HF 2029

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; changing the taxation of solid 
  1.3             waste management services; repealing the SCORE tax and 
  1.4             the solid waste generator assessment fee; replacing 
  1.5             those taxes and fees with a single tax; amending 
  1.6             Minnesota Statutes 1996, sections 270B.01, subdivision 
  1.7             8; 297A.01, subdivision 3; 297A.25, subdivisions 11 
  1.8             and 16; and 297A.44, subdivision 1; proposing coding 
  1.9             for new law as Minnesota Statutes, chapter 297F; 
  1.10            repealing Minnesota Statutes 1996, sections 116.07, 
  1.11            subdivision 10; 297A.01, subdivision 21; and 297A.45. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 270B.01, 
  1.14  subdivision 8, is amended to read: 
  1.15     Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
  1.16  chapter only, "Minnesota tax laws" means the taxes administered 
  1.17  by or paid to the commissioner under chapters 289A (except taxes 
  1.18  imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 
  1.19  291, and 297A, and 297F and sections 295.50 to 295.59, or any 
  1.20  similar Indian tribal tax administered by the commissioner 
  1.21  pursuant to any tax agreement between the state and the Indian 
  1.22  tribal government, and includes any laws for the assessment, 
  1.23  collection, and enforcement of those taxes.  
  1.24     Sec. 2.  Minnesota Statutes 1996, section 297A.01, 
  1.25  subdivision 3, is amended to read: 
  1.26     Subd. 3.  A "sale" and a "purchase" includes, but is not 
  1.27  limited to, each of the following transactions: 
  1.28     (a) Any transfer of title or possession, or both, of 
  2.1   tangible personal property, whether absolutely or conditionally, 
  2.2   and the leasing of or the granting of a license to use or 
  2.3   consume tangible personal property other than manufactured homes 
  2.4   used for residential purposes for a continuous period of 30 days 
  2.5   or more, for a consideration in money or by exchange or barter; 
  2.6      (b) The production, fabrication, printing, or processing of 
  2.7   tangible personal property for a consideration for consumers who 
  2.8   furnish either directly or indirectly the materials used in the 
  2.9   production, fabrication, printing, or processing; 
  2.10     (c) The furnishing, preparing, or serving for a 
  2.11  consideration of food, meals, or drinks.  "Sale" does not 
  2.12  include: 
  2.13     (1) meals or drinks served to patients, inmates, or persons 
  2.14  residing at hospitals, sanitariums, nursing homes, senior 
  2.15  citizens homes, and correctional, detention, and detoxification 
  2.16  facilities; 
  2.17     (2) meals or drinks purchased for and served exclusively to 
  2.18  individuals who are 60 years of age or over and their spouses or 
  2.19  to the handicapped and their spouses by governmental agencies, 
  2.20  nonprofit organizations, agencies, or churches or pursuant to 
  2.21  any program funded in whole or part through 42 USCA sections 
  2.22  3001 through 3045, wherever delivered, prepared or served; or 
  2.23     (3) meals and lunches served at public and private schools, 
  2.24  universities, or colleges. 
