income taxes for all trusts administered by the 7.32 fiduciary must be paid byfunds transfer as defined in section7.33336.4A-104, paragraph (a). The funds transfer payment date, as7.34defined in section 336.4A-401, must be on or before the date the7.35tax payment is due. If the date the payment is due is not a7.36funds transfer business day, as defined in section 336.4A-105,8.1paragraph (a), clause (4), the payment date must be on or before8.2the funds transfer business day next following the date the8.3payment is dueelectronic means. 8.4 [EFFECTIVE DATE.] This section is effective the day 8.5 following final enactment. 8.6 Sec. 10. Minnesota Statutes 2000, section 289A.20, 8.7 subdivision 2, is amended to read: 8.8 Subd. 2. [WITHHOLDING FROM WAGES, ENTERTAINER WITHHOLDING, 8.9 WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, AND 8.10 WITHHOLDING BY PARTNERSHIPS AND SMALL BUSINESS CORPORATIONS.] 8.11 (a) A tax required to be deducted and withheld during the 8.12 quarterly period must be paid on or before the last day of the 8.13 month following the close of the quarterly period, unless an 8.14 earlier time for payment is provided. A tax required to be 8.15 deducted and withheld from compensation of an entertainer and 8.16 from a payment to an out-of-state contractor must be paid on or 8.17 before the date the return for such tax must be filed under 8.18 section 289A.18, subdivision 2. Taxes required to be deducted 8.19 and withheld by partnerships and S corporations must be paid on 8.20 or before the date the return must be filed under section 8.21 289A.18, subdivision 2. 8.22 (b) An employer who, during the previous quarter, withheld 8.23 more than $1,500 of tax under section 290.92, subdivision 2a or 8.24 3, or 290.923, subdivision 2, must deposit tax withheld under 8.25 those sections with the commissioner within the time allowed to 8.26 deposit the employer's federal withheld employment taxes under 8.27 Treasury Regulation, section 31.6302-1, without regard to the 8.28 safe harbor or de minimis rules in subparagraph (f) or the 8.29 one-day rule in subsection (c), clause (3). Taxpayers must 8.30 submit a copy of their federal notice of deposit status to the 8.31 commissioner upon request by the commissioner. 8.32 (c) The commissioner may prescribe by rule other return 8.33 periods or deposit requirements. In prescribing the reporting 8.34 period, the commissioner may classify payors according to the 8.35 amount of their tax liability and may adopt an appropriate 8.36 reporting period for the class that the commissioner judges to 9.1 be consistent with efficient tax collection. In no event will 9.2 the duration of the reporting period be more than one year. 9.3 (d) If less than the correct amount of tax is paid to the 9.4 commissioner, proper adjustments with respect to both the tax 9.5 and the amount to be deducted must be made, without interest, in 9.6 the manner and at the times the commissioner prescribes. If the 9.7 underpayment cannot be adjusted, the amount of the underpayment 9.8 will be assessed and collected in the manner and at the times 9.9 the commissioner prescribes. 9.10 (e) If the aggregate amount of the tax withheld during a 9.11 fiscal year ending June 30 under section 290.92, subdivision 2a 9.12 or 3, is equal to or exceeds the amounts established for 9.13 remitting federal withheld taxes pursuant to the regulations 9.14 promulgated under section 6302(h) of the Internal Revenue Code, 9.15 the employer must remit each required deposit for wages paid in 9.16 the subsequent calendar year by electronic meansof a funds9.17transfer as defined in section 336.4A-104, paragraph (a). The9.18funds transfer payment date, as defined in section 336.4A-401,9.19must be on or before the date the deposit is due. If the date9.20the deposit is due is not a funds transfer business day, as9.21defined in section 336.4A-105, paragraph (a), clause (4), the9.22payment date must be on or before the funds transfer business9.23day next following the date the deposit is due. 9.24 (f) A third-party bulk filer as defined in section 290.92, 9.25 subdivision 30, paragraph (a), clause (2), who remits 9.26 withholding deposits must remit all deposits by electronic means 9.27of a funds transferas provided in paragraph (e), regardless of 9.28 the aggregate amount of tax withheld during a fiscal year for 9.29 all of the employers. 