HF 573

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; sales and use; providing that 
  1.3             certain sales of grass seed, fertilizers, and lawn 
  1.4             chemicals are considered purchases for resale; 
  1.5             amending Minnesota Statutes 1994, section 297A.01, 
  1.6             subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 297A.01, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  A "retail sale" or "sale at retail" means a sale 
  1.11  for any purpose other than resale in the regular course of 
  1.12  business.  Property utilized by the owner only by leasing such 
  1.13  property to others or by holding it in an effort to so lease it, 
  1.14  and which is put to no use by the owner other than resale after 
  1.15  such lease or effort to lease, shall be considered property 
  1.16  purchased for resale.  Master computer software programs that 
  1.17  are purchased and used to make copies for sale or lease are 
  1.18  considered property purchased for resale.  Grass seed and 
  1.19  fertilizer, herbicides, fungicides, and insecticides, when they 
  1.20  are purchased for use or application in the furnishing of lawn 
  1.21  care services taxable under subdivision 3, paragraph (j), item 
  1.22  (vi), shall be considered property purchased for resale, without 
  1.23  regard to whether the item is separately itemized or included in 
  1.24  the sales price of the lawn care services.  Sales of building 
  1.25  materials, supplies and equipment to owners, contractors, 
  1.26  subcontractors or builders for the erection of buildings or the 
  2.1   alteration, repair or improvement of real property are "retail 
  2.2   sales" or "sales at retail" in whatever quantity sold and 
  2.3   whether or not for purpose of resale in the form of real 
  2.4   property or otherwise.  A sale of carpeting, linoleum, or other 
  2.5   similar floor covering which includes installation of the 
  2.6   carpeting, linoleum, or other similar floor covering is a 
  2.7   contract for the improvement of real property.  A sale of 
  2.8   shrubbery, plants, sod, trees, and similar items that includes 
  2.9   installation of the shrubbery, plants, sod, trees, and similar 
  2.10  items is a contract for the improvement of real property.  
  2.11  Aircraft and parts for the repair thereof purchased by a 
  2.12  nonprofit, incorporated flying club or association utilized 
  2.13  solely by the corporation by leasing such aircraft to 
  2.14  shareholders of the corporation shall be considered property 
  2.15  purchased for resale.  The leasing of the aircraft to the 
  2.16  shareholders by the flying club or association shall be 
  2.17  considered a sale. 
  2.18     Leasing of aircraft utilized by a lessee for the purpose of 
  2.19  leasing to others, whether or not the lessee also utilizes the 
  2.20  aircraft for flight instruction where no separate charge is made 
  2.21  for aircraft rental or for charter service, shall be considered 
  2.22  a purchase for resale; provided, however, that a proportionate 
  2.23  share of the lease payment reflecting use for flight instruction 
  2.24  or charter service is subject to tax pursuant to section 297A.14.
  2.25     Sec. 2.  [EFFECTIVE DATE.] 
  2.26     Section 1 is effective for sales after June 30, 1995.