HF 108

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; sales and use; exempting sales 
  1.3             to political subdivisions of a state; amending 
  1.4             Minnesota Statutes 2000, section 297A.70, subdivisions 
  1.5             1, 2, and 3; and 297A.991, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 297A.70, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [SCOPE.] (a) The gross receipts from sales 
  1.10  of items to or by, and storage, distribution, use, or 
  1.11  consumption of items by the organizations listed in this section 
  1.12  are specifically exempted from the taxes imposed by this chapter.
  1.13     (b) Notwithstanding any law to the contrary enacted before 
  1.14  1992, only sales to governments and political subdivisions 
  1.15  listed in this section are exempt from the taxes imposed by this 
  1.16  chapter.  
  1.17     (c) "Sales" includes purchases under an installment 
  1.18  contract or lease purchase agreement under section 465.71. 
  1.19     [EFFECTIVE DATE.] This section is effective for sales and 
  1.20  purchases after June 30, 2001. 
  1.21     Sec. 2.  Minnesota Statutes 2000, section 297A.70, 
  1.22  subdivision 2, is amended to read: 
  1.23     Subd. 2.  [SALES TO GOVERNMENT.] (a) All sales, except 
  1.24  those listed in paragraph (b), to the following governments and 
  1.25  political subdivisions, or to the listed agencies or 
  2.1   instrumentalities of governments and political subdivisions, are 
  2.2   exempt: 
  2.3      (1) the United States and its agencies and 
  2.4   instrumentalities; 
  2.5      (2) school districts, the University of Minnesota, state 
  2.6   universities, community colleges, technical colleges, state 
  2.7   academies, and the Perpich Minnesota center for arts education, 
  2.8   and an instrumentality of a political subdivision that is 
  2.9   accredited as an optional/special function school by the North 
  2.10  Central Association of Colleges and Schools; 
  2.11     (3) hospitals and nursing homes owned and operated by 
  2.12  political subdivisions of the state political subdivisions of a 
  2.13  state and their agencies and instrumentalities; and 
  2.14     (4) other states or political subdivisions of other states, 
  2.15  if the sale would be exempt from taxation if it occurred in that 
  2.16  state; and 
  2.17     (5) sales to public libraries, public library systems, 
  2.18  multicounty, multitype library systems as defined in section 
  2.19  134.001, county law libraries under chapter 134A, state agency 
  2.20  libraries, the state library under section 480.09, and the 
  2.21  legislative reference library.  
  2.22     (b) This exemption does not apply to the sales of the 
  2.23  following products and services: 
  2.24     (1) building, construction, or reconstruction materials 
  2.25  purchased by a contractor or a subcontractor as a part of a 
  2.26  lump-sum contract or similar type of contract with a guaranteed 
  2.27  maximum price covering both labor and materials for use in the 
  2.28  construction, alteration, or repair of a building or facility; 
  2.29     (2) construction materials purchased by tax exempt entities 
  2.30  or their contractors to be used in constructing buildings or 
  2.31  facilities which will not be used principally by the tax exempt 
  2.32  entities; 
  2.33     (3) the leasing of a motor vehicle as defined in section 
  2.34  297B.01, subdivision 5, except for:  (i) leases entered into by 
  2.35  the United States or its agencies or instrumentalities or (ii) 
  2.36  leases entered into by a political subdivision of motor vehicles 
  3.1   exempt from tax under chapter 297B; or 
  3.2      (4) meals and lodging as defined under section 297A.61, 
  3.3   subdivisions 3, paragraph (d), and 16, paragraph (c), except for 
  3.4   meals and lodging purchased directly by the United States or its 
  3.5   agencies or instrumentalities. 
  3.6      (c) As used in this subdivision, "school districts" means 
  3.7   public school entities and districts of every kind and nature 
  3.8   organized under the laws of the state of Minnesota, and any 
  3.9   instrumentality of a school district, as defined in section 
  3.10  471.59. 
  3.11     [EFFECTIVE DATE.] This section is effective for sales and 
  3.12  purchases after June 30, 2001. 