9.30 [EFFECTIVE DATE.] This section is effective the day 9.31 following final enactment. 9.32 Sec. 11. Minnesota Statutes 2000, section 289A.20, 9.33 subdivision 4, is amended to read: 9.34 Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by 9.35 chapter 297A are due and payable to the commissioner monthly on 9.36 or before the 20th day of the month following the month in which 10.1 the taxable event occurred, or following another reporting 10.2 period as the commissioner prescribes or as allowed under 10.3 section 289A.18, subdivision 4, paragraph (f), except that use 10.4 taxes due on an annual use tax return as provided under section 10.5 289A.11, subdivision 1, are payable by April 15 following the 10.6 close of the calendar year. 10.7 (b) A vendor having a liability of $120,000 or more during 10.8 a fiscal year ending June 30 must remit the June liability for 10.9 the next year in the following manner: 10.10 (1) Two business days before June 30 of the year, the 10.11 vendor must remit 62 percent of the estimated June liability to 10.12 the commissioner. 10.13 (2) On or before August1420 of the year, the vendor must 10.14 pay any additional amount of tax not remitted in June. 10.15 (c) A vendor having a liability of $120,000 or more during 10.16 a fiscal year ending June 30 must remit all liabilities on 10.17 returns due for periods beginning in the subsequent calendar 10.18 year by electronic meansof a funds transfer as defined in10.19section 336.4A-104, paragraph (a). The funds transfer payment10.20date, as defined in section 336.4A-401, must beon or before the 10.2114th20th day of the month following the month in which the 10.22 taxable event occurred, or on or before the14th20th day of the 10.23 month following the month in which the sale is reported under 10.24 section 289A.18, subdivision 4, except for 62 percent of the 10.25 estimated June liability, which is due two business days before 10.26 June 30. The remaining amount of the June liability is due on 10.27 August1420.If the date the tax is due is not a funds10.28transfer business day, as defined in section 336.4A-105,10.29paragraph (a), clause (4), the payment date must be on or before10.30the funds transfer business day next following the date the tax10.31is due.10.32(d) If the vendor required to remit by electronic funds10.33transfer as provided in paragraph (c) is unable due to10.34reasonable cause to determine the actual sales and use tax due10.35on or before the due date for payment, the vendor may remit an10.36estimate of the tax owed using one of the following options:11.1(1) 100 percent of the tax reported on the previous month's11.2sales and use tax return;11.3(2) 100 percent of the tax reported on the sales and use11.4tax return for the same month in the previous calendar year; or11.5(3) 95 percent of the actual tax due.11.6Any additional amount of tax that is not remitted on or11.7before the due date for payment, must be remitted with the11.8return. If a vendor fails to remit the actual liability or does11.9not remit using one of the estimate options by the due date for11.10payment, the vendor must remit actual liability as provided in11.11paragraph (c) in all subsequent periods. This paragraph does11.12not apply to the June sales and use tax liability.11.13 [EFFECTIVE DATE.] This section is effective for payments 11.14 due on or after July 1, 2001. 11.15 Sec. 12. Minnesota Statutes 2000, section 289A.26, 11.16 subdivision 2a, is amended to read: 11.17 Subd. 2a. [ELECTRONICFUNDS TRANSFERPAYMENTS.] If the 11.18 aggregate amount of estimated tax payments made during a 11.19 calendar year is equal to or exceeds $20,000, all estimated tax 11.20 payments in the subsequent calendar year must be paid 11.21 by electronic meansof a funds transfer as defined in section11.22336.4A-104, paragraph (a). The funds transfer payment date, as11.23defined in section 336.4A-401, must be on or before the date the11.24estimated tax payment is due. If the date the estimated tax11.25payment is due is not a funds transfer business day, as defined11.26in section 336.4A-105, paragraph (a), clause (4), the payment11.27date must be on or before the funds transfer business day next11.28following the date the estimated tax payment is due. 11.29 [EFFECTIVE DATE.] This section is effective the day 11.30 following final enactment. 