HF 4348

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 02:27pm

A bill for an act
relating to taxation; providing a sales tax exemption for certain construction
materials; appropriating money; amending Minnesota Statutes 2016, section
297A.71, by adding a subdivision; Minnesota Statutes 2017 Supplement, section
297A.75, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 51. new text end

new text begin Properties destroyed by fire. new text end

new text begin Building materials and supplies used in, and
equipment incorporated into, the construction or replacement of real property affected by,
and capital equipment to replace equipment destroyed in, the fire on March 11, 2018, in the
city of Mazeppa 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. For purposes of this subdivision, "capital equipment" includes durable equipment
used in a restaurant for food storage, preparation, and serving.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after March 11, 2018, and before January 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, 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) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

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

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

(8) 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;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;

(iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;

(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);

(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, deleted text begin subdivision deleted text end new text begin subdivisions new text end 49 new text begin and 51 new text end ; and

(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after March 11, 2018.
new text end

Sec. 3. new text begin CITY OF MAZEPPA; SPECIAL TIF RULE AUTHORIZATION.
new text end

new text begin If the city of Mazeppa elects, upon the adoption of a tax increment financing plan, to
redevelop an area of the city that was damaged by a fire on March 11, 2018, the rule under
this section applies to one or more tax increment financing districts established by the
authority. Notwithstanding Minnesota Statutes, section 469.174, subdivision 7, or any other
law to the contrary, upon request of the city, the assessor shall determine the reduction in
market value of properties in the district that is attributable to the fire. The county auditor
shall use the reduced market value in certifying the original net tax capacity of the district.
The authority to approve a tax increment financing plan and to establish a tax increment
financing district under this section expires July 1, 2020.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018, without local approval
under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2019 only is appropriated from the general fund to the commissioner
of revenue for a grant of $....... to the city of Mazeppa and a grant of $....... to Wabasha
County. The grants, which shall be paid by July 20, 2018, may be used for property tax
abatements and other costs incurred by public and private entities as a result of a fire in the
city of Mazeppa on March 11, 2018. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end