1.1                          A bill for an act
  1.2             relating to sales tax; directing the amateur sports 
  1.3             commission to certify qualifying junior golf programs; 
  1.4             providing a partial refund of tax paid by golf 
  1.5             facilities with qualifying programs for juniors; 
  1.6             amending Minnesota Statutes 1996, section 297A.15, by 
  1.7             adding a subdivision; proposing coding for new law in 
  1.8             Minnesota Statutes, chapters 240A; and 297A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [240A.12] [QUALIFYING JUNIOR GOLF PROGRAMS.] 
  1.11     Subdivision 1.  [PROGRAM STANDARDS.] The commission shall, 
  1.12  in consultation with the Minnesota golf association, establish 
  1.13  standards for junior instructional golf programs to be operated 
  1.14  by golf courses and other golf facilities to qualify for the 
  1.15  sales tax refund under section 297A.2574.  These standards must 
  1.16  set forth the requirements for the program, such as 
  1.17  qualifications of instructors, topics to be covered, minimum 
  1.18  number of hours of instruction per season or course of 
  1.19  instruction, or any other requirements the commission determines 
  1.20  to be appropriate. 
  1.21     Subd. 2.  [OPEN TO PUBLIC.] To qualify, a junior 
  1.22  instructional golf program must be open to any individual of the 
  1.23  appropriate age and may not be limited to members, relatives of 
  1.24  members, or individuals nominated by members of a private club 
  1.25  or course.  In addition, selection standards for participation 
  1.26  in a qualifying junior instructional program may not favor or 
  1.27  grant preference to members, relatives of members, or 
  2.1   individuals nominated by members. 
  2.2      Subd. 3.  [APPLICATION FOR DESIGNATION.] (a) An operator of 
  2.3   a golf course or other facility may apply to the commission for 
  2.4   designation of its program as a qualifying junior instructional 
  2.5   golf program.  The commission shall establish the form and 
  2.6   procedures for applying for designation. 
  2.7      (b) The commission shall designate as qualifying junior 
  2.8   programs each program that satisfies the standards for junior 
  2.9   instructional golf programs under subdivision 1 and that is open 
  2.10  to the public under subdivision 2. 
  2.11     (c) Each year, the commission shall provide to the 
  2.12  commissioner of revenue a list of the qualifying junior golf 
  2.13  programs that it has designated.  The list must be in the form 
  2.14  and include the information requested by the commissioner. 
  2.15     Sec. 2.  Minnesota Statutes 1996, section 297A.15, is 
  2.16  amended by adding a subdivision to read: 
  2.17     Subd. 8.  [REFUND FOR GOLF FACILITIES.] (a) The tax on the 
  2.18  gross receipts from the sale of items exempt under section 
  2.19  297A.2574, must be imposed and collected as if the sale were 
  2.20  taxable and the rate under section 297A.02, subdivision 1, 
  2.21  applied. 
  2.22     (b) Each year by March 1 for the previous calendar year, a 
  2.23  qualifying golf facility may apply to the commissioner of 
  2.24  revenue for a refund of the tax on forms prescribed by the 
  2.25  commissioner.  Upon application, the commissioner shall pay to 
  2.26  the facility a refund equal to the amount of the gross receipts 
  2.27  that are exempt under section 297A.2574.  The application must 
  2.28  include sufficient information to permit the commissioner to 
  2.29  verify the sales tax paid.  If the tax was paid by a contractor, 
  2.30  application must be made by the golf facility for the sales tax 
  2.31  paid by the contractor.  The contractor must furnish to the golf 
  2.32  facility a statement of the cost of building materials and the 
  2.33  sales taxes paid on the materials. 
  2.34     (c) Interest must be paid on the refund at the rate in 
  2.35  section 270.76 from 60 days after the date the refund claim is 
  2.36  filed with the commissioner. 
  3.1      (d) The amount required to make the refunds is annually 
  3.2   appropriated to the commissioner. 
  3.3      Sec. 3.  [297A.2574] [GOLF FACILITIES EXEMPTION.] 
  3.4      Subdivision 1.  [EXEMPTION.] A qualifying golf facility is 
  3.5   entitled to a refund of the tax paid under this chapter on 
  3.6   qualifying purchases in the amount provided by subdivision 4. 
  3.7      Subd. 2.  [QUALIFYING GOLF FACILITY.] (a) A golf facility 
  3.8   means any of the following: 
  3.9      (1) a golf course, including publicly owned, privately 
  3.10  owned facilities open to the public, and private clubs; 
  3.11     (2) a driving range; and 
  3.12     (3) training or similar facility providing instruction in 
  3.13  golf. 
  3.14     (b) A qualifying golf facility must: 
  3.15     (1) operate a qualifying junior instructional golf program 
  3.16  that has been designated by the Minnesota amateur sports 
  3.17  commission under section 240A.12; and 
  3.18     (2) regularly make its facility available for junior play. 
  3.19     Subd. 3.  [QUALIFYING PURCHASES.] Qualifying purchases are 
  3.20  purchases of materials, supplies, equipment, or goods for use in 
  3.21  the operation or improvement of the qualifying golf facility.  
  3.22  Qualifying purchases may be made either by the user or a 
  3.23  contractor. 
  3.24     Subd. 4.  [AMOUNT OF REFUND.] (a) The amount of the 
  3.25  purchases that are exempt from tax under this section equals: 
  3.26     (1) the qualifying purchases made during a calendar year in 
  3.27  which the qualifying golf facility operated a designated junior 
  3.28  instructional program, multiplied by 
  3.29     (2) the percentage use of the golf facility by juniors 
  3.30  during the calendar year. 
  3.31     (b) The percentage use means the number of rounds or other 
  3.32  measure of the amount of play by juniors divided by the total 
  3.33  amount of play by all users of the facilities.  Juniors means 
  3.34  individuals age 18 or younger.  Each golf facility must maintain 
  3.35  contemporaneous written records to account for the percentage 
  3.36  use by juniors.  These records must be produced or be available 
  4.1   for review and inspection by the commissioner of revenue upon 
  4.2   request. 
  4.3      Subd. 5.  [REFUND PROCEDURE.] A taxpayer may only claim the 
  4.4   exemption under this section as provided by section 297A.15, 
  4.5   subdivision 8. 
  4.6      Sec. 4.  [EFFECTIVE DATE.] 
  4.7      Section 1 is effective the day following final enactment. 
  4.8      Sections 2 and 3 are effective for purchases made after 
  4.9   December 31, 1998.