HF 1203

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; sales and use; exempting building materials, supplies, and
equipment used to construct, improve, and expand the facilities of a bioscience
institute; removing an obsolete provision; amending Minnesota Statutes 2006,
sections 297A.71, by adding a subdivision; 297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:

new text begin Subd. 40. new text end

new text begin Bioscience research facilities. new text end

new text begin (a) Building materials and supplies used
or consumed in, and equipment incorporated into, the construction, improvement, or
expansion of bioscience research facilities are exempt, if:
new text end

new text begin (1) the facilities are utilized by a research institute to conduct cancer research under
a collaboration agreement with the Mayo Clinic;
new text end

new text begin (2) the institute is an independent research unit of the University of Minnesota; and
new text end

new text begin (3) the facilities are owned by a public foundation.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner provided in section 297A.75.
new text end

new text begin (c) This subdivision is effective for sales and purchases occurring after June 30,
2006, and before January 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to sales and purchases made after June 30, 2006, and before January 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, 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) deleted text begin materials, supplies, fixtures, furnishings, and equipment for a county law
enforcement and family service center under section 297A.71, subdivision 26;
deleted text end

deleted text begin (9) deleted text end materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

deleted text begin (10) deleted text end new text begin (9) new text end materials, supplies, and equipment for municipal electric utility facilities
under section 297A.71, subdivision 35;

deleted text begin (11) deleted text end new text begin (10) new text end 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; deleted text begin and
deleted text end

deleted text begin (12) deleted text end new text begin (11) new text end tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) building materials, supplies, and equipment of bioscience research facilities
exempt under section 297A.71, subdivision 40.
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 2006, 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) deleted text begin , deleted text end new text begin and new text end (7) deleted text begin , and (8) deleted text end , 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 deleted text begin (9) deleted text end new text begin (8) new text end , the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause deleted text begin (10) deleted text end new text begin (9) new text end , the applicant must be a municipal electric
utility or a joint venture of municipal electric utilities; deleted text begin and deleted text end

(7) for subdivision 1, clauses deleted text begin (11) and (12) deleted text end new text begin (10) and (11) new text end , the owner of the qualifying
business deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) for subdivision 1, clause (12), the public foundation.
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