HF 109

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing a direct sales tax 
  1.3             exemption for materials and supplies used to construct 
  1.4             certain correctional facilities; amending Minnesota 
  1.5             Statutes 2000, sections 297A.70, subdivision 2; 
  1.6             297A.71, subdivision 3; and 297A.75, subdivisions 1, 
  1.7             2, and 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 297A.70, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [SALES TO GOVERNMENT.] (a) All sales, except 
  1.12  those listed in paragraph (b), to the following governments and 
  1.13  political subdivisions, or to the listed agencies or 
  1.14  instrumentalities of governments and political subdivisions, are 
  1.15  exempt: 
  1.16     (1) the United States and its agencies and 
  1.17  instrumentalities; 
  1.18     (2) school districts, the University of Minnesota, state 
  1.19  universities, community colleges, technical colleges, state 
  1.20  academies, the Perpich Minnesota center for arts education, and 
  1.21  an instrumentality of a political subdivision that is accredited 
  1.22  as an optional/special function school by the North Central 
  1.23  Association of Colleges and Schools; 
  1.24     (3) hospitals and nursing homes owned and operated by 
  1.25  political subdivisions of the state; 
  1.26     (4) other states or political subdivisions of other states, 
  2.1   if the sale would be exempt from taxation if it occurred in that 
  2.2   state; and 
  2.3      (5) sales to public libraries, public library systems, 
  2.4   multicounty, multitype library systems as defined in section 
  2.5   134.001, county law libraries under chapter 134A, state agency 
  2.6   libraries, the state library under section 480.09, and the 
  2.7   legislative reference library.  
  2.8      (b) This exemption does not apply to the sales of the 
  2.9   following products and services: 
  2.10     (1) building, construction, or reconstruction materials 
  2.11  purchased by a contractor or a subcontractor as a part of a 
  2.12  lump-sum contract or similar type of contract with a guaranteed 
  2.13  maximum price covering both labor and materials for use in the 
  2.14  construction, alteration, or repair of a building or facility, 
  2.15  except for correctional facilities for which construction 
  2.16  materials are exempt under section 297A.71, subdivision 3; 
  2.17     (2) construction materials purchased by tax exempt entities 
  2.18  or their contractors to be used in constructing buildings or 
  2.19  facilities which will not be used principally by the tax exempt 
  2.20  entities; 
  2.21     (3) the leasing of a motor vehicle as defined in section 
  2.22  297B.01, subdivision 5, except for leases entered into by the 
  2.23  United States or its agencies or instrumentalities; or 
  2.24     (4) meals and lodging as defined under section 297A.61, 
  2.25  subdivisions 3, paragraph (d), and 16, paragraph (c), except for 
  2.26  meals and lodging purchased directly by the United States or its 
  2.27  agencies or instrumentalities. 
  2.28     (c) As used in this subdivision, "school districts" means 
  2.29  public school entities and districts of every kind and nature 
  2.30  organized under the laws of the state of Minnesota, and any 
  2.31  instrumentality of a school district, as defined in section 
  2.32  471.59. 
  2.33     [EFFECTIVE DATE.] This section is effective for sales and 
  2.34  purchases occurring after June 30, 2001. 
  2.35     Sec. 2.  Minnesota Statutes 2000, section 297A.71, 
  2.36  subdivision 3, is amended to read: 
  3.1      Subd. 3.  [CORRECTIONAL FACILITIES.] Building materials and 
  3.2   supplies for constructing or improving an adult or juvenile 
  3.3   correctional facility by a county, home rule charter city, or 
  3.4   statutory city are exempt if the project is mandated by state or 
  3.5   federal law, rule, or regulation.  The tax must be imposed and 
  3.6   collected as if the rate under section 297A.62, subdivision 1, 
  3.7   applied and then refunded in the manner provided in section 
  3.8   297A.75. 
  3.9      [EFFECTIVE DATE.] This section is effective for sales and 
  3.10  purchases occurring after June 30, 2001. 
  3.11     Sec. 3.  Minnesota Statutes 2000, section 297A.75, 
  3.12  subdivision 1, is amended to read: 
  3.13     Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
  3.14  receipts from the sale of the following exempt items must be 
  3.15  imposed and collected as if the sale were taxable and the rate 
  3.16  under section 297A.62, subdivision 1, applied.  The exempt items 
  3.17  include: 
  3.18     (1) capital equipment exempt under section 297A.68, 
  3.19  subdivision 5; 
  3.20     (2) building materials for an agricultural processing 
  3.21  facility exempt under section 297A.71, subdivision 13; 
  3.22     (3) building materials for mineral production facilities 
  3.23  exempt under section 297A.71, subdivision 14; 
  3.24     (4) building materials for correctional facilities under 
  3.25  section 297A.71, subdivision 3; 
  3.26     (5) building materials used in a residence for disabled 
  3.27  veterans exempt under section 297A.71, subdivision 11; and 
  3.28     (6) (5) chair lifts, ramps, elevators, and associated 
  3.29  building materials exempt under section 297A.71, subdivision 12. 
  3.30     [EFFECTIVE DATE.] This section is effective for sales and 
  3.31  purchases occurring after June 30, 2001. 
  3.32     Sec. 4.  Minnesota Statutes 2000, section 297A.75, 
  3.33  subdivision 2, is amended to read: 
  3.34     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
  3.35  forms prescribed by the commissioner, a refund equal to the tax 
  3.36  paid on the gross receipts of the exempt items must be paid to 
  4.1   the applicant.  Only the following persons may apply for the 
  4.2   refund: 
  4.3      (1) for subdivision 1, clauses (1) to (3), the applicant 
  4.4   must be the purchaser; 
  4.5      (2) for subdivision 1, clause (4), the applicant must be 
  4.6   the governmental subdivision; 
  4.7      (3) for subdivision 1, clause (5) (4), the applicant must 
  4.8   be the recipient of the benefits provided in United States Code, 
  4.9   title 38, chapter 21; and 
  4.10     (4) (3) for subdivision 1, clause (6) (5), the applicant 
  4.11  must be the owner of the homestead property. 
  4.12     [EFFECTIVE DATE.] This section is effective for sales and 
  4.13  purchases occurring after June 30, 2001. 
  4.14     Sec. 5.  Minnesota Statutes 2000, section 297A.75, 
  4.15  subdivision 3, is amended to read: 
  4.16     Subd. 3.  [APPLICATION.] (a) The application must include 
  4.17  sufficient information to permit the commissioner to verify the 
  4.18  tax paid.  If the tax was paid by a contractor, subcontractor, 
  4.19  or builder, under subdivision 1, clause (4), or (5), or (6), the 
  4.20  contractor, subcontractor, or builder must furnish to the refund 
  4.21  applicant a statement including the cost of the exempt items and 
  4.22  the taxes paid on the items unless otherwise specifically 
  4.23  provided by this subdivision.  The provisions of sections 
  4.24  289A.40 and 289A.50 apply to refunds under this section. 
  4.25     (b) An applicant may not file more than two applications 
  4.26  per calendar year for refunds for taxes paid on capital 
  4.27  equipment exempt under section 297A.68, subdivision 5. 
  4.28     [EFFECTIVE DATE.] This section is effective for sales and 
  4.29  purchases occurring after June 30, 2001.