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HF 352

as introduced - 88th Legislature (2013 - 2014) Posted on 02/04/2013 03:10pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to sales and use taxation; amending Minnesota Statutes 2012, sections
297A.70, subdivision 7; 297A.75, subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read:


Subd. 7.

Hospitals deleted text begin anddeleted text end new text begin ,new text end outpatient surgical centersnew text begin , and critical access dental
providers
new text end .

(a) Sales, except for those listed in paragraph deleted text begin (c)deleted text end new text begin (d)new text end , to a hospital are exempt,
if the items purchased are used in providing hospital services. For purposes of this
subdivision, "hospital" means a hospital organized and operated for charitable purposes
within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under
chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or
required to be performed by a "hospital" under chapter 144.

(b) Sales, except for those listed in paragraph deleted text begin (c)deleted text end new text begin (d)new text end , to an outpatient surgical center
are exempt, if the items purchased are used in providing outpatient surgical services. For
purposes of this subdivision, "outpatient surgical center" means an outpatient surgical
center organized and operated for charitable purposes within the meaning of section
501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other
jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means:
(1) services authorized or required to be performed by an outpatient surgical center under
chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means
health services furnished to a person whose medical condition is sufficiently acute to
require treatment unavailable through, or inappropriate to be provided by, a clinic or
physician's office, but not so acute as to require treatment in a hospital emergency room.

(c) new text begin Sales, except for those listed in paragraph (d), to a critical access dental provider
are exempt, if the items purchased are used in providing critical access dental care
services. For the purposes of this subdivision, "critical access dental provider" means
a dentist or dental clinic designated as a critical access dental provider under section
256B.76, subdivision 4, that serve only recipients of Minnesota health care programs.
new text end

new text begin (d) new text end This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital deleted text begin ordeleted text end new text begin ,new text end outpatient surgical center, new text begin or critical access dental provider,
new text end even though the clinic, office, or facility may be owned and operated by a hospital deleted text begin ordeleted text end new text begin ,
new text end outpatient surgical centernew text begin , or critical access dental providernew text end ;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and
prepared food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities
that will not be used principally by the hospital deleted text begin ordeleted text end new text begin ,new text end outpatient surgical centernew text begin , or critical
access dental provider
new text end ;

(4) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a hospital deleted text begin ordeleted text end new text begin , new text end outpatient surgical centernew text begin , or critical access dental providernew text end ; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.

deleted text begin (d)deleted text end new text begin (e)new text end A limited liability company also qualifies for exemption under this
subdivision if (1) it consists of a sole member that would qualify for the exemption, and
(2) the items purchased qualify for the exemption.

deleted text begin (e)deleted text end new text begin (f)new text end An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:

(1) the nonprofit unit would have qualified for exemption under subdivision 4; and

(2) the items purchased would have qualified for the exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying
purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the
manner provided in Minnesota Statutes, section 297A.75.
new text end

Sec. 2.

Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) capital equipment exempt under section 297A.68, subdivision 5;

(2) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(3) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(4) building materials for correctional facilities under section 297A.71, subdivision 3;

(5) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(6) elevators and building materials exempt under section 297A.71, subdivision 12;

(7) building materials for the Long Lake Conservation Center exempt under section
297A.71, subdivision 17;

(8) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23
;

(9) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(10) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(11) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);

(12) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

(13) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section 297A.71, subdivision 41;

(14) materials, supplies, and equipment for construction, improvement, or expansion
of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision
42;

(15) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section 297A.68, subdivision 42; deleted text begin and
deleted text end

(16) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44new text begin ; and
new text end

new text begin (17) items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c)
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;

(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
subdivision;

(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (10), (13), (14), and (15), the owner of the qualifying
business; deleted text begin and
deleted text end

(8) for subdivision 1, clauses (11), (12), and (16), the applicant must be the
governmental entity that owns or contracts for the project or facilitynew text begin ; and
new text end

new text begin (9) for subdivision 1, clause (17), the applicant must be the purchaser who qualified
as a critical access dental provider under section 297A.70, subdivision 7, paragraph (c),
at the time of purchase
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end