HF 763

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:41am

A bill for an act
relating to taxation; sales taxes; providing an exemption from sales tax for
construction activities, materials, and equipment used in construction and
improvement of the Northern Lights Express Rail Line; amending Minnesota
Statutes 2008, sections 297A.71, by adding a subdivision; 297A.75, subdivisions
1, 2, 3.

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

Section 1.

Minnesota Statutes 2008, section 297A.71, is amended by adding a
subdivision to read:

new text begin Subd. 41. new text end

new text begin Construction materials; Northern Lights Express Rail Line. new text end

new text begin Materials
and supplies used or consumed in, and equipment incorporated into, the construction or
improvement of the Northern Lights Express Rail Line and associated facilities by a public
entity or under a contract with a public entity including, but not limited to, track and signal
improvements, stations, park-and-ride facilities, and maintenance facilities are exempt.
The tax must be imposed and collected as if the rate under section 297A.62, subdivision
1, applied and then refunded in the manner provided in section 297A.75. Refunds must
not be applied for or issued until after November 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, 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, supplies, fixtures, furnishings, and equipment for a county law
enforcement and family service center under section 297A.71, subdivision 26;

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

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

(11) 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;

(12) tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41;

(13) commuter rail vehicle and repair parts under section 297A.70, subdivision
3, clause (11); deleted text begin and
deleted text end

(14) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40 new text begin ; and
new text end

new text begin (15) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 41 new text end .

Sec. 3.

Minnesota Statutes 2008, 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), (7), and (8), 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 (9), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (10), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (11) and (12), the owner of the qualifying business; and

(8) for subdivision 1, clauses (13) deleted text begin and deleted text end new text begin , new text end (14), new text begin and (15), new text end the applicant must be the
governmental entity that owns or contracts for the project or facility.

Sec. 4.

Minnesota Statutes 2008, section 297A.75, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
(12), (13), deleted text begin or deleted text end (14), new text begin or (15), new text end the contractor, subcontractor, or builder must furnish to the
refund applicant a statement including the cost of the exempt items and the taxes paid on
the items unless otherwise specifically provided by this subdivision. The provisions of
sections 289A.40 and 289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective for sales and purchases made after the day following
final enactment.
new text end