11.31 Sec. 13. Minnesota Statutes 2000, section 289A.60, 11.32 subdivision 21, is amended to read: 11.33 Subd. 21. [PENALTY FOR FAILURE TO MAKE PAYMENT BY 11.34 ELECTRONICFUNDS TRANSFERMEANS.] In addition to other 11.35 applicable penalties imposed by this section, after notification 11.36 from the commissioner to the taxpayer that payments are required 12.1 to be made by electronic meansof electronic funds transfer12.2 under section 289A.20, subdivision 2, paragraph (e), or 4, 12.3 paragraph(d)(c), or 289A.26, subdivision 2a, and the payments 12.4 are remitted by some other means, there is a penalty in the 12.5 amount of five percent of each payment that should have been 12.6 remitted electronically. After the commissioner's initial 12.7 notification to the taxpayer that payments are required to be 12.8 made by electronic means, the commissioner is not required to 12.9 notify the taxpayer in subsequent periods if the initial 12.10 notification specified the amount of tax liability at which a 12.11 taxpayer is required to remit payments by electronic means. The 12.12 penalty can be abated under the abatement procedures prescribed 12.13 in section 270.07, subdivision 6, if the failure to remit the 12.14 payment electronically is due to reasonable cause. 12.15 [EFFECTIVE DATE.] This section is effective the day 12.16 following final enactment. 12.17 Sec. 14. Minnesota Statutes 2000, section 295.55, 12.18 subdivision 4, is amended to read: 12.19 Subd. 4. [ELECTRONICFUNDS TRANSFERPAYMENTS.] A taxpayer 12.20 with an aggregate tax liability of $120,000 or more during a 12.21 fiscal year ending June 30,must remit all liabilities by 12.22 electronic meansof a funds transfer as defined in section12.23336.4A-104, paragraph (a),in the subsequent calendar year.The12.24funds transfer payment date, as defined in section 336.4A-401,12.25is on or before the date the tax is due. If the date the tax is12.26due is not a funds-transfer business day, as defined in section12.27336.4A-105, paragraph (a), clause (4), the payment date is on or12.28before the first funds-transfer business day after the date the12.29tax is due.12.30 [EFFECTIVE DATE.] This section is effective the day 12.31 following final enactment. 12.32 Sec. 15. Minnesota Statutes 2000, section 296A.15, 12.33 subdivision 7, is amended to read: 12.34 Subd. 7. [ELECTRONICFUNDS TRANSFERPAYMENT REQUIRED.] All 12.35 remittances must be made by electronic meansof electronic funds12.36transfer as defined in section 336.4A-104, paragraph (a). The13.1funds transfer payment date, as defined in section 336.4A-401,13.2must be on or before the date the remittance is due. If the13.3date the remittance is due is not a funds transfer business day,13.4as defined in section 336.4A-105, paragraph (a), clause (4), the13.5payment date must be on or before the funds transfer business13.6day next following the date the remittance is due. 13.7 [EFFECTIVE DATE.] This section is effective the day 13.8 following final enactment. 13.9 Sec. 16. Minnesota Statutes 2000, section 297E.02, 13.10 subdivision 4, is amended to read: 13.11 Subd. 4. [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed 13.12 on the sale of each deal of pull-tabs and tipboards sold by a 13.13 distributor. The rate of the tax is 1.7 percent of the ideal 13.14 gross of the pull-tab or tipboard deal. The sales tax imposed 13.15 by chapter 297A on the sale of the pull-tabs and tipboards by 13.16 the distributor is imposed on the retail sales price less the 13.17 tax imposed by this subdivision. The retail sale of pull-tabs 13.18 or tipboards by the organization is exempt from taxes imposed by 13.19 chapter 297A and is exempt from all local taxes and license fees 13.20 except a fee authorized under section 349.16, subdivision 8. 