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, every~~ 
  1.17  ~~generator of hazardous waste required to pay a tax pursuant to~~ 
  1.18  ~~section 115B.22 shall make a declaration of estimated hazardous~~ 
  1.19  ~~waste generated for the last six months of calendar year 1983 if~~ 
  1.20  ~~the tax can reasonably be estimated to exceed $500.  The~~ 
  1.21  ~~declaration of the estimated tax shall be filed by October 15,~~ 
  1.22  ~~1983.  The amount of estimated tax with respect to which a~~ 
  1.23  ~~declaration is required shall be paid in two equal installments~~ 
  1.24  ~~by 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 means ~~of a funds transfer as~~ 
  2.26  ~~defined in section 336.4A-104, paragraph (a).  The funds~~ 
  2.27  ~~transfer payment date, as defined in section 336.4A-401, must be~~ 
  2.28  ~~on or before the date the estimated tax payment is due.  If the~~ 
  2.29  ~~date the estimated tax payment is due is not a funds transfer~~ 
  2.30  ~~business day, as defined in section 336.4A-105, paragraph (a),~~ 
  2.31  ~~clause (4), the payment date must be on or before the funds~~ 
  2.32  ~~transfer business day next following the date the estimated tax~~ 
  2.33  ~~payment is due~~. 
  2.34     <b>[EFFECTIVE DATE.]</b> 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 mail ~~shall be considered the date~~ 
  3.14  ~~of delivery or of payment~~, as the case may be. 
  3.15     <b>[EFFECTIVE DATE.]</b> 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     <b>[EFFECTIVE DATE.]</b> 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 MADE ~~BY ELECTRONIC FUNDS~~ 
  4.3   ~~TRANSFER~~ ELECTRONICALLY.] 
  4.4      (a) If a taxpayer is required to make payment of a tax to 
  4.5   the commissioner by electronic means ~~of electronic funds~~ 
  4.6   ~~transfer 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 means ~~of electronic funds~~ 
  4.9   ~~transfer~~. 
  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     <b>[EFFECTIVE DATE.]</b> 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 TO ~~MAKE PAYMENT BY ELECTRONIC~~ 
  4.18  ~~FUNDS TRANSFER~~ PAY 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 means ~~of~~ 
  4.23  ~~electronic 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      <b>[EFFECTIVE DATE.]</b> 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 electronic ~~funds~~ 
  5.16  ~~transfer~~ payment 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     <b>[EFFECTIVE DATE.]</b> 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     <b>[EFFECTIVE DATE.]</b> 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,~~ 
  6.4   ~~which is due on the following August 25,~~ Returns for the June 
  6.5   reporting period filed by retailers required to remit 
  6.6   ~~liabilities by means of funds transfer~~ their June liability 
  6.7   under section 289A.20, subdivision 4, paragraph ~~(d)~~ (b), are due 
  6.8   on or before ~~the 25th day of the month following the close of~~ 
  6.9   ~~the preceding reporting period~~ August 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     <b>[EFFECTIVE DATE.]</b> 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 by ~~funds transfer as defined in section~~ 
  7.33  ~~336.4A-104, paragraph (a).  The funds transfer payment date, as~~ 
  7.34  ~~defined in section 336.4A-401, must be on or before the date the~~ 
  7.35  ~~tax payment is due.  If the date the payment is due is not a~~ 
  7.36  ~~funds transfer business day, as defined in section 336.4A-105,~~ 
  8.1   ~~paragraph (a), clause (4), the payment date must be on or before~~ 
  8.2   ~~the funds transfer business day next following the date the~~ 
  8.3   ~~payment is due~~ electronic means.  
