HF 1900

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:38pm

A bill for an act
relating to taxation; sales and use; reinstating the exemption for
telecommunications equipment; amending Minnesota Statutes 2012, section
297A.68, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 297A.68, is amended by adding a
subdivision to read:

new text begin Subd. 35a. new text end

new text begin Telecommunications and pay television machinery and equipment.
new text end

new text begin (a) Telecommunications or pay television machinery and equipment purchased or leased for
use directly by a telecommunications or pay television provider primarily in the provision
of telecommunications or pay television services that are ultimately to be sold at retail are
exempt, regardless of whether purchased by the owner, a contractor, or a subcontractor.
new text end

new text begin (b) For purposes of this subdivision, "telecommunications or pay television
machinery and equipment" includes, but is not limited to:
new text end

new text begin (1) machinery, equipment, and fixtures utilized in receiving, initiating,
amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunications or pay television services, such as computers, transformers, amplifiers,
routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
new text end

new text begin (2) machinery, equipment, and fixtures used in the transportation of
telecommunications or pay television services, such as radio transmitters and receivers,
satellite equipment, microwave equipment, and other transporting media, but not wire,
cable, fiber, poles, or conduit;
new text end

new text begin (3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or
enable the machinery in clauses (1) and (2) to accomplish its intended function, such as
auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
equipment necessary to the operation of the telecommunications or pay television
equipment; and software necessary to the operation of the telecommunications or pay
television equipment; and
new text end

new text begin (4) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2013. Refunds for sales tax paid on equipment exempted under this
section may be applied for and paid in the same manner as refunds under Minnesota
Statutes, section 297A.75.
new text end