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A Minnesota revenue notice on exemption certificates has been revoked because there is already a statute that specifically provides the content and form of allowable exemption certificates, as well as the means of identification that are allowed when the purchaser does not have a Minnesota tax identification number. (Revenue Notice No. 09-06, Minnesota Department of Revenue, June 15, 2009)


Beginning July 1, 2009, the Minnesota sales and use tax rate will increase from 6.5% to 6.875%. In the November 2008 general election, voters approved a constitutional amendment to increase the tax rate to protect various environmental issues. Sales tax rate charts on the Minnesota Department of Revenue Web site will be updated to reflect this increase. (General Sales and Use Tax Rate Increases to 6.875%, Minnesota Department of Revenue, April 2009)


The Minnesota House of Representatives and the Minnesota Senate have both introduced bills that are similar to the New York “Amazon law.” In both bills, a retailer is presumed to have a solicitor in the state if it enters into an agreement with a resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link on an internet web site, or otherwise, to the seller. This presumption will only apply if the total gross receipts from customers in the state who were referred by these resident solicitors are at least $10,000 in the 12-month period proceeding the calendar quarter in which the sale was made. The presumption can be rebutted by proof that the resident solicitor did not engage in any solicitation that would satisfy the U.S. Constitution during the 12-month period in question. (H.F. 401 and S.F. 282, as introduced in the Minnesota House of Representatives and the Senate on January 29, 2009)


Voters approved an increase to Minnesota’s sales and use tax rate from 6.5% to 6.875%. The increase will take effect on July 1, 2009. The proceeds will be dedicated to outdoor heritage, clean water, parks and trails, and arts and cultural heritage. (Constitutional Amendment, Minnesota Secretary of State, November 5, 2008)


Minnesota has amended its sales and use tax laws to conform with recent changes to the Streamlined Sales and Use Tax Agreement (SSUTA). The original 2008 Minnesota omnibus tax bill, revised Minnesota sales and use tax laws by amending the definition of “telecommunication services” and related definition; clarifying the treatment of bundled transactions; and eliminating the separate gross receipts tax on fur clothing and subjecting fur clothing to the sales tax. On May 5, 2008, the Minnesota House of Representative passed another omnibus tax bill, H.F. 3149, providing relief from liability for purchasers, sellers, and certified service providers (CSPs) under certain circumstances; amending the exemption for durable medical equipment repair and replacement parts; and including the Commonwealth of Puerto Rico in the definition of “state.” Additional rules and regulations apply. (Ch. 154 (H.F. 3201), Laws 2008; H.F. 3149, Laws 2008)



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