HF 1216

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; extending the sales tax 
  1.3             exemption applicable to electricity used on farms; 
  1.4             amending Minnesota Statutes 1994, section 297A.25, 
  1.5             subdivision 9. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 297A.25, 
  1.8   subdivision 9, is amended to read: 
  1.9      Subd. 9.  [MATERIALS CONSUMED IN PRODUCTION.] The gross 
  1.10  receipts from the sale of and the storage, use, or consumption 
  1.11  of all materials, including chemicals, fuels, petroleum 
  1.12  products, lubricants, packaging materials, including returnable 
  1.13  containers used in packaging food and beverage products, feeds, 
  1.14  seeds, fertilizers, electricity, gas and steam, used or consumed 
  1.15  in agricultural or industrial production of personal property 
  1.16  intended to be sold ultimately at retail, whether or not the 
  1.17  item so used becomes an ingredient or constituent part of the 
  1.18  property produced are exempt.  Seeds, trees, fertilizers, and 
  1.19  herbicides purchased for use by farmers in the Conservation 
  1.20  Reserve Program under United States Code, title 16, section 
  1.21  590h, the Integrated Farm Management Program under section 1627 
  1.22  of Public Law Number 101-624, the Wheat and Feed Grain Programs 
  1.23  under sections 301 to 305 and 401 to 405 of Public Law Number 
  1.24  101-624, and the conservation reserve program under sections 
  1.25  103F.505 to 103F.531, are included in this 
  2.1   exemption.  Electricity used for farming purposes such as 
  2.2   operation of barn ventilator fans, cow trainers, lights for 
  2.3   barns, milk houses, or farmyards, storage or preservation of 
  2.4   agricultural products, operation of milk coolers and bulk tanks, 
  2.5   and heating water for cleaning milking machines or similar 
  2.6   equipment, is exempt.  Chemicals used for cleaning food 
  2.7   processing machinery and equipment are included in this 
  2.8   exemption.  Materials, including chemicals, fuels, and 
  2.9   electricity purchased by persons engaged in agricultural or 
  2.10  industrial production to treat waste generated as a result of 
  2.11  the production process are included in this exemption.  Such 
  2.12  production shall include, but is not limited to, research, 
  2.13  development, design or production of any tangible personal 
  2.14  property, manufacturing, processing (other than by restaurants 
  2.15  and consumers) of agricultural products whether vegetable or 
  2.16  animal, commercial fishing, refining, smelting, reducing, 
  2.17  brewing, distilling, printing, mining, quarrying, lumbering, 
  2.18  generating electricity and the production of road building 
  2.19  materials.  Such production shall not include painting, 
  2.20  cleaning, repairing or similar processing of property except as 
  2.21  part of the original manufacturing process.  Machinery, 
  2.22  equipment, implements, tools, accessories, appliances, 
  2.23  contrivances, furniture and fixtures, used in such production 
  2.24  and fuel, electricity, gas or steam used for space heating or 
  2.25  lighting, are not included within this exemption; however, 
  2.26  accessory tools, equipment and other short lived items, which 
  2.27  are separate detachable units used in producing a direct effect 
  2.28  upon the product, where such items have an ordinary useful life 
  2.29  of less than 12 months, are included within the exemption 
  2.30  provided herein.  Electricity used to make snow for outdoor use 
  2.31  for ski hills, ski slopes, or ski trails is included in this 
  2.32  exemption. 
  2.33     Sec. 2.  [EFFECTIVE DATE.] 
  2.34     Section 1 is effective for electricity used or consumed 
  2.35  after June 30, 1995.