HF 487

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 01:57pm

A bill for an act
relating to taxation; sales and use; providing exemptions for nonprofit animal
shelters; amending Minnesota Statutes 2016, section 297A.70, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Animal shelters. new text end

new text begin (a) For purposes of this subdivision, the term "animal shelter"
means a nonprofit organization engaged in the business of rescuing, sheltering, and finding
homes for unwanted animals.
new text end

new text begin (b) Purchases made by an animal shelter are exempt if the purchases are used directly
in the activities of rescuing, sheltering, and finding homes for unwanted animals. The
exemption under this paragraph does not apply to the following purchases:
new text end

new text begin (1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;
new text end

new text begin (2) construction materials purchased by an animal shelter or their contractors to be used
in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;
new text end

new text begin (3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
subdivision 2; and
new text end

new text begin (4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
new text end

new text begin (c) The sale or adoption of unwanted animals by an animal shelter and the sale of
associated animal supplies and equipment by an animal shelter are exempt.
new text end

new text begin (d) Sales made by and events run by an animal shelter for fund-raising purposes are
exempt. Exempt sales include the sale of prepared food, candy, and soft drinks at a
fund-raising event. The exemption under this paragraph is subject to the following limits:
new text end

new text begin (1) gross receipts from all fund-raising sales are taxable if the total fund-raising by the
animal shelter exceeds 24 days per year;
new text end

new text begin (2) it does not apply to fund-raising events conducted on premises leased for more than
five days but less than 30 days; and
new text end

new text begin (3) it does not apply to admission charges for events involving bingo or other gambling
activities or to charges for use of amusement devices involving bingo or other gambling
activities.
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, 2017.
new text end