13.21 (b) The liability for the tax imposed by this section is 13.22 incurred when the pull-tabs and tipboards are delivered by the 13.23 distributor to the customer or to a common or contract carrier 13.24 for delivery to the customer, or when received by the customer's 13.25 authorized representative at the distributor's place of 13.26 business, regardless of the distributor's method of accounting 13.27 or the terms of the sale. 13.28 The tax imposed by this subdivision is imposed on all sales 13.29 of pull-tabs and tipboards, except the following: 13.30 (1) sales to the governing body of an Indian tribal 13.31 organization for use on an Indian reservation; 13.32 (2) sales to distributors licensed under the laws of 13.33 another state or of a province of Canada, as long as all 13.34 statutory and regulatory requirements are met in the other state 13.35 or province; 13.36 (3) sales of promotional tickets as defined in section 14.1 349.12; and 14.2 (4) pull-tabs and tipboards sold to an organization that 14.3 sells pull-tabs and tipboards under the exemption from licensing 14.4 in section 349.166, subdivision 2. A distributor shall require 14.5 an organization conducting exempt gambling to show proof of its 14.6 exempt status before making a tax-exempt sale of pull-tabs or 14.7 tipboards to the organization. A distributor shall identify, on 14.8 all reports submitted to the commissioner, all sales of 14.9 pull-tabs and tipboards that are exempt from tax under this 14.10 subdivision. 14.11 (c) A distributor having a liability of $120,000 or more 14.12 during a fiscal year ending June 30 must remit all liabilities 14.13 in the subsequent calendar year bya funds transfer as defined14.14in section 336.4A-104, paragraph (a). The funds transfer14.15payment date, as defined in section 336.4A-401, must be on or14.16before the date the tax is due. If the date the tax is due is14.17not a funds transfer business day, as defined in section14.18336.4A-105, paragraph (a), clause (4), the payment date must be14.19on or before the funds transfer business day next following the14.20date the tax is dueelectronic means. 14.21 (d) Any customer who purchases deals of pull-tabs or 14.22 tipboards from a distributor may file an annual claim for a 14.23 refund or credit of taxes paid pursuant to this subdivision for 14.24 unsold pull-tab and tipboard tickets. The claim must be filed 14.25 with the commissioner on a form prescribed by the commissioner 14.26 by March 20 of the year following the calendar year for which 14.27 the refund is claimed. The refund must be filed as part of the 14.28 customer's February monthly return. The refund or credit is 14.29 equal to 1.7 percent of the face value of the unsold pull-tab or 14.30 tipboard tickets, provided that the refund or credit will be 14.31 1.75 percent of the face value of the unsold pull-tab or 14.32 tipboard tickets for claims for a refund or credit of taxes 14.33 filed on the February 2001 monthly return. The refund claimed 14.34 will be applied as a credit against tax owing under this chapter 14.35 on the February monthly return. If the refund claimed exceeds 14.36 the tax owing on the February monthly return, that amount will 15.1 be refunded. The amount refunded will bear interest pursuant to 15.2 section 270.76 from 90 days after the claim is filed. 15.3 [EFFECTIVE DATE.] This section is effective the day 15.4 following final enactment. 15.5 Sec. 17. Minnesota Statutes 2000, section 297F.09, 15.6 subdivision 7, is amended to read: 15.7 Subd. 7. [ELECTRONICFUNDS TRANSFERPAYMENT.] A cigarette 15.8 or tobacco products distributor having a liability of $120,000 15.9 or more during a fiscal year ending June 30 must remit all 15.10 liabilities in the subsequent calendar year by electronic means 15.11of a fund transfer as defined in section 336.4A-104, paragraph15.12(a). The funds transfer payment date, as defined in section15.13336.4A-401, must be on or before the date the tax is due. If15.14the date the tax is due is not a funds transfer business day, as15.15defined in section 336.4A-105, paragraph (a), clause (4), the15.16payment date must be on or before the funds transfer day15.17immediately following the date the tax is due. 15.18 [EFFECTIVE DATE.] This section is effective the day 15.19 following final enactment. 