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General Information

Electronic Filing and

Due Dates. Estimated tax payments are due

Who Must File

quarterly by the 15th day of April, July, and

Payments

You’re required to file a MinnesotaCare tax

October of the current year and January 15

return if you are:

Annual Returns

of the following year.

• a business licensed by the state of Min-

File your annual return electronically using

If the due date falls on a weekend or

nesota to sell legend drugs at wholesale

our e-Services system (see page 3).

holiday, payments electronically made or

in Minnesota, including:

postmarked the next business day are con-

Payments

— legend drug manufacturers

sidered timely.

You are required to pay electronically if

— legend drug distributors

your tax liability was more than $10,000

Each estimated tax payment must be at least

— legend drug jobbers

for any one Minnesota business tax during

the lesser of one of the following:

the previous fiscal year (July 1–June 30).

—legend drug brokers

• 90 percent of one-fourth of your actual

If you are required to pay any Minnesota

tax for the current year

• a pharmacy located in another state that

business tax electronically for one year, you

is required by the state of Minnesota to

• one-fourth of your actual tax for the

must pay all Minnesota business taxes elec-

have a nonresident pharmacy license to

previous year if you were in business for

tronically for all future years. We will send

sell legend drugs at retail to consumers in

the entire year and you had a tax liability

you a notice the first year you are required

Minnesota, including by mail order

To determine your estimated tax payments,

to pay electronically.

• a business located outside Minnesota that

see the MinnesotaCare Estimated Tax In-

A 5 percent penalty will be assessed if you

transports legend drugs:

structions available on our website.

fail to pay electronically when required,

— directly to a pharmacy in Minnesota

Additional Charge for Underpayment of

even if a check payment is received on

that is a member of the same corpora-

Estimated Tax. If any payment is less than

time.

tion, or

the required amount or is paid late, an ad-

— through a distributor to a pharmacy

ditional tax charge (ATC) for underpaying

Filing Due Date

in Minnesota that is a member of the

the estimated tax will be assessed.

Annual Tax Return

same corporation.

When you file your annual tax return, our

The regular due date to file your annual

e-Services system will calculate the under-

Definition of Legend Drugs

MinnesotaCare tax return and pay any ad-

payment penalty, if any, for you.

ditional tax due for the previous calendar

Legend drugs are drugs or gases that are

year is March 15.

classified by the FDA as a drug, not as a

Reporting Business Changes

device, and are required by federal law to

The return must be filed even if there is

Be sure to update your business information

be sold or dispensed in a container labeled

no additional tax due. If March 15 falls on

if you do any of the following:

with one of the following statements:

a weekend or holiday, returns filed on the

• “Caution: Federal law prohibits dispens-

next business day are considered timely.

• change the name, address, owner/officers,

ing without prescription”

or ownership of your business

Extension of Time to File

• make any other changes (such as email

• “Rx only”

If you cannot file your return by the regular

address, phone number, or contact per-

Blood, blood components, and blood

due date, you may request a 60-day filing

son)

derivatives. Blood and blood components

extension. To request an extension for your

• need to add or delete a tax type

2017 return, call 651-282-5533 no later

are not considered legend drugs under Min-

• close your business

than March 15, 2018.

nesota law. Wholesale drug distributors are

• are no longer required to file and pay

not required to pay tax on the sale of blood

MinnesotaCare tax

A filing extension does not extend the time

or blood components.

you have to pay your tax. You must pay

To update, go to our website and log in to

any tax you owe by the regular due date or

Blood derivatives, however, which are

e-Services. For additional information, see

you will be assessed penalties and interest.

derived from blood, plasma, or serum

Managing Your Account Profile in e‑Servic-

For 2017 returns, the regular due date is

through a chemical manufacturing process,

es on page 5.

March 15, 2018. To pay electronically, go

are considered legend drugs and are tax-

to our website and log in to e-Services.

able. You must include amounts you receive

Recordkeeping

for blood derivatives when reporting your

You should keep all internal accounting

Estimated Tax Requirements

legend drug sales.

records and external third-party documenta-

You’re required to make estimated tax pay-

tion that support the amounts reported on

Tax Passthrough

ments during the year if your total annual

your MinnesotaCare tax return.

MinnesotaCare tax will be more than $500.

A pharmacy may transfer the additional

This includes any paper records and any

expense generated by the Wholesale Drug

If your total annual tax will be $500 or less,

records that you receive or store electroni-

Distributor Tax to a pharmacy benefits

you may pay your tax when you file your

cally.

manager. The law requires the pharmacy

annual tax return and are not required to

benefits manager to pay the transferred

make estimated payments during the year.

expense (M.S. 295.582, subd. 1).

Continued

Wholesale Drug Distributor Tax Instructions - Minnesota Department Of Revenue - 2017 Page 2

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