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S.F. No. 3940 - Conditional sales tax rate adjustment (as proposed to be amended by the A-1 amendment)
 
Author: Senator Roger C. Chamberlain
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 25, 2018



 

This bill requires the commissioner of revenue to adjust the state and Legacy Fund sales tax rates if sales tax revenue collections increase as a result of retailers without a physical presence in the state collecting and remitting sales taxes.

The requirement is triggered the first day of a calendar quarter at least 60 days after the earlier of: 1) the U.S. Supreme Court modifies its Quill decision so that states may require sellers without a physical presence in the state to collect and remit sales tax; or 2) a federal law is enacted to allow states to impose a requirement for sellers without a physical presence in the state to collect and remit sales tax. The adjusted sales tax rates would be effective the first of the calendar quarter beginning 15 months after the state first enforces the duty for remote sellers and marketplace providers to collect and remit sales tax pursuant to conditions in (1) or (2) above.

The adjusted rates are based on the ratio of sales tax revenues collected in the 12 months immediately preceding enforcement of (1) or (2) above multiplied by the projected growth rate in sales tax revenues for the next 12 months, and sales tax revenues collected in the 12 months immediately following enforcement of (1) or (2) above. The new rates must be published in the State Register and updated in the next edition of Minnesota Statutes.

Effective the day following final enactment.

 

 
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