  8.4      <b>[EFFECTIVE DATE.]</b> 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 means ~~of a funds~~ 
  9.17  ~~transfer as defined in section 336.4A-104, paragraph (a).  The~~ 
  9.18  ~~funds transfer payment date, as defined in section 336.4A-401,~~ 
  9.19  ~~must be on or before the date the deposit is due.  If the date~~ 
  9.20  ~~the deposit is due is not a funds transfer business day, as~~ 
  9.21  ~~defined in section 336.4A-105, paragraph (a), clause (4), the~~ 
  9.22  ~~payment date must be on or before the funds transfer business~~ 
  9.23  ~~day 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 
  9.27  ~~of a funds transfer~~ as 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     <b>[EFFECTIVE DATE.]</b> 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 August ~~14~~ 20 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 means ~~of a funds transfer as defined in~~ 
 10.19  ~~section 336.4A-104, paragraph (a).  The funds transfer payment~~ 
 10.20  ~~date, as defined in section 336.4A-401, must be~~ on or before the 
 10.21  ~~14th~~ 20th day of the month following the month in which the 
 10.22  taxable event occurred, or on or before the ~~14th~~ 20th 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  August ~~14~~ 20.  ~~If the date the tax is due is not a funds~~ 
 10.28  ~~transfer business day, as defined in section 336.4A-105,~~ 
 10.29  ~~paragraph (a), clause (4), the payment date must be on or before~~ 
 10.30  ~~the funds transfer business day next following the date the tax~~ 
 10.31  ~~is due.~~ 
 10.32     ~~(d) If the vendor required to remit by electronic funds~~ 
 10.33  ~~transfer as provided in paragraph (c) is unable due to~~ 
 10.34  ~~reasonable cause to determine the actual sales and use tax due~~ 
 10.35  ~~on or before the due date for payment, the vendor may remit an~~ 
 10.36  ~~estimate of the tax owed using one of the following options:~~ 
 11.1      ~~(1) 100 percent of the tax reported on the previous month's~~ 
 11.2   ~~sales and use tax return;~~ 
 11.3      ~~(2) 100 percent of the tax reported on the sales and use~~ 
 11.4   ~~tax return for the same month in the previous calendar year; or~~ 
 11.5      ~~(3) 95 percent of the actual tax due.~~ 
 11.6      ~~Any additional amount of tax that is not remitted on or~~ 
 11.7   ~~before the due date for payment, must be remitted with the~~ 
 11.8   ~~return.  If a vendor fails to remit the actual liability or does~~ 
 11.9   ~~not remit using one of the estimate options by the due date for~~ 
 11.10  ~~payment, the vendor must remit actual liability as provided in~~ 
 11.11  ~~paragraph (c) in all subsequent periods.  This paragraph does~~ 
 11.12  ~~not apply to the June sales and use tax liability.~~ 
 11.13     <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENTS.] 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 means ~~of a funds transfer as defined in section~~ 
 11.22  ~~336.4A-104, paragraph (a).  The funds transfer payment date, as~~ 
 11.23  ~~defined in section 336.4A-401, must be on or before the date the~~ 
 11.24  ~~estimated tax payment is due.  If the date the estimated tax~~ 
 11.25  ~~payment is due is not a funds transfer business day, as defined~~ 
 11.26  ~~in section 336.4A-105, paragraph (a), clause (4), the payment~~ 
 11.27  ~~date must be on or before the funds transfer business day next~~ 
 11.28  ~~following the date the estimated tax payment is due~~. 
 11.29     <b>[EFFECTIVE DATE.]</b> 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  ELECTRONIC ~~FUNDS TRANSFER~~ MEANS.] 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 means ~~of electronic funds transfer~~ 
 12.2   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     <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENTS.] 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 means ~~of a funds transfer as defined in section~~ 
 12.23  ~~336.4A-104, paragraph (a),~~ in the subsequent calendar year.  ~~The~~ 
 12.24  ~~funds transfer payment date, as defined in section 336.4A-401,~~ 
 12.25  ~~is on or before the date the tax is due.  If the date the tax is~~ 
 12.26  ~~due is not a funds-transfer business day, as defined in section~~ 
 12.27  ~~336.4A-105, paragraph (a), clause (4), the payment date is on or~~ 
 12.28  ~~before the first funds-transfer business day after the date the~~ 
 12.29  ~~tax is due.~~ 
 12.30     <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENT REQUIRED.] All 
 12.35  remittances must be made by electronic means ~~of electronic funds~~ 
 12.36  ~~transfer as defined in section 336.4A-104, paragraph (a).  The~~ 
 13.1   ~~funds transfer payment date, as defined in section 336.4A-401,~~ 
 13.2   ~~must be on or before the date the remittance is due.  If the~~ 
 13.3   ~~date the remittance is due is not a funds transfer business day,~~ 
 13.4   ~~as defined in section 336.4A-105, paragraph (a), clause (4), the~~ 
 13.5   ~~payment date must be on or before the funds transfer business~~ 
 13.6   ~~day next following the date the remittance is due~~.  