  2.25  Notwithstanding section 297A.25, subdivision 2, taxable food or 
  2.26  meals include, but are not limited to, the following:  
  2.27     (i) heated food or drinks; 
  2.28     (ii) sandwiches prepared by the retailer; 
  2.29     (iii) single sales of prepackaged ice cream or ice milk 
  2.30  novelties prepared by the retailer; 
  2.31     (iv) hand-prepared or dispensed ice cream or ice milk 
  2.32  products including cones, sundaes, and snow cones; 
  2.33     (v) soft drinks and other beverages prepared or served by 
  2.34  the retailer; 
  2.35     (vi) gum; 
  2.36     (vii) ice; 
  3.1      (viii) all food sold in vending machines; 
  3.2      (ix) party trays prepared by the retailers; and 
  3.3      (x) all meals and single servings of packaged snack food, 
  3.4   single cans or bottles of pop, sold in restaurants and bars; 
  3.5      (d) The granting of the privilege of admission to places of 
  3.6   amusement, recreational areas, or athletic events, except a 
  3.7   world championship football game sponsored by the national 
  3.8   football league, and the privilege of having access to and the 
  3.9   use of amusement devices, tanning facilities, reducing salons, 
  3.10  steam baths, turkish baths, health clubs, and spas or athletic 
  3.11  facilities; 
  3.12     (e) The furnishing for a consideration of lodging and 
  3.13  related services by a hotel, rooming house, tourist court, motel 
  3.14  or trailer camp and of the granting of any similar license to 
  3.15  use real property other than the renting or leasing thereof for 
  3.16  a continuous period of 30 days or more; 
  3.17     (f) The furnishing for a consideration of electricity, gas, 
  3.18  water, or steam for use or consumption within this state, or 
  3.19  local exchange telephone service, intrastate toll service, and 
  3.20  interstate toll service, if that service originates from and is 
  3.21  charged to a telephone located in this state.  Telephone service 
  3.22  includes paging services and private communication service, as 
  3.23  defined in United States Code, title 26, section 4252(d), except 
  3.24  for private communication service purchased by an agent acting 
  3.25  on behalf of the state lottery.  The furnishing for a 
  3.26  consideration of access to telephone services by a hotel to its 
  3.27  guests is a sale under this clause.  Sales by municipal 
  3.28  corporations in a proprietary capacity are included in the 
  3.29  provisions of this clause.  The furnishing of water and sewer 
  3.30  services for residential use shall not be considered a sale.  
  3.31  The sale of natural gas to be used as a fuel in vehicles 
  3.32  propelled by natural gas shall not be considered a sale for the 
  3.33  purposes of this section; 
  3.34     (g) The furnishing for a consideration of cable television 
  3.35  services, including charges for basic service, charges for 
  3.36  premium service, and any other charges for any other 
  4.1   pay-per-view, monthly, or similar television services; 
  4.2      (h) The furnishing for a consideration of parking services, 
  4.3   whether on a contractual, hourly, or other periodic basis, 
  4.4   except for parking at a meter; 
  4.5      (i) The furnishing for a consideration of services listed 
  4.6   in this paragraph: 
  4.7      (i) laundry and dry cleaning services including cleaning, 
  4.8   pressing, repairing, altering, and storing clothes, linen 
  4.9   services and supply, cleaning and blocking hats, and carpet, 
  4.10  drapery, upholstery, and industrial cleaning.  Laundry and dry 
  4.11  cleaning services do not include services provided by coin 
  4.12  operated facilities operated by the customer; 
  4.13     (ii) motor vehicle washing, waxing, and cleaning services, 
  4.14  including services provided by coin-operated facilities operated 
  4.15  by the customer, and rustproofing, undercoating, and towing of 
  4.16  motor vehicles; 
  4.17     (iii) building and residential cleaning, maintenance, and 
  4.18  disinfecting and exterminating services; 
  4.19     (iv) detective services, security services, burglar, fire 
  4.20  alarm, and armored car services not including services performed 
  4.21  within the jurisdiction they serve by off-duty licensed peace 
  4.22  officers as defined in section 626.84, subdivision 1; 
  4.23     (v) pet grooming services; 
  4.24     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
  4.25  services; garden planting and maintenance; tree, bush, and shrub 
  4.26  pruning, bracing, spraying, and surgery; tree, bush, shrub and 
  4.27  stump removal; and tree trimming for public utility lines.  
  4.28  Services performed under a construction contract for the 
  4.29  installation of shrubbery, plants, sod, trees, bushes, and 
  4.30  similar items are not taxable; 
  4.31     (vii) mixed municipal solid waste management services as 
  4.32  described in section 297A.45; 
  4.33     (viii) massages, except when provided by a licensed health 
  4.34  care facility or professional or upon written referral from a 
  4.35  licensed health care facility or professional for treatment of 
  4.36  illness, injury, or disease; and 
  5.1      (ix)  (viii) the furnishing for consideration of lodging, 
  5.2   board and care services for animals in kennels and other similar 
  5.3   arrangements, but excluding veterinary and horse boarding 
  5.4   services. 
