HF 3620

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; extending the sales and use tax 
  1.3             to pesticides; amending Minnesota Statutes 2001 
  1.4             Supplement, section 297A.69, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.7   297A.69, subdivision 2, is amended to read: 
  1.8      Subd. 2.  [MATERIALS CONSUMED IN AGRICULTURAL PRODUCTION.] 
  1.9   (a) Materials stored, used, or consumed in agricultural 
  1.10  production of personal property intended to be sold ultimately 
  1.11  at retail are exempt, whether or not the item becomes an 
  1.12  ingredient or constituent part of the property produced.  
  1.13  Materials that qualify for this exemption include, but are not 
  1.14  limited to, the following: 
  1.15     (1) feeds, seeds, trees, and fertilizers, and herbicides, 
  1.16  including when purchased for use by farmers in a federal or 
  1.17  state farm or conservation program; 
  1.18     (2) materials sold to a veterinarian to be used or consumed 
  1.19  in the care, medication, and treatment of agricultural 
  1.20  production animals and horses; 
  1.21     (3) chemicals, including chemicals used for cleaning food 
  1.22  processing machinery and equipment provided that herbicides, 
  1.23  fungicides, or pesticides as defined in section 18B.01 are not 
  1.24  exempt under this subdivision; 
  1.25     (4) materials, including chemicals, fuels, and electricity 
  2.1   purchased by persons engaged in agricultural production to treat 
  2.2   waste generated as a result of the production process; 
  2.3      (5) fuels, electricity, gas, and steam used or consumed in 
  2.4   the production process, except that electricity, gas, or steam 
  2.5   used for space heating, cooling, or lighting is exempt if (i) it 
  2.6   is in excess of the average climate control or lighting for the 
  2.7   production area, and (ii) it is necessary to produce that 
  2.8   particular product; 
  2.9      (6) petroleum products and lubricants; 
  2.10     (7) packaging materials, including returnable containers 
  2.11  used in packaging food and beverage products; and 
  2.12     (8) accessory tools and equipment that are separate 
  2.13  detachable units with an ordinary useful life of less than 12 
  2.14  months used in producing a direct effect upon the product. 
  2.15  Machinery, equipment, implements, tools, accessories, 
  2.16  appliances, contrivances, and furniture and fixtures, except 
  2.17  those listed in this clause are not included within this 
  2.18  exemption. 
  2.19     (b) For purposes of this subdivision, "agricultural 
  2.20  production" includes, but is not limited to, horticulture, 
  2.21  floriculture, maple syrup harvesting, and the raising of pets, 
  2.22  fur-bearing animals, research animals, horses, farmed cervidae 
  2.23  as defined in section 17.451, subdivision 2, llamas as defined 
  2.24  in section 17.455, subdivision 2, and ratitae as defined in 
  2.25  section 17.453, subdivision 3. 
  2.26     [EFFECTIVE DATE.] This section is effective for purchases 
  2.27  or sales made on or after July 1, 2002.