 13.7      <b>[EFFECTIVE DATE.]</b> 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 by ~~a funds transfer as defined~~ 
 14.14  ~~in section 336.4A-104, paragraph (a).  The funds transfer~~ 
 14.15  ~~payment date, as defined in section 336.4A-401, must be on or~~ 
 14.16  ~~before the date the tax is due.  If the date the tax is due is~~ 
 14.17  ~~not a funds transfer business day, as defined in section~~ 
 14.18  ~~336.4A-105, paragraph (a), clause (4), the payment date must be~~ 
 14.19  ~~on or before the funds transfer business day next following the~~ 
 14.20  ~~date the tax is due~~ electronic 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      <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENT.] 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 
 15.11  ~~of a fund transfer as defined in section 336.4A-104, paragraph~~ 
 15.12  ~~(a).  The funds transfer payment date, as defined in section~~ 
 15.13  ~~336.4A-401, must be on or before the date the tax is due.  If~~ 
 15.14  ~~the date the tax is due is not a funds transfer business day, as~~ 
 15.15  ~~defined in section 336.4A-105, paragraph (a), clause (4), the~~ 
 15.16  ~~payment date must be on or before the funds transfer day~~ 
 15.17  ~~immediately following the date the tax is due~~. 
 15.18     <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENTS.] 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 means ~~of a funds transfer as defined in section~~ 
 15.27  ~~336.4A-104, paragraph (a).  The funds transfer payment date, as~~ 
 15.28  ~~defined in section 336.4A-401, must be on or before the date the~~ 
 15.29  ~~excise tax is due.  If the date the excise tax is due is not a~~ 
 15.30  ~~funds transfer business day, as defined in section 336.4A-105,~~ 
 15.31  ~~paragraph (a), clause (4), the payment date must be on or before~~ 
 15.32  ~~the funds transfer business day next following the date the~~ 
 15.33  ~~excise tax is due~~. 
 15.34     <b>[EFFECTIVE DATE.]</b> 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.  [ELECTRONIC ~~FUNDS TRANSFER~~ PAYMENTS.] 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 means ~~of electronic funds transfer as~~ 
 16.7   ~~defined 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 means ~~of a funds transfer as defined in section~~ 
 16.10  ~~336.4A-104, paragraph (a).  The funds transfer payment date, as~~ 
 16.11  ~~defined in section 336.4A-104, must be on or before the date the~~ 
 16.12  ~~payment is due.  If the date the payment is due is not a funds~~ 
 16.13  ~~transfer business day, as defined in section 336.4A-105,~~ 
 16.14  ~~paragraph (a), clause (4), the payment date must be on or before~~ 
 16.15  ~~the funds transfer business day next following the date the~~ 
 16.16  ~~payment is due~~. 
 16.17     <b>[EFFECTIVE DATE.]</b> 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 TO ~~MAKE PAYMENT BY~~ 
 16.22  ~~ELECTRONIC FUNDS TRANSFER~~ PAY 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 means ~~of 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     <b>[EFFECTIVE DATE.]</b> 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 means ~~of a funds transfer as defined~~ 
 17.7   ~~in section 336.4A-104, paragraph (a).  The funds transfer~~ 
 17.8   ~~payment date, as defined in section 336.4A-401, must be on or~~ 
 17.9   ~~before the date the fee is due.  If the date the fee is due is~~ 
 17.10  ~~not a funds transfer business day, as defined in section~~ 
 17.11  ~~336.4A-105, paragraph (a), clause (4), the payment date must be~~ 
 17.12  ~~on or before the funds transfer business day next following the~~ 
 17.13  ~~date the fee is due~~. 
 17.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 17.15  following final enactment.