2013-09-03

Statute: 116J.3738,Subd. 1

Brief Description: Provides a definition and method of certification for businesses in Greater Minnesota that qualify for a sales tax exemption under 297A.68, Subd. 49.

Effective Date: Effective May 24, 2013

Statute: 297A.61, Subd.10

Brief Description: Clarifies that the definition of tangible personal property does not include specified digital products or other digital products transferred electronically.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 25

Brief Description: Amends this statute so that any “pay” television service is taxable regardless if delivery is made via cable, direct satellite or otherwise, including the transmission of video,audio,subscription programming services and digital video recording services. Also deleted is the definition of “direct satellite service” as it is redundant.

Effective Date: Effective for sales and purchase made after June 30, 2013

Statute: 297A.61, Subd. 3

Brief Description: Expands the definition of sale for sales tax purposes to include: certain digital goods, business related warehousing and storage, business related electronic and recision equipment repair and maintenance; and commercial and industrial machinery and equipment repair and maintenance. Also clarifies that services for “in-home” monitoring by any organization at the direction of a county are exempt.

Effective Date: Effective for sales and purchases made after June 30, 2013. The effective date for business warehousing and storage is April 1, 2014.

Statute: 297A.61, Subd. 38

Brief Description: Sales: Adds specified digital products and other digital products to the definition of “bundled transaction” for purposes of determining whether the sale of two or more products is taxable when the items are sold for one non-itemized price.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 4

Brief Description: Makes changes to the definition of retail sale to include the sale of newly enumerated services. (see bill for details)

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd.45

Brief Description: Clarifies that a ring tone does not include digital audio files not stored on the communication device.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 49

Brief Description: Defines repair paint and materials for sales tax purposes. (See bill for details)

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd.50

Brief Description: Defines digital audio works as works that result from a series of musical, spoken, or other sounds that are transferred electronically and includes any digital code used to access, receive or otherwise obtain the digital audio works. Live or prerecorded songs, music, readings of books, speeches, ringtones, or other sound recordings.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 51

Brief Description: Defines digital audiovisual works as a series of related images which, when shown in succession, impart an impression of motion, together in accompanying sounds, if any, that are transferred electronically. Including: movies, music videos, news and entertainment, and live events. This includes any digital code used to access, receive or otherwise obtain the digital audiovisual work.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 52

Brief Description: Defines digital books as any literary work other than digital audio works or digital audiovisual works expressed in words, numbers, or other verbal or numerical symbols generally recognized as a book. It also includes any digital code used to access, receive or otherwise obtain the digital book. It Does not include periodicals, magazines, newspapers, or other news or information products or blogs.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 53

Brief Description: Defines digital code as a code providing a purchaser a right to obtain one or more specified digital products or other digital products, such as code imprinted on another tangible medium. A digital code does not include a gift card or other product that represents a stored monetary value that is deducted from a total.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 54

Brief Description: Specifies “other digital goods” as e-greeting cards and online video and computer games.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 55

Brief Description: Defines specified digital products to mean digital audio works, digital audio-visual works, and digital books that are transferred electronically.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 56

Brief Description: Defines transferred electronically as obtained or accessed by the purchaser by means other than tangible storage

media.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.61, Subd. 58

Brief Description: Defines self-service storage which is excluded from the definition of business related warehousing and storage that is taxable under section 297A.61, subd. 3, (m)(3).

Effective Date: Effective July 1, 2013

Statute: 297A.64, Subd. 1

Brief Description: Increases the tax on car rentals from 6.2% to 9.2%.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.66, Subd. 3

Brief Description: Clarifies that a remote seller must collect and remit the state sales tax in accordance with any federal remote seller law. This will allow the state to impose the duty to collect the tax on remote sellers if the federal main street fairness act passes and is enacted into law.

