HF 394

as introduced - 87th Legislature (2011 - 2012) Posted on 02/07/2011 09:55am

A bill for an act
relating to taxation; sales and use; expanding exemption for public safety radio
systems; amending Minnesota Statutes 2010, sections 297A.70, subdivision 8;
297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to
read:

Subd. 8.

deleted text begin Regionwide deleted text end Public safety radio communication deleted text begin system deleted text end new text begin and data
systems new text end ; products and services.

Products and services including, but not limited to,
end user equipment used for construction, ownership, operation, maintenance, and
enhancement of the deleted text begin backbone system of the regionwide deleted text end public safety radio communication
deleted text begin system established under sections 403.21 to 403.40, deleted text end new text begin and data systems new text end are exempt. deleted text begin For
purposes of this subdivision, backbone system is defined in section 403.21, subdivision 9.
This subdivision is effective for purchases, sales, storage, use, or consumption for use in
the first and second phases of the system, as defined in section 403.21, subdivisions 3,
10, and 11, that portion of the third phase of the system that is located in the southeast
district of the State Patrol and the counties of Benton, Sherburne, Stearns, and Wright, and
that portion of the system that is located in Itasca County.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2010. Purchasers may apply for a refund of tax paid for qualifying
purchases under this subdivision made prior to July 1, 2011, in the manner provided
by Minnesota Statutes, section 297A.75.
new text end

Sec. 2.

Minnesota Statutes 2010, 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) 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) elevators and 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 and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

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

(10) 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;

(11) tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41;

(12) commuter rail vehicle and repair parts under section 297A.70, subdivision
3, clause (11);

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

(14) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section 297A.71, subdivision 41; deleted text begin and
deleted text end

(15) materials, supplies, and equipment for construction, improvement, or expansion
of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision
42 new text begin ; and
new text end

new text begin (16) products and services for public safety radio communication and data systems
exempt under section 297A.70, subdivision 8, purchased before July 1, 2011 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:

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) and (7), 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;

(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying
business; and

(8) for subdivision 1, clauses (12) deleted text begin and deleted text end new text begin , new text end (13), new text begin and (16), new text end the applicant must be the
governmental entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end