HF 1206

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; sales and use; exempting
construction materials used to construct certain
utility facilities; amending Minnesota Statutes 2004,
sections 297A.71, by adding a subdivision; 297A.75,
subdivisions 1, 2, 3.

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

Section 1.

Minnesota Statutes 2004, section 297A.71, is
amended by adding a subdivision to read:

new text begin Subd. 33. new text end

new text begin Municipal utilities. new text end

new text begin Materials and supplies
used or consumed in, and equipment incorporated into, the
construction, improvement, or expansion of electric generation
and related facilities used pursuant to a joint power purchase
agreement to meet the biomass energy mandate in section
216B.2424 are exempt if the owner or owners of the facilities
are a municipal electric utility or utilities or a joint venture
of municipal electric utilities. The tax must be imposed and
collected as if the rate under section 297A.62, subdivision 1,
applied and then refunded under section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after January 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, 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) chair lifts, ramps, elevators, and associated 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) materials, supplies, fixtures, furnishings, and
equipment for a county law enforcement and family service center
under section 297A.71, subdivision 26; deleted text begin and
deleted text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after January 1, 2005.
new text end

Sec. 3.

Minnesota Statutes 2004, 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), (7), and (8), 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; deleted text begin and
deleted text end

(5) for subdivision 1, clause (9), the owner of the
qualified low-income housing project new text begin ; and
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after January 1, 2005.
new text end

Sec. 4.

Minnesota Statutes 2004, section 297A.75,
subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include
sufficient information to permit the commissioner to verify the
tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clause (4), (5), (6), (7), (8),
deleted text begin or deleted text end (9), new text begin or (10), new text end the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless
otherwise specifically provided by this subdivision. The
provisions of sections 289A.40 and 289A.50 apply to refunds
under this section.

(b) An applicant may not file more than two applications
per calendar year for refunds for taxes paid on capital
equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after January 1, 2005.
new text end