HF 1942

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; sales; exempting sales to 
  1.3             hospitals; amending Minnesota Statutes 1996, section 
  1.4             297A.25, by adding a subdivision. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 297A.25, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 62.  [HOSPITALS.] The gross receipts from the sale of 
  1.9   tangible personal property to, and the storage, use, or 
  1.10  consumption of such property by, a hospital are exempt, if the 
  1.11  property purchased is to be used for the hospitalization of 
  1.12  human beings.  For purposes of this subdivision, "hospital" 
  1.13  means a hospital licensed under chapter 144 or a hospital 
  1.14  licensed by any other jurisdiction.  This exemption does not 
  1.15  apply to purchases made by a clinic, physician's office, or any 
  1.16  other medical facility not operating as a hospital, even though 
  1.17  the clinic, office, or facility may be owned and operated by a 
  1.18  hospital.  Sales exempted by this subdivision do not include 
  1.19  sales under section 297A.01, subdivision 3, paragraphs (c), (e), 
  1.20  and (i), clause (vii).  This exemption does not apply to 
  1.21  building, construction, or reconstruction materials purchased by 
  1.22  a contractor or a subcontractor as a part of a lump-sum contract 
  1.23  or similar type of contract with a guaranteed maximum price 
  1.24  covering both labor and materials for use in the construction, 
  1.25  alteration, or repair of a hospital.  This exemption does not 
  2.1   apply to construction materials to be used in constructing 
  2.2   buildings or facilities which will not be used principally by a 
  2.3   hospital.  This exemption does not apply to the leasing of a 
  2.4   motor vehicle as defined in section 297B.01, subdivision 5. 
  2.5      Sec. 2.  [EFFECTIVE DATE.] 
  2.6      Section 1 is effective for sales and purchases occurring 
  2.7   after December 31, 1995.