1.1                          A bill for an act
  1.2             relating to taxes; use tax; expanding the de minimis 
  1.3             exemption for the use tax; amending Minnesota Statutes 
  1.4             1996, section 297A.14, subdivision 4. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 297A.14, 
  1.7   subdivision 4, is amended to read: 
  1.8      Subd. 4.  [DE MINIMIS EXEMPTION.] Purchases subject to use 
  1.9   tax under this section are exempt if (1) the purchase is made by 
  1.10  an individual for personal use, and (2) the total amount of 
  1.11  purchases made by a person, that are subject to the use tax, do 
  1.12  not exceed $770 in the calendar year.  For purposes of this 
  1.13  subdivision, "personal use" includes purchases for gifts.  If an 
  1.14  individual a person makes purchases, which are subject to use 
  1.15  tax, of more than $770 in the calendar year the individual they 
  1.16  must pay the use tax on the entire amount. 
  1.17     Sec. 2.  [EFFECTIVE DATE.] 
  1.18     Section 1 is effective for purchases made after December 
  1.19  31, 1997.