S.F. No. 3039 - Local Digital Media Gross Receipts Tax

• Imposes a 1% gross receipts tax on digital products providers for retail sales of digital products in Minnesota, with providers able to optionally collect the tax from purchasers.

• Subjects persons receiving digital products for use in Minnesota from non-taxed providers to the same 1% tax rate, with a credit available for taxes legally paid to other jurisdictions.

• Requires digital products providers with Minnesota nexus to collect the tax from purchasers and report sales by nine-digit zip code on returns filed using the same cycle and due dates as Minnesota sales tax.

• Directs all tax revenues, penalties, and interest to be deposited in the general fund and then appropriated to county auditors, who distribute payments to municipalities based on sales location for support of local digital media and access channels.

• Becomes effective for sales and purchases made after June 30, 2023.