MN SF3940

The commissioner of revenue must reduce sales tax rates in Minnesota Statutes sections 297A.62(1) and 297A.62(1a) effective 15 months after the state begins enforcing tax collection on remote retailers and marketplace providers.

The tax rate reduction must be calculated to keep total sales tax revenue neutral by comparing revenues from the 12-month period before enforcement begins (adjusted for Consumer Price Index changes) against revenues from the 12-month period after enforcement begins.

The trigger for the rate adjustment occurs on the first day of a calendar quarter at least 60 days after either a U.S. Supreme Court decision modifying the Quill Corp. v. North Dakota ruling or federal legislation authorizing states to tax remote retailers.

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 implementation, with the revisor of statutes updating Minnesota Statutes accordingly.

The bill becomes effective the day following final enactment.