Subdivision 1. Definition. In this section, "royalty" means the amount in money or value of property received by any person having any right, title, or interest in any tract of land in this state for permission to explore, mine, take out, and remove ore from the land.
Subd. 2. Collection at source. (a) Every person making payment of royalties shall deduct and withhold upon the royalties a tax as provided in this section.
(b) The amount of tax to be withheld shall be based upon tables to be prepared and distributed by the commissioner. The tables must be computed for several permissible withholding periods and shall take into account any exemptions allowed under this chapter. The amounts computed for withholding shall be such that the amount withheld for any person during the person's taxable year shall approximate in the aggregate as closely as possible the tax levied and imposed under this chapter for that taxable year upon the person's income subject to tax.
Subd. 3. Returns; deposits. Every person who is required to deduct and withhold tax under subdivision 2 shall file returns and make deposits as required under sections 289A.09 and 289A.20, subdivision 2.
Subd. 4. Withholding statement. Every person required to deduct and withhold tax under this section shall furnish withholding statements as required by section 289A.09, subdivision 2.
Subd. 5. Payor liable for tax withheld. The payor shall be liable for the payment of tax required to be deducted and withheld under subdivision 2 and shall not be liable to any person for the amount of the payment.
Subd. 6. Determination of tax due. The commissioner may grant permission to payors who do not wish to use the withholding tax tables provided in accordance with subdivision 2, paragraph (b), in accordance with section 290.92, subdivision 9.
Subd. 7. [Repealed, 1990 c 480 art 1 s 45]
Subd. 8. Records. Every person liable for tax imposed by this section or for the collection of it shall be subject to the provisions of sections 270C.31 and 270C.32.
Subd. 9. Payees incurring no income tax liability. Notwithstanding any other provision of this section a payor shall not be required to deduct and withhold any tax under this chapter upon a payment of royalties to a payee if there is in effect with respect to the payment a withholding allowance certificate, in the form and containing the information prescribed by the commissioner, furnished to the payor by the payee certifying that the payee:
(1) incurred no liability for income tax imposed under this chapter for the payee's preceding taxable year; and
(2) anticipates incurring no liability for income tax under this chapter for the current taxable year.
The commissioner shall provide by rule for the coordination of the provisions of this subdivision with the provisions of subdivision 4.
Subd. 10. Application for account number. A payor desiring to engage in business in Minnesota shall file with the commissioner an application for a withholding account number in accordance with section 290.92, subdivisions 24 and 25.
Subd. 11. Exemption from deduction and withholding. A person or entity whose shares or certificates of beneficial interest are traded on the New York Stock Exchange or publicly traded on any recognized stock exchange and which issues 1099 or K1 forms to its shareholders or certificate holders and provides the 1099 or K1 information to the Department of Revenue, is exempt from deduction and withholding under this section.
1987 c 268 art 9 s 21; 1990 c 480 art 1 s 46; 1992 c 511 art 6 s 16; 2018 c 182 art 1 s 78; 1Sp2021 c 14 art 12 s 13
Structure Minnesota Statutes
Chapters 289A - 295 — Various State Taxes And Programs
Chapter 290 — Income And Franchise Taxes
Section 290.0111 — Temporary Conformity To Certain Federal Tax Changes.
Section 290.0121 — Dependent Exemption.
Section 290.0122 — Itemized Deductions.
Section 290.0123 — Standard Deduction.
Section 290.0133 — Corporations; Additions To Federal Taxable Income.
Section 290.0134 — Corporations; Subtractions From Federal Taxable Income.
Section 290.0135 — Basis Modifications Affecting Gain Or Loss On Disposition Of Property.
Section 290.0136 — Certain Preferred Stock Losses.
Section 290.0137 — Accelerated Recognition Of Certain Installment Sale Gains.
Section 290.014 — Jurisdiction To Tax In General.
Section 290.015 — Minimum Contacts Required For Jurisdiction To Tax Trade Or Business.
Section 290.02 — Franchise Tax On Corporations Measured By Net Income.
Section 290.03 — Income Tax; Imposition, Classes Of Taxpayers.
Section 290.032 — Lump-sum Distribution Tax.
Section 290.04 — Liability For Tax.
Section 290.05 — Exempt Individuals, Organizations, Estates, Trusts.
Section 290.06 — Rates Of Tax; Credits.
Section 290.067 — Dependent Care Credit.
Section 290.0671 — Minnesota Working Family Credit.
Section 290.0672 — Long-term Care Insurance Credit.
Section 290.0674 — Minnesota Education Credit.
Section 290.0675 — Marriage Penalty Credit.
Section 290.0677 — Military Service Credits.
Section 290.0679 — Assignment Of Refund.
Section 290.068 — Credit For Increasing Research Activities.
Section 290.0681 — Credit For Historic Structure Rehabilitation.
Section 290.0682 — Student Loan Credit.
Section 290.0683 — Minnesota Housing Tax Credit.
Section 290.0684 — Section 529 Plan Credit.
Section 290.0685 — Credit For Parents Of Stillborn Children.
Section 290.0686 — Credit For Attaining Master's Degree In Teacher's Licensure Field.
Section 290.0692 — Small Business Investment Credit.
Section 290.07 — Net Income; Computation, Accounting Period.
Section 290.0802 — Subtraction For The Elderly And Disabled.
Section 290.081 — Income Of Nonresidents, Reciprocity.
Section 290.091 — Alternative Minimum Tax On Preference Items.
Section 290.0921 — Corporate Alternative Minimum Tax After 1989.
Section 290.0922 — Minimum Fee; Corporations; Partnerships.
Section 290.093 — Tax Computation For Mutual Savings Banks Conducting Life Insurance Business.
Section 290.095 — Operating Loss Deduction.
Section 290.10 — Nondeductible Items.
Section 290.17 — Gross Income, Allocation To State.
Section 290.172 — Commissioner Of Revenue.
Section 290.191 — Apportionment Of Net Income.
Section 290.20 — Net Income; Allocation To State.
Section 290.21 — Deductions Allowed To Corporations.
Section 290.22 — Estates And Trusts, Imposition Of Tax.
Section 290.26 — Exemption For Individual Retirement Account.
Section 290.281 — Common Trust Fund.
Section 290.30 — Fiduciaries, Duty To Pay Tax.
Section 290.31 — Partnerships; Individual Liability Of Partners.
Section 290.311 — Partnership Gross Income.
Section 290.32 — Taxes For Part Of Year, Computation.
Section 290.34 — Corporations, Special Provisions.
Section 290.371 — Notice Of Business Activities Report.
Section 290.431 — Nongame Wildlife Checkoff.
Section 290.432 — Corporate Nongame Wildlife Checkoff.
Section 290.48 — Large Amounts Of Cash; Presumption Of Jeopardy.
Section 290.491 — Tax On Gain; Discharge In Bankruptcy.
Section 290.62 — Distribution Of Revenues.
Section 290.92 — Tax Withheld At Source Upon Wages; Other Payments.
Section 290.9201 — Tax On Nonresident Entertainers.
Section 290.923 — Tax Withheld On Royalties Upon Ore.
Section 290.9705 — Surety Deposits Required For Construction Contracts.
Section 290.9725 — S Corporation.
Section 290.9726 — Corporation Taxable Income Taxed To Shareholders.
Section 290.9727 — Tax On Certain Built-in Gains.
Section 290.9728 — Tax On Capital Gains.
Section 290.9729 — Tax On Passive Investment Income.
Section 290.9741 — Election By Remic.
Section 290.9742 — Remic Income Taxable To Holders Of Interests.