HF 125

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to sales tax; exempting construction
materials for certain joint government facilities;
amending Minnesota Statutes 2004, sections 297A.71, by
adding a subdivision; 297A.75.

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

Section 1.

Minnesota Statutes 2004, section 297A.71, is
amended by adding a subdivision to read:

new text begin Subd. 33. new text end

new text begin Construction materials; buildings under joint
power agreement. new text end

new text begin Materials, equipment, and supplies
incorporated into construction, expansion, or renovation of a
building used to provide local government services are exempt,
provided that:
new text end

new text begin (1) the building is owned and operated under a joint powers
agreement under section 471.59 or any other section that allows
two or more local governmental units to exercise their powers
jointly; and
new text end

new text begin (2) the joint powers agreement results in reduced costs of
providing an existing service or minimizes the cost of providing
a new service.
new text end

new text begin The tax must be calculated and paid as if the rate in section
297A.62, subdivision 1, was in effect and a refund applied for
in the manner prescribed in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297A.75, is
amended to read:

297A.75 REFUND; APPROPRIATION.

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) capital equipment exempt under section 297A.68,
subdivision 5;

(2) building materials for an agricultural processing
facility exempt under section 297A.71, subdivision 13;

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

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

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

(6) chair lifts, ramps, elevators, and associated building
materials exempt under section 297A.71, subdivision 12;

(7) building materials for the Long Lake Conservation
Center exempt under section 297A.71, subdivision 17;

(8) materials, supplies, fixtures, furnishings, and
equipment for a county law enforcement and family service center
under section 297A.71, subdivision 26; deleted text begin and
deleted text end

(9) materials and supplies for qualified low-income housing
under section 297A.71, subdivision 23 new text begin ; and
new text end

new text begin (10) materials, supplies, and equipment incorporated into a
government building under section 297A.71, subdivision 33 new text end .

Subd. 2.

Refund; eligible persons.

Upon application on
forms prescribed by the commissioner, a refund equal to the tax
paid on the gross receipts of the exempt items must be paid to
the applicant. Only the following persons may apply for the
refund:

(1) for subdivision 1, clauses (1) to (3), the applicant
must be the purchaser;

(2) for subdivision 1, clauses (4), (7), and (8), the
applicant must be the governmental subdivision;

(3) for subdivision 1, clause (5), the applicant must be
the recipient of the benefits provided in United States Code,
title 38, chapter 21;

(4) for subdivision 1, clause (6), the applicant must be
the owner of the homestead property; deleted text begin and
deleted text end

(5) for subdivision 1, clause (9), the owner of the
qualified low-income housing project new text begin ; and
new text end

new text begin (6) for subdivision 1, clause (10), the owner or owners of
the building under the joint powers agreement new text end .

Subd. 3.

Application.

(a) The application must include
sufficient information to permit the commissioner to verify the
tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clause (4), (5), (6), (7), (8),
deleted text begin or deleted text end (9), new text begin or (10), new text end the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless
otherwise specifically provided by this subdivision. new text begin For tax
paid under subdivision 1, clause (10), the application must
include any information that the commissioner deems necessary to
determine if the project meets the requirements under section
297A.71, subdivision 33. The commissioner's judgment on whether
these conditions are met is final. new text end The provisions of sections
289A.40 and 289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications
per calendar year for refunds for taxes paid on capital
equipment exempt under section 297A.68, subdivision 5.

Subd. 4.

Interest.

Interest must be paid on the refund
at the rate in section 270.76 from 90 days after the refund
claim is filed with the commissioner for taxes paid under
subdivision 1.

Subd. 5.

Appropriation.

The amount required to make the
refunds is annually appropriated to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds on
sales and purchases made after June 30, 2005.
new text end