15.20 Sec. 18. Minnesota Statutes 2000, section 297G.09, 15.21 subdivision 6, is amended to read: 15.22 Subd. 6. [ELECTRONICFUNDS TRANSFERPAYMENTS.] A licensed 15.23 brewer, importer, or wholesaler having an excise tax liability 15.24 of $120,000 or more during a fiscal year ending June 30 must 15.25 remit all excise tax liabilities in the subsequent calendar year 15.26 by electronic meansof a funds transfer as defined in section15.27336.4A-104, paragraph (a). The funds transfer payment date, as15.28defined in section 336.4A-401, must be on or before the date the15.29excise tax is due. If the date the excise tax is due is not a15.30funds transfer business day, as defined in section 336.4A-105,15.31paragraph (a), clause (4), the payment date must be on or before15.32the funds transfer business day next following the date the15.33excise tax is due. 15.34 [EFFECTIVE DATE.] This section is effective the day 15.35 following final enactment. 15.36 Sec. 19. Minnesota Statutes 2000, section 297I.35, 16.1 subdivision 2, is amended to read: 16.2 Subd. 2. [ELECTRONICFUNDS TRANSFERPAYMENTS.] If the 16.3 aggregate amount of tax and surcharges due under this chapter 16.4 during a calendar year is equal to or exceeds $120,000, or if 16.5 the taxpayer is required to make payment of any other tax to the 16.6 commissioner by electronic meansof electronic funds transfer as16.7defined in section 336.4A-104, paragraph (a), then all tax and 16.8 surcharge payments in the subsequent calendar year must be paid 16.9 by electronic meansof a funds transfer as defined in section16.10336.4A-104, paragraph (a). The funds transfer payment date, as16.11defined in section 336.4A-104, must be on or before the date the16.12payment is due. If the date the payment is due is not a funds16.13transfer business day, as defined in section 336.4A-105,16.14paragraph (a), clause (4), the payment date must be on or before16.15the funds transfer business day next following the date the16.16payment is due. 16.17 [EFFECTIVE DATE.] This section is effective the day 16.18 following final enactment. 16.19 Sec. 20. Minnesota Statutes 2000, section 297I.85, 16.20 subdivision 7, is amended to read: 16.21 Subd. 7. [PENALTY FOR FAILURE TOMAKE PAYMENT BY16.22ELECTRONIC FUNDS TRANSFERPAY ELECTRONICALLY.] In addition to 16.23 other applicable penalties imposed by this section, if the 16.24 commissioner notifies the taxpayer that payments are required to 16.25 be made by electronic meansof electronic funds transfer, and 16.26 the payments are made by some other means, a penalty is 16.27 imposed. The amount of the penalty is equal to five percent of 16.28 each payment that should have been paid electronically. The 16.29 penalty may be abated under the abatement procedures prescribed 16.30 in section 270.07, subdivision 6, if the failure to pay 16.31 electronically is due to reasonable cause. 16.32 [EFFECTIVE DATE.] This section is effective the day 16.33 following final enactment. 16.34 Sec. 21. Minnesota Statutes 2000, section 473.843, 16.35 subdivision 3, is amended to read: 16.36 Subd. 3. [PAYMENT OF FEE.] On or before the 20th day of 17.1 each month each operator shall pay the fee due under this 17.2 section for the previous month, using a form provided by the 17.3 commissioner of revenue. 17.4 An operator having a fee of $120,000 or more during a 17.5 fiscal year ending June 30 must pay all fees in the subsequent 17.6 calendar year by electronic meansof a funds transfer as defined17.7in section 336.4A-104, paragraph (a). The funds transfer17.8payment date, as defined in section 336.4A-401, must be on or17.9before the date the fee is due. If the date the fee is due is17.10not a funds transfer business day, as defined in section17.11336.4A-105, paragraph (a), clause (4), the payment date must be17.12on or before the funds transfer business day next following the17.13date the fee is due. 17.14 [EFFECTIVE DATE.] This section is effective the day 17.15 following final enactment.