1.1 	A bill for an act
1.2 	relating to local sales taxes; providing a de minimus
1.3 	exemption for certain goods; amending Minnesota
1.4 	Statutes 2004, section 297A.99, by adding a
1.5 	subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 297A.99, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 6a.De minimis exemption. A purchase subject to
1.10 	use tax under subdivision 6 is exempt if (1) the purchase is
1.11 	made by an individual for personal use, and (2) the total sales
1.12 	price of the taxable good or service purchased does not exceed
1.13 	$1,000.  For purposes of this subdivision, "personal use"
1.14 	includes purchases for gifts.  If an individual purchases a good
1.15 	or service subject to use tax that has a sales price of more
1.16 	than $1,000, the individual must pay the use tax on the entire
1.17 	amount.  This exemption does not apply to purchases made from
1.18 	retailers who are required to collect the local sales tax for
1.19 	the political subdivision.
1.20 	
EFFECTIVE DATE. This section is effective for purchases
1.21 	made after July 1, 2005, and applies to all local sales taxes
1.22 	that were authorized before, on, or after July 1, 2005.