  3.13     Sec. 3.  Minnesota Statutes 2000, section 297A.70, 
  3.14  subdivision 3, is amended to read: 
  3.15     Subd. 3.  [SALES OF CERTAIN GOODS AND SERVICES TO 
  3.16  GOVERNMENT.] (a) The following sales to or use by the specified 
  3.17  persons, governments, and political subdivisions of the state 
  3.18  are exempt: 
  3.19     (1) supplies and equipment used to provide medical care in 
  3.20  the operation of an ambulance service owned and operated by a 
  3.21  political subdivision of the state; 
  3.22     (2) repair and replacement parts for emergency rescue 
  3.23  vehicles, fire trucks, and fire apparatus to a political 
  3.24  subdivision; 
  3.25     (3) machinery and equipment, except for motor vehicles, 
  3.26  used directly for mixed municipal solid waste management 
  3.27  services at a solid waste disposal facility as defined in 
  3.28  section 115A.03, subdivision 10; 
  3.29     (4) chore and homemaking services to a political 
  3.30  subdivision of the state to be provided to elderly or disabled 
  3.31  individuals; 
  3.32     (5) telephone services to the department of administration 
  3.33  that are used to provide telecommunications services through the 
  3.34  intertechnologies revolving fund; 
  3.35     (6) (2) firefighter personal protective equipment as 
  3.36  defined in paragraph (b), if purchased or authorized by and for 
  4.1   the use of an organized fire department, fire protection 
  4.2   district, or fire company regularly charged with the 
  4.3   responsibility of providing fire protection to the state or a 
  4.4   political subdivision; 
  4.5      (7) (3) bullet-resistant body armor that provides the 
  4.6   wearer with ballistic and trauma protection, if purchased by a 
  4.7   law enforcement agency of the state or a political subdivision 
  4.8   of the state, or a licensed peace officer, as defined in section 
  4.9   626.84, subdivision 1; and 
  4.10     (8) (4) motor vehicles purchased or leased by political 
  4.11  subdivisions of the state if the vehicles are exempt from 
  4.12  registration under section 168.012, subdivision 1, paragraph 
  4.13  (b), or exempt from taxation under section 473.448; 
  4.14     (9) equipment designed to process, dewater, and recycle 
  4.15  biosolids for wastewater treatment facilities of political 
  4.16  subdivisions, and materials incidental to installation of that 
  4.17  equipment; and materials used to construct buildings to house 
  4.18  the equipment, if the materials are purchased after June 30, 
  4.19  1998, and before July 1, 2001; and 
  4.20     (10) sales to a town of gravel and of machinery, equipment, 
  4.21  and accessories, except motor vehicles, used exclusively for 
  4.22  road and bridge maintenance, and leases by a town of motor 
  4.23  vehicles exempt from tax under section 297B.03, clause (10). 
  4.24     (b) For purposes of this subdivision, "firefighters 
  4.25  personal protective equipment" means helmets, including face 
  4.26  shields, chin straps, and neck liners; bunker coats and pants, 
  4.27  including pant suspenders; boots; gloves; head covers or hoods; 
  4.28  wildfire jackets; protective coveralls; goggles; self-contained 
  4.29  breathing apparatus; canister filter masks; personal alert 
  4.30  safety systems; spanner belts; optical or thermal imaging search 
  4.31  devices; and all safety equipment required by the Occupational 
  4.32  Safety and Health Administration. 
  4.33     [EFFECTIVE DATE.] This section is effective for sales and 
  4.34  purchases after June 30, 2001. 
  4.35     Sec. 4.  Minnesota Statutes 2000, section 297A.991, 
  4.36  subdivision 2, is amended to read: 
  5.1      Subd. 2.  [COMMISSIONER OF FINANCE TO REPORT.] In reporting 
  5.2   the sales tax and sales tax on motor vehicles collections to the 
  5.3   United States Department of Commerce, the commissioner of 
  5.4   finance shall exclude the estimated amount from the sales and 
  5.5   motor vehicle collections.  Sales tax and Sales tax on motor 
  5.6   vehicles revenues received from political subdivisions must be 
  5.7   reported as intergovernmental grants or similar 
  5.8   intergovernmental revenue.  The amount of the sales tax and 
  5.9   sales tax on motor vehicles paid by state agencies must be 
  5.10  reported as reduced state expenditures. 
  5.11     [EFFECTIVE DATE.] This section is effective for sales and 
  5.12  purchases after June 30, 2001.