HF4370 Summary

• Requires the Minnesota Commissioner of Revenue to reduce sales tax rates 15 months after the state begins enforcing collection duties on remote sellers and marketplace providers without physical presence in Minnesota.

• Adjustment factor calculated as ratio of: (1) prior 12-month revenue collections multiplied by Consumer Price Index change, to (2) new 12-month revenue collections after enforcement begins, ensuring revenue neutrality.

• Adjusted tax rates must be rounded to the nearest one thousandth of one percent and published in the State Register at least 30 days before taking effect.

• Triggering event defined as earliest of: (1) U.S. Supreme Court decision modifying Quill Corp. v. North Dakota to allow state remote seller collection requirements, or (2) enactment of federal law authorizing state collection requirements on remote sellers.

• Revisor of Statutes must update Minnesota Statutes section 297A.62 with new rates in the next statutory edition after Commissioner publishes rates.