HF 1754

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

  1.1                          A bill for an act 
  1.2             relating to taxes; sales and use taxes; exempting 
  1.3             county government purchases from the sales tax and 
  1.4             reducing county aid payments to reflect reduced county 
  1.5             spending; amending Minnesota Statutes 2000, sections 
  1.6             273.1398, by adding a subdivision; 297A.70, 
  1.7             subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 273.1398, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 4b.  [AID OFFSET FOR COUNTY SALES TAX 
  1.12  EXEMPTION.] Payments to a county under subdivision 2 or section 
  1.13  273.166 for calendar year 2002 shall be permanently reduced by 
  1.14  an amount equal to (1) the ratio of the county's population to 
  1.15  the state population for the most recently available year as of 
  1.16  July 31, 2001, multiplied by (2) $27,313,000.  The payment to a 
  1.17  county under subdivision 2 or section 273.166 may not be less 
  1.18  than zero after this reduction. 
  1.19     [EFFECTIVE DATE.] This section is effective for aids 
  1.20  payable in 2002 and thereafter. 
  1.21     Sec. 2.  Minnesota Statutes 2000, section 297A.70, 
  1.22  subdivision 2, is amended to read: 
  1.23     Subd. 2.  [SALES TO GOVERNMENT.] (a) All sales, except 
  1.24  those listed in paragraph (b), to the following governments and 
  1.25  political subdivisions, or to the listed agencies or 
  1.26  instrumentalities of governments and political subdivisions, are 
  2.1   exempt: 
  2.2      (1) the United States and its agencies and 
  2.3   instrumentalities; 
  2.4      (2) school districts, the University of Minnesota, state 
  2.5   universities, community colleges, technical colleges, state 
  2.6   academies, the Perpich Minnesota center for arts education, and 
  2.7   an instrumentality of a political subdivision that is accredited 
  2.8   as an optional/special function school by the North Central 
  2.9   Association of Colleges and Schools; 
  2.10     (3) counties; 
  2.11     (4) hospitals and nursing homes owned and operated by 
  2.12  political subdivisions of the state; 
  2.13     (4) (5) other states or political subdivisions of other 
  2.14  states, if the sale would be exempt from taxation if it occurred 
  2.15  in that state; and 
  2.16     (5) (6) sales to public libraries, public library systems, 
  2.17  multicounty, multitype library systems as defined in section 
  2.18  134.001, county law libraries under chapter 134A, state agency 
  2.19  libraries, the state library under section 480.09, and the 
  2.20  legislative reference library.  
  2.21     (b) This exemption does not apply to the sales of the 
  2.22  following products and services: 
  2.23     (1) building, construction, or reconstruction materials 
  2.24  purchased by a contractor or a subcontractor as a part of a 
  2.25  lump-sum contract or similar type of contract with a guaranteed 
  2.26  maximum price covering both labor and materials for use in the 
  2.27  construction, alteration, or repair of a building or facility; 
  2.28     (2) construction materials purchased by tax exempt entities 
  2.29  or their contractors to be used in constructing buildings or 
  2.30  facilities which will not be used principally by the tax exempt 
  2.31  entities; 
  2.32     (3) the leasing of a motor vehicle as defined in section 
  2.33  297B.01, subdivision 5, except for leases entered into by the 
  2.34  United States or its agencies or instrumentalities; or 
  2.35     (4) meals and lodging as defined under section 297A.61, 
  2.36  subdivisions 3, paragraph (d), and 16, paragraph (c), except for 
  3.1   meals and lodging purchased directly by the United States or its 
  3.2   agencies or instrumentalities. 
  3.3      (c) As used in this subdivision, "school districts" means 
  3.4   public school entities and districts of every kind and nature 
  3.5   organized under the laws of the state of Minnesota, and any 
  3.6   instrumentality of a school district, as defined in section 
  3.7   471.59. 
  3.8      [EFFECTIVE DATE.] This section is effective for sales and 
  3.9   purchases made after December 31, 2001.