HF 1902

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:56am

A bill for an act
relating to taxation; sales and use; providing an exemption for items given away;
amending Minnesota Statutes 2008, section 297A.68, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2008, section 297A.68, is amended by adding a
subdivision to read:

new text begin Subd. 42. new text end

new text begin Production inputs for goods that are given away. new text end

new text begin Materials and
services used by a manufacturer in producing tangible personal property that is given to
another person without any remuneration or other consideration, whether for promotional,
charitable, or other purposes, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 297A.68, is amended by adding a subdivision
to read:

new text begin Subd. 43. new text end

new text begin Goods given away without remuneration. new text end

new text begin Taxable goods that a person
purchases, exempt from the tax as a sale for resale, in the normal course of business
remain exempt if the person subsequently uses the goods for promotional or charitable
purposes without remuneration or other consideration from another person.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end