HF 1587

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting certain airline meals 
  1.3             from sales taxation; modifying the carryover for the 
  1.4             jobs credit; amending Minnesota Statutes 2002, 
  1.5             sections 290.06, subdivision 24; 297A.82, subdivision 
  1.6             4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 290.06, 
  1.9   subdivision 24, is amended to read: 
  1.10     Subd. 24.  [CREDIT FOR JOB CREATION.] (a) A corporation 
  1.11  that leases and operates a heavy maintenance base for aircraft 
  1.12  that is owned by the state of Minnesota or one of its political 
  1.13  subdivisions, or an engine repair facility described in section 
  1.14  116R.02, subdivision 6, or both, may take a credit against the 
  1.15  tax due under this chapter.  
  1.16     (b) For the first taxable year when the facility has been 
  1.17  in operation for at least three consecutive months, the credit 
  1.18  is equal to $5,000 multiplied by the number of persons employed 
  1.19  by the corporation on a full-time basis at the facility on the 
  1.20  last day of the taxable year, not to exceed the number of 
  1.21  persons employed by the corporation on a full-time basis at the 
  1.22  facility on the date 90 days before the last day of the taxable 
  1.23  year.  For each of the succeeding four taxable years, the credit 
  1.24  is equal to $5,000 multiplied by the number of persons employed 
  1.25  by the corporation on a full-time basis at the facility on the 
  1.26  last day of the taxable year, not to exceed the number of 
  2.1   persons employed by the corporation on a full-time basis at the 
  2.2   facility on the date 90 days before the last day of the taxable 
  2.3   year.  
  2.4      (c) For the first taxable year in which the credit is 
  2.5   allowed for the facility, the credit must not exceed 80 percent 
  2.6   of the wages paid to or incurred for persons employed by the 
  2.7   taxpayer at the facility during the taxable year.  For the 
  2.8   succeeding four taxable years, the credit must not exceed 20 
  2.9   percent of the wages paid to or incurred for persons employed by 
  2.10  the taxpayer at the facility during the taxable year.  For 
  2.11  purposes of this section, "wages" has the meaning given under 
  2.12  section 3121(b) of the Internal Revenue Code, except the 
  2.13  limitation to the contribution and benefit base does not apply. 
  2.14     (d) If the credit provided under this subdivision exceeds 
  2.15  the tax liability of the corporation for the taxable year, the 
  2.16  excess amount of the credit may be carried over to each of the 
  2.17  ten taxable years succeeding the taxable year.  The entire 
  2.18  amount of the credit must be carried to the earliest taxable 
  2.19  year to which the amount may be carried.  The unused portion of 
  2.20  the credit must be carried to the following taxable year.  No 
  2.21  credit may be carried to a taxable year more than ten 20 years 
  2.22  after the taxable year in which the credit was earned. 
  2.23     (e) If an unused portion of the credit remains at the end 
  2.24  of the carryover period under paragraph (d), the commissioner 
  2.25  shall refund the unused portion to the taxpayer.  The provisions 
  2.26  of this paragraph do not apply if the corporation that earned 
  2.27  the credit under this subdivision or a successor in interest to 
  2.28  the corporation filed for bankruptcy protection. 
  2.29     [EFFECTIVE DATE.] This section is effective for taxable 
  2.30  years beginning after December 31, 2003. 
  2.31     Sec. 2.  Minnesota Statutes 2002, section 297A.82, 
  2.32  subdivision 4, is amended to read: 
  2.33     Subd. 4.  [EXEMPTIONS.] (a) The following transactions are 
  2.34  exempt from the tax imposed in this chapter to the extent 
  2.35  provided. 
  2.36     (b) The purchase or use of aircraft previously registered 
  3.1   in Minnesota by a corporation or partnership is exempt if the 
  3.2   transfer constitutes a transfer within the meaning of section 
  3.3   351 or 721 of the Internal Revenue Code. 
  3.4      (c) The sale to or purchase, storage, use, or consumption 
  3.5   by a licensed aircraft dealer of an aircraft for which a 
  3.6   commercial use permit has been issued pursuant to section 
  3.7   360.654 is exempt, if the aircraft is resold while the permit is 
  3.8   in effect. 
  3.9      (d) Airflight equipment when sold to, or purchased, stored, 
  3.10  used, or consumed by airline companies, as defined in section 
  3.11  270.071, subdivision 4, is exempt.  For purposes of this 
  3.12  subdivision, "airflight equipment" includes airplanes and parts 
  3.13  necessary for the repair and maintenance of such airflight 
  3.14  equipment, and flight simulators, but does not include airplanes 
  3.15  with a gross weight of less than 30,000 pounds that are used on 
  3.16  intermittent or irregularly timed flights. 
  3.17     (e) Sales of, and the storage, distribution, use, or 
  3.18  consumption of aircraft, as defined in section 360.511 and 
  3.19  approved by the Federal Aviation Administration, and which the 
  3.20  seller delivers to a purchaser outside Minnesota or which, 
  3.21  without intermediate use, is shipped or transported outside 
  3.22  Minnesota by the purchaser are exempt, but only if the purchaser 
  3.23  is not a resident of Minnesota and provided that the aircraft is 
  3.24  not thereafter returned to a point within Minnesota, except in 
  3.25  the course of interstate commerce or isolated and occasional 
  3.26  use, and will be registered in another state or country upon its 
  3.27  removal from Minnesota.  This exemption applies even if the 
  3.28  purchaser takes possession of the aircraft in Minnesota and uses 
  3.29  the aircraft in the state exclusively for training purposes for 
  3.30  a period not to exceed ten days prior to removing the aircraft 
  3.31  from this state. 
  3.32     (f) The sale, purchase, storage, use, or consumption by an 
  3.33  airline company, as defined in section 270.071, subdivision 4, 
  3.34  of prepared food and beverages are exempt if the prepared food 
  3.35  and beverages are: 
  3.36     (1) prepared in Minnesota or shipped or brought into 
  4.1   Minnesota by a for-hire carrier; 
  4.2      (2) kept, without use, for the purpose of being transported 
  4.3   outside of Minnesota; and 
  4.4      (3) used solely outside of Minnesota, except in the course 
  4.5   of interstate commerce. 
  4.6      [EFFECTIVE DATE.] This section is effective for sales and 
  4.7   purchases made after June 30, 2003.