  5.5   The services listed in this paragraph are taxable under section 
  5.6   297A.02 if the service is performed wholly within Minnesota or 
  5.7   if the service is performed partly within and partly without 
  5.8   Minnesota and the greater proportion of the service is performed 
  5.9   in Minnesota, based on the cost of performance.  In applying the 
  5.10  provisions of this chapter, the terms "tangible personal 
  5.11  property" and "sales at retail" include taxable services and the 
  5.12  provision of taxable services, unless specifically provided 
  5.13  otherwise.  Services performed by an employee for an employer 
  5.14  are not taxable under this paragraph.  Services performed by a 
  5.15  partnership or association for another partnership or 
  5.16  association are not taxable under this paragraph if one of the 
  5.17  entities owns or controls more than 80 percent of the voting 
  5.18  power of the equity interest in the other entity.  Services 
  5.19  performed between members of an affiliated group of corporations 
  5.20  are not taxable.  For purposes of this section, "affiliated 
  5.21  group of corporations" includes those entities that would be 
  5.22  classified as a member of an affiliated group under United 
  5.23  States Code, title 26, section 1504, and who are eligible to 
  5.24  file a consolidated tax return for federal income tax purposes; 
  5.25     (j) A "sale" and a "purchase" includes the transfer of 
  5.26  computer software, meaning information and directions that 
  5.27  dictate the function performed by data processing equipment.  A 
  5.28  "sale" and a "purchase" does not include the design, 
  5.29  development, writing, translation, fabrication, lease, or 
  5.30  transfer for a consideration of title or possession of a custom 
  5.31  computer program; and 
  5.32     (k) The granting of membership in a club, association, or 
  5.33  other organization if: 
  5.34     (1) the club, association, or other organization makes 
  5.35  available for the use of its members sports and athletic 
  5.36  facilities (without regard to whether a separate charge is 
  6.1   assessed for use of the facilities); and 
  6.2      (2) use of the sports and athletic facilities is not made 
  6.3   available to the general public on the same basis as it is made 
  6.4   available to members.  
  6.5   Granting of membership includes both one-time initiation fees 
  6.6   and periodic membership dues.  Sports and athletic facilities 
  6.7   include golf courses, tennis, racquetball, handball and squash 
  6.8   courts, basketball and volleyball facilities, running tracks, 
  6.9   exercise equipment, swimming pools, and other similar athletic 
  6.10  or sports facilities.  The provisions of this paragraph do not 
  6.11  apply to camps or other recreation facilities owned and operated 
  6.12  by an exempt organization under section 501(c)(3) of the 
  6.13  Internal Revenue Code of 1986, as amended through December 31, 
  6.14  1992, for educational and social activities for young people 
  6.15  primarily age 18 and under.  
  6.16     Sec. 3.  Minnesota Statutes 1996, section 297A.25, 
  6.17  subdivision 11, is amended to read: 
  6.18     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
  6.19  all sales, including sales in which title is retained by a 
  6.20  seller or a vendor or is assigned to a third party under an 
  6.21  installment sale or lease purchase agreement under section 
  6.22  465.71, of tangible personal property to, and all storage, use 
  6.23  or consumption of such property by, the United States and its 
  6.24  agencies and instrumentalities, the University of Minnesota, 
  6.25  state universities, community colleges, technical colleges, 
  6.26  state academies, the Lola and Rudy Perpich Minnesota center for 
  6.27  arts education, and school districts are exempt. 
  6.28     As used in this subdivision, "school districts" means 
  6.29  public school entities and districts of every kind and nature 
  6.30  organized under the laws of the state of Minnesota, including, 
  6.31  without limitation, school districts, intermediate school 
  6.32  districts, education districts, service cooperatives, secondary 
  6.33  vocational cooperative centers, special education cooperatives, 
  6.34  joint purchasing cooperatives, telecommunication cooperatives, 
  6.35  regional management information centers, and any instrumentality 
  6.36  of a school district, as defined in section 471.59. 