Effective Date: Effective May 24, 2013

Statute: 297A.66, Subd. 4a

Brief Description: Provides a definition of solicitor and creates a presumption that a remote seller has a solicitor in the state if for a commission the solicitor refers customers to the remote seller and sales for the prior 12 month period is $10,000 or more.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.665

Brief Description: Burden of Proof – clarifies that a person engaged in drop shipping may claim an exemption for resale based on an exemption certificate provided by its customer or reseller.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.668

Brief Description: Allows a business purchaser to use a multiple-points- of-use exemption certificate when purchasing electronically delivered goods and services that are concurrently available for use in multiple tax jurisdictions. The seller is exempt from collecting the tax, but the purchaser is responsible for paying the tax in the multiple jurisdictions using a consistent and uniform method of apportioning the sale.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.67, Subd. 13

Brief Description: Expands the sales tax exemption for textbooks required to higher education courses of study to include digital books that are defined in section 297A.61, subd. 52.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.67, Subd. 7

Brief Description: Exempts purchases of all drugs and medical devices covered by Medicare and Medicaid and expands the definition of durable medical equipment to include single-patient use repair and replacement parts.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.67, Subd. 7a

Brief Description: Provides a sales tax exemption for accessories and supplies required for the effective use of durable medical equipment and prosthetic devices that are exempt under section 297A.67, subd. 7.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.68, Subd. 2

Brief Description: Clarifies that the industrial production exemption includes materials stored, used, or consumed in industrial production of tangible personal property. Also, specifies that the industrial production exemption does not include services.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.68, Subd. 35

Brief Description: Repeals the exemption for telecommunications, cable television, and direct satellite machinery and equipment.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.68, Subd. 42

Brief Description: Qualified Data Centers – modifies the sales tax exemption for data centers by adding refurbished data centers and modifying the qualification.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.68, Subd. 49

Brief Description: Provides an upfront sales tax exemption for purchases of tangible personal property and taxable services purchased by a qualified business if the exemption is provided for in the business subsidy agreement.

Effective Date: Effective for sales and purchases made after June 30, 2014

Statute: 297A.68, Subd. 5

Brief Description: Provides an up-front exemption for capital equipment purchases.

Effective Date: Effective for sales and purchases made after August 30, 2014

Statute: 297A.68, Subd. 35

Brief Description: Repeals the exemption for telecommunications, cable television, and direct satellite machinery and equipment purchased or leased for use by the service provider.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 13

Brief Description: Fundraising sales by nonprofit organizations – extends the current sales tax exemption for qualifying sales of tangible personal property to include qualifying sales of services for fundraising sales by or for nonprofit groups.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 14

Brief Description: Extends the current sales tax exemption for qualifying sales of tangible personal property to include qualifying sales of services to fundraising events sponsored by nonprofit groups.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 18

Brief Description: Provides a sales tax exemption for most purchases by a nursing home or a boarding care facility

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 2

Brief Description: Add cities and counties to the list of purchasers eligible for a sales tax exemption on qualifying purchases.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 4

Brief Description: Provides a cross reference to the exemption in section 297A.70, subd. 9a.

Effective Date: Effective retroactively for sales and purchases made after June 30, 2012

Statute: 297A.70, Subd. 5

Brief Description: Extends the current sales tax exemption for qualifying sales of tangible personal property to also include qualifying sales of services to veterans groups.

Effective Date: Effective for sales and purchases made after June 30, 2013

Statute: 297A.70, Subd. 7

Brief Description: Sales tax exemption extended to hospitals and outpatient surgical centers is expanded to include certain critical access dental care providers as defined in current law.

Effective Date: Effective retroactively for sales and purchases made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations on claims for refund under Minnesota Statutes, section 297A.40, claims may be filed with the commissioner until June 30, 2014

Statute: 297A.70, Subd. 9a

Brief Description: Excludes from the sales tax the sale of lodging and prepared food and beverages between an established religious

order and an affiliated higher education institution.

