Minnesota Department of Revenue
REQUEST FOR COMMENTS
Possible Rules Governing Recordkeeping, Minnesota Rules 8130.7500; Revisor’s ID Number R-04537.
Subject of Rules. The Minnesota Department of Revenue (“Department”) requests comments on possible rules governing sales and use tax (“SUT”) recordkeeping and consolidated return requirements. The Department is considering repealing Minnesota Rules, part 8130.7500, subparts 3, 6 and 8, which concern consolidated returns and recordkeeping, and replacing them with a new rule. The focus of the possible new rule – providing updated SUT tax recordkeeping requirements, including clarifications that address changes in recordkeeping technology. The Department is also considering using the new rule to make minor changes to Minnesota Rules, part 8130.7500, subpart 3, which provides the conditions under which a person with two or more places of business may elect to file a consolidated SUT return.
Persons Affected. The possible replacement rule would affect retailers subject to the state’s SUT recordkeeping requirements and third parties assisting retailers with recordkeeping compliance. In addition, it could also affect retailers with two or more places of business that elect to file a consolidated SUT return.
Statutory Authority. The Department’s statutory authority to adopt the possible replacement rule is set forth in Minnesota Statutes: 1) section 297A.77, subd. 5, which provides that SUT taxpayers “shall keep such records…and comply with such rules, as the commissioner may from time to time prescribe”; 2) section 270C.03, which grants the Commissioner of Revenue authority to “administer and enforce the assessment and collection of taxes”; and 3) section 270C.06, which provides that the “commissioner shall from time to time, make, publish, and distribute rules for the administration and enforcement of state tax laws. The rules have the force of law.” Under these statutes, the Department has authority to adopt the contemplated replacement rule.
Public Comment. The purpose of this notice is to allow the public to comment on how the Department might improve the current rule governing SUT recordkeeping and consolidated return requirements – Minnesota Rules, part 8130.7500.
The Department does not have available for review a draft of the possible replacement rule, but would like to hear from the public on what the Department should address as it considers drafting a replacement of the current rule. For example, what specific recordkeeping requirements should be clarified to account for changes in recordkeeping technology.
Interested persons or groups may submit written comments until 4:30 p.m. on Monday, April 5, 2021. The Department will not publish a notice of intent to adopt any replacement rule until more than 60 days after this request for comments, at which time a draft of the possible replacement rule would be available for comment.
Submit comments via the Office of Administrative Hearings Rulemaking e-comments website at https://minnesotaoah.granicusideas.com/discussions.
Rule Drafts. The Department does not anticipate that a draft of any proposed replacement rule will be available before its publication in the notice of intent to adopt.
Agency Contact Person. Written questions and requests for more information on this Request for Comments should be directed to:
Jim Jordan
Appeals and Legal Services Division
Minnesota Department of Revenue
600 North Robert Street
Mail Station 2220
St. Paul, MN 55146
jim.jordan@state.mn.us
Alternative Format. Upon request, this information may be made available in an alternative format, such as large print, braille, or audio. To make such a request, please contact the agency contact person using the contact information above.
NOTE: Comments received in response to this request will not necessarily be included in the formal rulemaking record submitted to the administrative law judge if and when a proceeding to adopt rules is started. The agency is required to submit to the judge only written comments received after any replacement rule is formally proposed. If you submitted comments during development of the rule and want to ensure that the judge reviews them, you should resubmit the comments after any replacement rule is proposed.