  7.1      Sales exempted by this subdivision include sales under 
  7.2   section 297A.01, subdivision 3, paragraph (f), but do not 
  7.3   include sales under section 297A.01, subdivision 3, paragraph 
  7.4   (j), clause (vii).  
  7.5      Sales to hospitals and nursing homes owned and operated by 
  7.6   political subdivisions of the state are exempt under this 
  7.7   subdivision.  
  7.8      The sales to and exclusively for the use of libraries of 
  7.9   books, periodicals, audio-visual materials and equipment, 
  7.10  photocopiers for use by the public, and all cataloguing and 
  7.11  circulation equipment, and cataloguing and circulation software 
  7.12  for library use are exempt under this subdivision.  For purposes 
  7.13  of this paragraph "libraries" means libraries as defined in 
  7.14  section 134.001, county law libraries under chapter 134A, the 
  7.15  state library under section 480.09, and the legislative 
  7.16  reference library. 
  7.17     Sales of supplies and equipment used in the operation of an 
  7.18  ambulance service owned and operated by a political subdivision 
  7.19  of the state are exempt under this subdivision provided that the 
  7.20  supplies and equipment are used in the course of providing 
  7.21  medical care.  Sales to a political subdivision of repair and 
  7.22  replacement parts for emergency rescue vehicles and fire trucks 
  7.23  and apparatus are exempt under this subdivision.  
  7.24     Sales to a political subdivision of machinery and 
  7.25  equipment, except for motor vehicles, used directly for mixed 
  7.26  municipal solid waste management services at a solid waste 
  7.27  disposal facility as defined in section 115A.03, subdivision 10, 
  7.28  are exempt under this subdivision.  
  7.29     Sales to political subdivisions of chore and homemaking 
  7.30  services to be provided to elderly or disabled individuals are 
  7.31  exempt. 
  7.32     Sales of telephone services to the department of 
  7.33  administration that are used to provide telecommunications 
  7.34  services through the intertechnologies revolving fund are exempt 
  7.35  under this subdivision. 
  7.36     This exemption shall not apply to building, construction or 
  8.1   reconstruction materials purchased by a contractor or a 
  8.2   subcontractor as a part of a lump-sum contract or similar type 
  8.3   of contract with a guaranteed maximum price covering both labor 
  8.4   and materials for use in the construction, alteration, or repair 
  8.5   of a building or facility.  This exemption does not apply to 
  8.6   construction materials purchased by tax exempt entities or their 
  8.7   contractors to be used in constructing buildings or facilities 
  8.8   which will not be used principally by the tax exempt entities. 
  8.9      This exemption does not apply to the leasing of a motor 
  8.10  vehicle as defined in section 297B.01, subdivision 5, except for 
  8.11  leases entered into by the United States or its agencies or 
  8.12  instrumentalities.  
  8.13     The tax imposed on sales to political subdivisions of the 
  8.14  state under this section applies to all political subdivisions 
  8.15  other than those explicitly exempted under this subdivision, 
  8.16  notwithstanding section 115A.69, subdivision 6, 116A.25, 
  8.17  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
  8.18  469.127, 473.448, 473.545, or 473.608 or any other law to the 
  8.19  contrary enacted before 1992. 
  8.20     Sales exempted by this subdivision include sales made to 
  8.21  other states or political subdivisions of other states, if the 
  8.22  sale would be exempt from taxation if it occurred in that state, 
  8.23  but do not include sales under section 297A.01, subdivision 3, 
  8.24  paragraphs (c) and (e). 
  8.25     Sec. 4.  Minnesota Statutes 1996, section 297A.25, 
  8.26  subdivision 16, is amended to read: 
  8.27     Subd. 16.  [SALES TO NONPROFIT GROUPS.] The gross receipts 
  8.28  from the sale of tangible personal property to, and the storage, 
  8.29  use or other consumption of such property by, any corporation, 
  8.30  society, association, foundation, or institution organized and 
  8.31  operated exclusively for charitable, religious, or educational 
  8.32  purposes if the property purchased is to be used in the 
  8.33  performance of charitable, religious, or educational functions, 
  8.34  or any senior citizen group or association of groups that in 
  8.35  general limits membership to persons who are either (1) age 55 
  8.36  or older, or (2) physically disabled, and is organized and 
  9.1   operated exclusively for pleasure, recreation, and other 
  9.2   nonprofit purposes, no part of the net earnings of which inures 
  9.3   to the benefit of any private shareholders, are exempt.  For 
  9.4   purposes of this subdivision, charitable purpose includes the 
  9.5   maintenance of a cemetery owned by a religious organization.  
