HF 466

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; sales and use; exempting 
  1.3             materials used in providing taxable services; amending 
  1.4             Minnesota Statutes 1996, section 297A.25, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 297A.25, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 62.  [MATERIALS USED IN PROVIDING TAXABLE 
  1.10  SERVICES.] The gross receipts from the sale of and the storage, 
  1.11  use, or consumption of all materials, including chemicals, 
  1.12  fuels, petroleum products, lubricants, packaging materials, 
  1.13  seeds, trees, fertilizers, herbicides, electricity, gas, and 
  1.14  steam, used or consumed in the provision of a taxable service 
  1.15  intended to be sold ultimately at retail, are exempt.  
  1.16  Materials, including chemicals, fuels, and electricity purchased 
  1.17  by persons engaged in providing a taxable service to treat waste 
  1.18  generated as a result of providing the service are included in 
  1.19  this exemption.  Machinery, equipment, implements, tools, 
  1.20  accessories, appliances, contrivances, furniture, and fixtures, 
  1.21  used in such production and fuel, electricity, gas, or steam 
  1.22  used for space heating or lighting, are not included within this 
  1.23  exemption; however, accessory tools, equipment, and other 
  1.24  short-lived items, which are separate detachable units used in 
  1.25  providing the service, where such items have an ordinary useful 
  2.1   life of less than 12 months, are included within the exemption. 
  2.2      For purposes of this subdivision, "taxable service" means 
  2.3   the services listed in section 297A.01, subdivision 3, clause 
  2.4   (i), except for solid waste management services as described in 
  2.5   section 297A.45. 
  2.6      Sec. 2.  [EFFECTIVE DATE.] 
  2.7      Section 1 is effective for sales and purchases after June 
  2.8   30, 1997.