Effective Date: Effective retroactively for sales and purchases made after June 30, 2012

Statute: 297A.71, Subd. 45

Brief Description: Provides a sales tax exemption for materials, supplies, and capital equipment incorporated into construction improvement or expansion of a biopharmaceutical manufacturing facility.

Effective Date: Effective retroactively to capital investments made and jobs created after December 31, 2012 and before July 1, 2019

Statute: 297A.71, Subd. 46

Brief Description: Provides a sales tax refund for materials and supplies used or consumed in and equipment incorporated into the construction or improvement of a qualifying research and development facility that has laboratory space of at least 400,000 square feet.

Effective Date: Effective for sales and purchases made after June 30, 2013 and before September 1, 2015

Statute: 297A.71, Subd. 47

Brief Description: Provides a sales tax exemption for materials, supplies, capital equipment, and fixtures in construction improvement or expansion of a qualifying industrial measurement manufacturing and controls facility if the facility has a total capital investment of at least $60 million.

Effective Date: Effective for sales and purchases made after June 30, 2013 and before December 31, 2014

Statute: 297A.71, Subd. 48

Brief Description: Provides a sales tax exemption for construction materials and supplies used in, and equipment incorporated into public infrastructure included in the Destination Medical Center Corporation development plan and financed with public funds.

Effective Date: Effective for sales and purchases made after June 30, 2015 and before July 1, 2049

Statute: 297A.82, Subd. 4a

Brief Description: Requires tax revenue collected from the sale or purchase of an aircraft to be deposited in the state airports fund.

Effective Date: Effective July 1, 2013 and applied to sales and purchases made on or after that date

Statute: 297A.82, Subd. 4(f)

Brief Description: Exempts from the taxes imposed under 297A the sales or purchase of equipment and parts necessary for repair and maintenance of aircraft as well as equipment or parts used to upgrade and improve aircraft which operates under Federal Aviation Regulations, parts 91 and 135 and associated installation charges.

Effective Date: Effective for Sales and Purchases made after June 30, 2013

Statute: 297B.01, Subds.14 and 16

Brief Description: Subjects a gift transfer of a motor vehicle between individuals to motor vehicle sales tax, but retains exemption for a gift transfer between spouses, between parent and child or grandparent and a grandchild, amending references.

Effective Date: Effective July 1, 2013 an applies to transfers of title that occur on or after that date.

Statute: 297B.02, Subd. 3

Brief Description: Increases the in lieu tax from $90 to $150 on the purchase of a collector passenger automobile or fire truck

Effective Date: Effective July 1, 2013 and applies to transfers of title that occur on or after that date.

Statute: 403.02, Subd. 17b, 403.06, Subd. 1a, 403.11, subd. 3d, 403.16, and 403.161 to 403.164

Brief Description: Exempts prepaid wireless customers from the current 911 fee and subjects them to the fees established in section 403.161.

Effective Date: Effective January 1, 2014, except that sections 403.06, subd. 1a, 403.11, subd. 3d, and 403.163, are effective May 24, 2013

Tax Type:For Businesses

Statute: 270C.69, Subd. 1 (c)

Brief Description: Wage Levy payment/Disclosure mandate: Employers must file all wage levy disclosure forms, and all wage levy payments electronically to the Department of Revenue.

Effective Date: Wage levy disclosers or wage levy payments filed or made after December 31, 2013

Tax Type:For Businesses

Statute: 289A.20, Subd. 2, 289A.20, Subd. 4, 289A.26, Subd. 2a, 295.55, Subd. 4, 297F.09, Subd. 7, 297G.09, Subd. 6, 297I.35, Subd. 2, 473.843, Subd. 3

Brief Description: Continuous electronic payment requirement: Various statutes have been amended to require that when a business exceeds the current threshold requiring it to make electronic payments, that the business must make electronic payments in all subsequent years.

Effective Date: Effective for the fiscal year ending June 30, 2013 and all fiscal years thereafter.

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