1.1 	A bill for an act
1.2 	relating to taxation; sales and use; eliminating accelerated payment requirements;
1.3 	amending Minnesota Statutes 2012, sections 289A.18, subdivision 4; 289A.60, 
1.4 	subdivision 21; Minnesota Statutes 2013 Supplement, section 289A.20, 
1.5 	subdivision 4; repealing Minnesota Statutes 2012, section 289A.60, subdivision 
1.6 	15.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2012, section 289A.18, subdivision 4, is amended to read:
1.9 		Subd. 4.Sales and use tax returns. (a) Sales and use tax returns must be filed on or 
1.10 	before the 20th day of the month following the close of the preceding reporting period, 
1.11 	except that annual use tax returns provided for under section 289A.11, subdivision 1, must 
1.12 	be filed by April 15 following the close of the calendar year, in the case of individuals. 
1.13 	Annual use tax returns of businesses, including sole proprietorships, and annual sales tax 
1.14 	returns must be filed by February 5 following the close of the calendar year.
1.15 	(b) Returns for the June reporting period filed by retailers required to remit their 
1.16 	June liability under section 289A.20, subdivision 4, paragraph (b), are due on or before 
1.17 	August 20.
1.18 	(c) (b) If a retailer has an average sales and use tax liability, including local sales and 
1.19 	use taxes administered by the commissioner, equal to or less than $500 per month in any 
1.20 	quarter of a calendar year, and has substantially complied with the tax laws during the 
1.21 	preceding four calendar quarters, the retailer may request authorization to file and pay the 
1.22 	taxes quarterly in subsequent calendar quarters. The authorization remains in effect during 
1.23 	the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less 
1.24 	than $1,500 and there is continued compliance with state tax laws.
2.1 	(d) (c) If a retailer has an average sales and use tax liability, including local sales and 
2.2 	use taxes administered by the commissioner, equal to or less than $100 per month during a 
2.3 	calendar year, and has substantially complied with the tax laws during that period, the 
2.4 	retailer may request authorization to file and pay the taxes annually in subsequent years. 
2.5 	The authorization remains in effect during the period in which the retailer's annual returns 
2.6 	reflect sales and use tax liabilities of less than $1,200 and there is continued compliance 
2.7 	with state tax laws.
2.8 	(e) (d) The commissioner may also grant quarterly or annual filing and payment 
2.9 	authorizations to retailers if the commissioner concludes that the retailers' future tax 
2.10 	liabilities will be less than the monthly totals identified in paragraphs (c) (b) and (d) (c). 
2.11 	An authorization granted under this paragraph is subject to the same conditions as an 
2.12 	authorization granted under paragraphs (c) (b) and (d) (c).
2.13 	(f) (e) A taxpayer who is a materials supplier may report gross receipts either on:
2.14 	(1) the cash basis as the consideration is received; or
2.15 	(2) the accrual basis as sales are made.
2.16 	As used in this paragraph, "materials supplier" means a person who provides materials 
2.17 	for the improvement of real property; who is primarily engaged in the sale of lumber and 
2.18 	building materials-related products to owners, contractors, subcontractors, repairers, 
2.19 	or consumers; who is authorized to file a mechanics lien upon real property and 
2.20 	improvements under chapter 514; and who files with the commissioner an election to file 
2.21 	sales and use tax returns on the basis of this paragraph.
2.22 	(g) (f) Notwithstanding paragraphs (a) to (f) (e), a seller that is not a Model 1, 2, or 
2.23 	3 seller, as those terms are used in the Streamlined Sales and Use Tax Agreement, that 
2.24 	does not have a legal requirement to register in Minnesota, and that is registered under the 
2.25 	agreement, must file a return by February 5 following the close of the calendar year in 
2.26 	which the seller initially registers, and must file subsequent returns on February 5 on an 
2.27 	annual basis in succeeding years. Additionally, a return must be submitted on or before 
2.28 	the 20th day of the month following any month by which sellers have accumulated state 
2.29 	and local tax funds for the state in the amount of $1,000 or more.

2.30 	EFFECTIVE DATE. This section is effective beginning with June 2014 tax 
2.31 	liabilities.

2.32 	Sec. 2. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is 
2.33 	amended to read:
3.1 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
3.2 	payable to the commissioner monthly on or before the 20th day of the month following the 
3.3 	month in which the taxable event occurred, or following another reporting period as the 
3.4 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
3.5 	 (e) or (g) (f), except that use taxes due on an annual use tax return as provided under section 
3.6 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
3.7 	(b) A vendor having a liability of $120,000 or more during a fiscal year ending June 
3.8 	30 must remit the June liability for the next year in the following manner:
3.9 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
3.10 	of the estimated June liability to the commissioner.
3.11 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
3.12 	of tax not remitted in June.
3.13 	(c) (b) A vendor having a liability of:
3.14 	(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 
3.15 	2013, and fiscal years thereafter, must remit by electronic means all liabilities on returns 
3.16 	due for periods beginning in all subsequent calendar years on or before the 20th day of 
3.17 	the month following the month in which the taxable event occurred, or on or before the 
3.18 	20th day of the month following the month in which the sale is reported under section 
3.19 	289A.18, subdivision 4; or.
3.20 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
3.21 	thereafter, must remit by electronic means all liabilities in the manner provided in 
3.22 	paragraph (a) on returns due for periods beginning in the subsequent calendar year, except 
3.23 	for 90 percent of the estimated June liability, which is due two business days before June 
3.24 	30. The remaining amount of the June liability is due on August 20.
3.25 	(d) (c) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
3.26 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
3.27 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
3.28 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
3.29 	person making payment by mail under this paragraph. The payment must be postmarked 
3.30 	at least two business days before the due date for making the payment in order to be 
3.31 	considered paid on a timely basis.

3.32 	EFFECTIVE DATE. This section is effective beginning with June 2014 tax 
3.33 	liabilities.

3.34 	Sec. 3. Minnesota Statutes 2012, section 289A.60, subdivision 21, is amended to read:
4.1 		Subd. 21.Penalty for failure to make payment by electronic means. In 
4.2 	addition to other applicable penalties imposed by this section, after notification from the 
4.3 	commissioner to the taxpayer that payments are required to be made by electronic means 
4.4 	under section 289A.20, subdivision 2, paragraph (e), or 4, paragraph (c) (b), or 289A.26, 
4.5 	subdivision 2a, and the payments are remitted by some other means, there is a penalty in 
4.6 	the amount of five percent of each payment that should have been remitted electronically. 
4.7 	After the commissioner's initial notification to the taxpayer that payments are required to 
4.8 	be made by electronic means, the commissioner is not required to notify the taxpayer in 
4.9 	subsequent periods if the initial notification specified the amount of tax liability at which a 
4.10 	taxpayer is required to remit payments by electronic means. The penalty can be abated 
4.11 	under the abatement procedures prescribed in section 270C.34, subdivision 2, if the failure 
4.12 	to remit the payment electronically is due to reasonable cause.

4.13 	EFFECTIVE DATE. This section is effective beginning with June 2014 tax 
4.14 	liabilities.

4.15 	Sec. 4.  REPEALER.
 4.16 	Minnesota Statutes 2012, section 289A.60, subdivision 15, is repealed.

4.17 	EFFECTIVE DATE. This section is effective beginning with June 2014 tax 
4.18 	liabilities.