HF 2321

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to sales and use tax; exempting the sales of
diesel fuel used to operate commuter rail systems;
amending Minnesota Statutes 2004, sections 297A.68,
subdivision 19; 297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2004, section 297A.68,
subdivision 19, is amended to read:

Subd. 19.

Petroleum products.

The following petroleum
products are exempt:

(1) products upon which a tax has been imposed and paid
under chapter 296A, and for which no refund has been or will be
allowed because the buyer used the fuel for nonhighway use;

(2) products that are used in the improvement of
agricultural land by constructing, maintaining, and repairing
drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures;

(3) products purchased by a transit system receiving
financial assistance under section 174.24, 256B.0625,
subdivision 17, or 473.384;

(4) products purchased by an ambulance service licensed
under chapter 144E;

(5) products used in a passenger snowmobile, as defined in
section 296A.01, subdivision 39, for off-highway business use as
part of the operations of a resort as provided under section
296A.16, subdivision 2, clause (2); deleted text begin or
deleted text end

(6) products purchased by a state or a political
subdivision of a state for use in motor vehicles exempt from
registration under section 168.012, subdivision 1, paragraph
(b) new text begin ; or
new text end

new text begin (7) products purchased for use as fuel for a commuter rail
system operating under sections 174.80 to 174.90. 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 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases
made after June 30, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, 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) chair lifts, ramps, elevators, and associated 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; deleted text begin and
deleted text end

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

new text begin (10) fuel purchased for commuter rail systems under section
297A.68, subdivision 19, clause (7) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases
made after June 30, 2005.
new text end

Sec. 3.

Minnesota Statutes 2004, 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; deleted text begin and
deleted text end

(5) for subdivision 1, clause (9), the owner of the
qualified low-income housing project new text begin ; and
new text end

new text begin (6) for subdivision 1, clause (10), the operator of the
commuter rail system new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases
made after June 30, 2005.
new text end