HF 3087

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting certain sales or 
  1.3             leases of motor vehicles by a nonprofit corporation 
  1.4             from sales and use or motor vehicle sales tax; 
  1.5             amending Minnesota Statutes 1998, section 297A.25, 
  1.6             subdivision 16; and 297B.03. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 297A.25, 
  1.9   subdivision 16, is amended to read: 
  1.10     Subd. 16.  [SALES TO NONPROFIT GROUPS.] The gross receipts 
  1.11  from the sale of tangible personal property to, and the storage, 
  1.12  use or other consumption of such property by, any corporation, 
  1.13  society, association, foundation, or institution organized and 
  1.14  operated exclusively for charitable, religious, or educational 
  1.15  purposes if the property purchased is to be used in the 
  1.16  performance of charitable, religious, or educational functions, 
  1.17  or any senior citizen group or association of groups that in 
  1.18  general limits membership to persons who are either (1) age 55 
  1.19  or older, or (2) physically disabled, and is organized and 
  1.20  operated exclusively for pleasure, recreation, and other 
  1.21  nonprofit purposes, no part of the net earnings of which inures 
  1.22  to the benefit of any private shareholders, are exempt.  For 
  1.23  purposes of this subdivision, charitable purpose includes the 
  1.24  maintenance of a cemetery owned by a religious organization.  
  1.25  Sales exempted by this subdivision include sales pursuant to 
  1.26  section 297A.01, subdivision 3, paragraphs (d) and (f).  This 
  2.1   exemption shall not apply to building, construction, or 
  2.2   reconstruction materials purchased by a contractor or a 
  2.3   subcontractor as a part of a lump-sum contract or similar type 
  2.4   of contract with a guaranteed maximum price covering both labor 
  2.5   and materials for use in the construction, alteration, or repair 
  2.6   of a building or facility.  This exemption does not apply to 
  2.7   construction materials purchased by tax exempt entities or their 
  2.8   contractors to be used in constructing buildings or facilities 
  2.9   which will not be used principally by the tax exempt entities.  
  2.10  This exemption does not apply applies to the leasing of a motor 
  2.11  vehicle as defined in section 297B.01, subdivision 5. 
  2.12     Sec. 2.  Minnesota Statutes 1998, section 297B.03, is 
  2.13  amended to read: 
  2.14     297B.03 [EXEMPTIONS.] 
  2.15     There is specifically exempted from the provisions of this 
  2.16  chapter and from computation of the amount of tax imposed by it 
  2.17  the following:  
  2.18     (1) Purchase or use, including use under a lease purchase 
  2.19  agreement or installment sales contract made pursuant to section 
  2.20  465.71, of any motor vehicle by the United States and its 
  2.21  agencies and instrumentalities and by any person described in 
  2.22  and subject to the conditions provided in section 297A.25, 
  2.23  subdivision 18.  
  2.24     (2) Purchase or use of any motor vehicle by any person who 
  2.25  was a resident of another state at the time of the purchase and 
  2.26  who subsequently becomes a resident of Minnesota, provided the 
  2.27  purchase occurred more than 60 days prior to the date such 
  2.28  person began residing in the state of Minnesota.  
  2.29     (3) Purchase or use of any motor vehicle by any person 
  2.30  making a valid election to be taxed under the provisions of 
  2.31  section 297A.211.  
  2.32     (4) Purchase or use of any motor vehicle previously 
  2.33  registered in the state of Minnesota when such transfer 
  2.34  constitutes a transfer within the meaning of section 351 or 721 
  2.35  of the Internal Revenue Code of 1986, as amended through 
  2.36  December 31, 1988.  
  3.1      (5) Purchase or use of any vehicle owned by a resident of 
  3.2   another state and leased to a Minnesota based private or for 
  3.3   hire carrier for regular use in the transportation of persons or 
  3.4   property in interstate commerce provided the vehicle is titled 
  3.5   in the state of the owner or secured party, and that state does 
  3.6   not impose a sales tax or sales tax on motor vehicles used in 
  3.7   interstate commerce.  
  3.8      (6) Purchase or use of a motor vehicle by a private 
  3.9   nonprofit or public educational institution for use as an 
  3.10  instructional aid in automotive training programs operated by 
  3.11  the institution.  "Automotive training programs" includes motor 
  3.12  vehicle body and mechanical repair courses but does not include 
  3.13  driver education programs.  
  3.14     (7) Purchase of a motor vehicle for use as an ambulance by 
  3.15  an ambulance service licensed under section 144E.10. 
  3.16     (8) Purchase of a motor vehicle by or for a public library, 
  3.17  as defined in section 134.001, subdivision 2, as a bookmobile or 
  3.18  library delivery vehicle. 
  3.19     (9) Purchase of a ready-mixed concrete truck. 
  3.20     (10) Purchase or use of a motor vehicle by a town for use 
  3.21  exclusively for road maintenance, including snowplows and dump 
  3.22  trucks, but not including automobiles, vans, or pickup trucks. 
  3.23     (11) Purchase or use of a motor vehicle by a nonprofit 
  3.24  organization.  For purposes of this clause, nonprofit 
  3.25  organization means a (i) corporation, society, association, 
  3.26  foundation, or institution organized and operated exclusively 
  3.27  for charitable, religious, or educational purposes if the motor 
  3.28  vehicle purchased is to be used in the performance of 
  3.29  charitable, religious, or educational functions, or (ii) a 
  3.30  senior citizen group or association of groups that in general 
  3.31  limits membership to persons who are either age 55 or older, or 
  3.32  physically disabled, and that is organized and operated 
  3.33  exclusively for pleasure, recreation, and other nonprofit 
  3.34  purposes, 
  3.35  no part of the net earnings of which inures to the benefit of 
  3.36  any private persons or shareholders. 
  4.1      Sec. 3.  [EFFECTIVE DATE.] 
  4.2      Sections 1 and 2 are effective for sales and purchases on 
  4.3   or after July 1, 2000.