HF 931

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; extending the same sales tax and 
  1.3             motor vehicle excise tax exemptions applicable to 
  1.4             nonpublic schools to school districts; amending 
  1.5             Minnesota Statutes 2000, sections 297A.70, subdivision 
  1.6             2; and 297B.03. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 297A.70, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [SALES TO GOVERNMENT.] (a) All sales, except 
  1.11  those listed in paragraph (b), to the following governments and 
  1.12  political subdivisions, or to the listed agencies or 
  1.13  instrumentalities of governments and political subdivisions, are 
  1.14  exempt: 
  1.15     (1) the United States and its agencies and 
  1.16  instrumentalities; 
  1.17     (2) school districts, the University of Minnesota, state 
  1.18  universities, community colleges, technical colleges, state 
  1.19  academies, the Perpich Minnesota center for arts education, and 
  1.20  an instrumentality of a political subdivision that is accredited 
  1.21  as an optional/special function school by the North Central 
  1.22  Association of Colleges and Schools; 
  1.23     (3) hospitals and nursing homes owned and operated by 
  1.24  political subdivisions of the state; 
  1.25     (4) other states or political subdivisions of other states, 
  1.26  if the sale would be exempt from taxation if it occurred in that 
  2.1   state; and 
  2.2      (5) sales to public libraries, public library systems, 
  2.3   multicounty, multitype library systems as defined in section 
  2.4   134.001, county law libraries under chapter 134A, state agency 
  2.5   libraries, the state library under section 480.09, and the 
  2.6   legislative reference library.  
  2.7      (b) This exemption does not apply to the sales of the 
  2.8   following products and services: 
  2.9      (1) building, construction, or reconstruction materials 
  2.10  purchased by a contractor or a subcontractor as a part of a 
  2.11  lump-sum contract or similar type of contract with a guaranteed 
  2.12  maximum price covering both labor and materials for use in the 
  2.13  construction, alteration, or repair of a building or facility; 
  2.14     (2) construction materials purchased by tax exempt entities 
  2.15  or their contractors to be used in constructing buildings or 
  2.16  facilities which will not be used principally by the tax exempt 
  2.17  entities; 
  2.18     (3) the leasing of a motor vehicle as defined in section 
  2.19  297B.01, subdivision 5, except for leases entered into by the 
  2.20  United States or its agencies or instrumentalities or as 
  2.21  provided in paragraph (c) for school districts; or 
  2.22     (4) meals and lodging as defined under section 297A.61, 
  2.23  subdivisions 3, paragraph (d), and 16, paragraph (c), except for 
  2.24  meals and lodging purchased directly by the United States or its 
  2.25  agencies or instrumentalities. 
  2.26     (c) This exemption applies to the leasing of a motor 
  2.27  vehicle as defined in section 297B.01, subdivision 5, by a 
  2.28  school district, but only if the vehicle is: 
  2.29     (1) a truck, as defined in section 168.011, a bus, as 
  2.30  defined in section 168.011, or a passenger automobile, as 
  2.31  defined in section 168.011, if the automobile is designed and 
  2.32  used for carrying more than nine persons including the driver; 
  2.33  and 
  2.34     (2) intended to be used primarily to transport tangible 
  2.35  personal property or individuals, other than employees, to whom 
  2.36  the school district provides service in performing its 
  3.1   educational purpose. 
  3.2      (d) As used in this subdivision, "school districts" means 
  3.3   public school entities and districts of every kind and nature 
  3.4   organized under the laws of the state of Minnesota, and any 
  3.5   instrumentality of a school district, as defined in section 
  3.6   471.59. 
  3.7      [EFFECTIVE DATE.] This section is effective the day 
  3.8   following final enactment and applies to sales or purchases 
  3.9   occurring after May 30, 2001. 
  3.10     Sec. 2.  Minnesota Statutes 2000, section 297B.03, is 
  3.11  amended to read: 
  3.12     297B.03 [EXEMPTIONS.] 
  3.13     There is specifically exempted from the provisions of this 
  3.14  chapter and from computation of the amount of tax imposed by it 
  3.15  the following:  
  3.16     (1) purchase or use, including use under a lease purchase 
  3.17  agreement or installment sales contract made pursuant to section 
  3.18  465.71, of any motor vehicle by the United States and its 
  3.19  agencies and instrumentalities and by any person described in 
  3.20  and subject to the conditions provided in section 297A.25, 
  3.21  subdivision 18; 
  3.22     (2) purchase or use of any motor vehicle by any person who 
  3.23  was a resident of another state at the time of the purchase and 
  3.24  who subsequently becomes a resident of Minnesota, provided the 
  3.25  purchase occurred more than 60 days prior to the date such 
  3.26  person began residing in the state of Minnesota; 
  3.27     (3) purchase or use of any motor vehicle by any person 
  3.28  making a valid election to be taxed under the provisions of 
  3.29  section 297A.211; 
  3.30     (4) purchase or use of any motor vehicle previously 
  3.31  registered in the state of Minnesota when such transfer 
  3.32  constitutes a transfer within the meaning of section 118, 331, 
  3.33  332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 
  3.34  1563(a) of the Internal Revenue Code of 1986, as amended through 
  3.35  December 31, 1999; 
  3.36     (5) purchase or use of any vehicle owned by a resident of 
  4.1   another state and leased to a Minnesota based private or for 
  4.2   hire carrier for regular use in the transportation of persons or 
  4.3   property in interstate commerce provided the vehicle is titled 
  4.4   in the state of the owner or secured party, and that state does 
  4.5   not impose a sales tax or sales tax on motor vehicles used in 
  4.6   interstate commerce; 
  4.7      (6) purchase or use of a motor vehicle by a private 
  4.8   nonprofit or public educational institution for use as an 
  4.9   instructional aid in automotive training programs operated by 
  4.10  the institution.  "Automotive training programs" includes motor 
  4.11  vehicle body and mechanical repair courses but does not include 
  4.12  driver education programs; 
  4.13     (7) purchase of a motor vehicle for use as an ambulance by 
  4.14  an ambulance service licensed under section 144E.10; 
  4.15     (8) purchase of a motor vehicle by or for a public library, 
  4.16  as defined in section 134.001, subdivision 2, as a bookmobile or 
  4.17  library delivery vehicle; 
  4.18     (9) purchase of a ready-mixed concrete truck; 
  4.19     (10) purchase or use of a motor vehicle by a town for use 
  4.20  exclusively for road maintenance, including snowplows and dump 
  4.21  trucks, but not including automobiles, vans, or pickup trucks; 
  4.22     (11) purchase or use of a motor vehicle by a school 
  4.23  district, as defined in section 297A.70, subdivision 2, or by a 
  4.24  corporation, society, association, foundation, or institution 
  4.25  organized and operated exclusively for charitable, religious, or 
  4.26  educational purposes, but only if the vehicle is: 
  4.27     (i) a truck, as defined in section 168.011, a bus, as 
  4.28  defined in section 168.011, or a passenger automobile, as 
  4.29  defined in section 168.011, if the automobile is designed and 
  4.30  used for carrying more than nine persons including the driver; 
  4.31  and 
  4.32     (ii) intended to be used primarily to transport tangible 
  4.33  personal property or individuals, other than employees, to whom 
  4.34  the school district or organization provides service in 
  4.35  performing its charitable, religious, or educational purpose. 
  4.36     [EFFECTIVE DATE.] This section is effective the day 
  5.1   following final enactment and applies to sales or purchases 
  5.2   occurring after May 30, 2001.