Minnesota SF 3332: Prosecutorial training appropriation

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; repealing various sales and use tax exemptions; imposing a​
1.3 gross receipts tax on various services; amending Minnesota Statutes 2024, sections​
1.4 297A.61, subdivision 4; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4;​
1.5 proposing coding for new law in Minnesota Statutes, chapter 295; repealing​
1.6 Minnesota Statutes 2024, sections 297A.67, subdivisions 34, 35, 38; 297A.68,​
1.7 subdivisions 17, 30, 42, 46.​
1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.9 Section 1. [295.90] BUSINESS-TO-BUSINESS SERVICES GROSS RECEIPTS TAX.​
1.10 Subdivision 1.Definitions.(a) For purposes of this section, the definitions in this​
1.11 subdivision have the meanings given.​
1.12 (b) "Commissioner" means the commissioner of revenue.​
1.13 (c) "Gross receipts" means the total amount received in money or by barter or exchange​
1.14 for taxable services as measured by the sales price, but does not include any taxes imposed​
1.15 directly on the consumer that are separately stated on the invoice, bill of sale, or similar​
1.16 document given to the purchaser.​
1.17 (d) "Retail sale" means any sale of a taxable service for any purpose other than resale​
1.18 by the purchaser in the normal course of business as defined in section 297A.61, subdivision​
1.19 21.​
1.20 (e) "Taxable services" means the sale of the following services by a trade or business​
1.21 entity to another trade or business entity:​
1.22 (1) legal;​
1.23 (2) accounting and bookkeeping;​
1​Section 1.​
25-05334 as introduced​03/31/25 REVISOR EAP/AC​
SENATE​
STATE OF MINNESOTA​
S.F. No. 3332​NINETY-FOURTH SESSION​
(SENATE AUTHORS: MAYE QUADE, Boldon, Hoffman and Mann)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​1714​04/07/2025​
Referred to Taxes​

2.1 (3) architectural and engineering;​
2.2 (4) research and development;​
2.3 (5) specialized design;​
2.4 (6) computer;​
2.5 (7) management consulting;​
2.6 (8) other consulting and development;​
2.7 (9) office administrative;​
2.8 (10) facilities support;​
2.9 (11) employment;​
2.10 (12) business support;​
2.11 (13) professional and technical;​
2.12 (14) automotive repair and maintenance;​
2.13 (15) electronic equipment repair and maintenance;​
2.14 (16) commercial machinery repair and maintenance;​
2.15 (17) repair and maintenance of personal property; and​
2.16 (18) any service enumerated in section 297A.61, subdivision 3, paragraph (g), clauses​
2.17 (3), (5), and (6), items (i), (iii), (iv), and (vi).​
2.18 (f) "Trade or business" means activity carried on for the production of income from​
2.19 selling goods or performing services.​
2.20 (g) "Trade or business entity" means an entity that engages in a trade or business.​
2.21 Subd. 2.Gross receipts tax imposed.(a) A tax equal to two percent of gross receipts​
2.22 from retail sales in Minnesota of taxable services is imposed on any trade or business entity​
2.23 that provides taxable services to another trade or business entity. A trade or business entity​
2.24 may but is not required to collect the tax imposed by this section from the purchaser as long​
2.25 as the tax is separately stated on the receipt, invoice, bill of sale, or similar document given​
2.26 to the purchaser.​
2.27 (b) The tax imposed under this section is in addition to any other tax imposed on the​
2.28 retail sale of services under chapter 297A or income received for services provided under​
2.29 chapter 290.​
2​Section 1.​
25-05334 as introduced​03/31/25 REVISOR EAP/AC​

3.1 Subd. 3.Use tax imposed; credit for taxes paid.(a) A person who receives taxable​
3.2 services for use in Minnesota, other than from a trade or business entity that paid the tax​
3.3 under subdivision 2, is subject to tax at the rate imposed under subdivision 2. Liability for​
3.4 the tax is incurred when the person has received the taxable services to completion in​
3.5 Minnesota. The tax must be remitted to the commissioner in the same manner prescribed​
3.6 for taxes imposed under chapter 297A.​
3.7 (b) A trade or business entity that has paid taxes to another state or any subdivision​
3.8 thereof on the same transaction and is subject to tax under this section is entitled to a credit​
3.9 for the tax legally due and paid to another state or subdivision thereof to the extent of the​
3.10 lesser of (1) the tax actually paid to the other state or subdivision thereof, or (2) the amount​
3.11 of tax imposed by Minnesota on the transaction subject to tax in the other state or subdivision​
3.12 thereof.​
3.13 Subd. 4.Tax collection required.A trade or business entity with nexus in Minnesota​
3.14 that is not subject to tax under subdivision 2 is required to collect the tax imposed under​
3.15 subdivision 3 from the purchaser of the taxable services and give the purchaser a receipt​
3.16 for the tax paid. The tax collected must be remitted to the commissioner in the same manner​
3.17 prescribed for the taxes imposed under chapt