1.1                          A bill for an act
  1.2             relating to taxes; sales and use; exempting 
  1.3             construction materials and supplies used to comply 
  1.4             with the Americans with Disabilities Act; amending 
  1.5             Minnesota Statutes 1996, section 297A.25, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 297A.25, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 73.  [CONSTRUCTION MATERIALS USED IN COMPLYING WITH 
  1.11  THE AMERICANS WITH DISABILITIES ACT.] (a) Purchases of 
  1.12  construction materials and supplies are exempt from the sales 
  1.13  and use taxes imposed under this chapter, whether purchased by 
  1.14  the owner, or a contractor, subcontractor, or builder, if the 
  1.15  materials and supplies are used to modify an existing building 
  1.16  as required by Title III of the Americans with Disabilities Act. 
  1.17     (b) The portion of construction materials and supplies used 
  1.18  in new construction of a building, which is required to comply 
  1.19  with Title III of the Americans with Disabilities Act, is exempt 
  1.20  from the sales and use taxes imposed under this chapter.  The 
  1.21  commissioner shall develop rules that determine an average 
  1.22  portion of construction materials and supplies used in new 
  1.23  construction of various types of property that will be used to 
  1.24  calculate the portion of the construction materials and supplies 
  1.25  that are exempt for each project.  The commissioner must, at 
  1.26  minimum, differentiate between construction of industrial, 
  2.1   retail, lodging, other commercial, government, and multi-unit 
  2.2   residential property in determining the average portion of 
  2.3   construction materials and supplies exempt under this paragraph. 
  2.4      (c) The tax on sales of construction materials and supplies 
  2.5   in paragraphs (a) and (b) shall be imposed and collected as if 
  2.6   the rate under section 297A.02, subdivision 1, applied, and then 
  2.7   refunded in the manner provided for in section 297A.15, 
  2.8   subdivision 5.  The owner of the property must apply for the 
  2.9   refund, and the application must include sufficient information 
  2.10  to permit the commissioner to verify the sales tax paid on the 
  2.11  project.  The contractor, subcontractor, or builder must furnish 
  2.12  the owner with a statement of cost of the construction materials 
  2.13  and supplies and the sales tax paid on them. 
  2.14     Sec. 2.  [EFFECTIVE DATE.] 
  2.15     Section 1 is effective for sales made after June 30, 1999.