  9.6   Sales exempted by this subdivision include sales pursuant to 
  9.7   section 297A.01, subdivision 3, paragraphs (d) and (f), but do 
  9.8   not include sales under section 297A.01, subdivision 3, 
  9.9   paragraph (j), clause (vii).  This exemption shall not apply to 
  9.10  building, construction, or reconstruction materials purchased by 
  9.11  a contractor or a subcontractor as a part of a lump-sum contract 
  9.12  or similar type of contract with a guaranteed maximum price 
  9.13  covering both labor and materials for use in the construction, 
  9.14  alteration, or repair of a building or facility.  This exemption 
  9.15  does not apply to construction materials purchased by tax exempt 
  9.16  entities or their contractors to be used in constructing 
  9.17  buildings or facilities which will not be used principally by 
  9.18  the tax exempt entities.  This exemption does not apply to the 
  9.19  leasing of a motor vehicle as defined in section 297B.01, 
  9.20  subdivision 5. 
  9.21     Sec. 5.  Minnesota Statutes 1996, section 297A.44, 
  9.22  subdivision 1, is amended to read: 
  9.23     Subdivision 1.  (a) Except as provided in paragraphs 
  9.24  (b), and (c), and (d), all revenues, including interest and 
  9.25  penalties, derived from the excise and use taxes imposed by 
  9.26  sections 297A.01 to 297A.44 shall be deposited by the 
  9.27  commissioner in the state treasury and credited to the general 
  9.28  fund.  
  9.29     (b) All excise and use taxes derived from sales and use of 
  9.30  property and services purchased for the construction and 
  9.31  operation of an agricultural resource project, from and after 
  9.32  the date on which a conditional commitment for a loan guaranty 
  9.33  for the project is made pursuant to section 41A.04, subdivision 
  9.34  3, shall be deposited in the Minnesota agricultural and economic 
  9.35  account in the special revenue fund.  The commissioner of 
  9.36  finance shall certify to the commissioner the date on which the 
 10.1   project received the conditional commitment.  The amount 
 10.2   deposited in the loan guaranty account shall be reduced by any 
 10.3   refunds and by the costs incurred by the department of revenue 
 10.4   to administer and enforce the assessment and collection of the 
 10.5   taxes.  
 10.6      (c) All revenues, including interest and penalties, derived 
 10.7   from the excise and use taxes imposed on sales and purchases 
 10.8   included in section 297A.01, subdivision 3, paragraphs (d) and 
 10.9   (l), clauses (1) and (2), must be deposited by the commissioner 
 10.10  in the state treasury, and credited as follows: 
 10.11     (1) first to the general obligation special tax bond debt 
 10.12  service account in each fiscal year the amount required by 
 10.13  section 16A.661, subdivision 3, paragraph (b); and 
 10.14     (2) after the requirements of clause (1) have been met, the 
 10.15  balance must be credited to the general fund. 
 10.16     (d) The revenues, including interest and penalties, derived 
 10.17  from the taxes imposed on solid waste collection services as 
 10.18  described in section 297A.45, shall be deposited by the 
 10.19  commissioner in the state treasury and credited to the general 
 10.20  fund to be used for funding solid waste reduction and recycling 
 10.21  programs. 
 10.22     Sec. 6.  [297F.01] [SOLID WASTE MANAGEMENT TAX 
 10.23  DEFINITIONS.] 
 10.24     Subdivision 1.  [SCOPE.] When used in this chapter, the 
 10.25  following terms have the meanings given to them in this 
 10.26  section.  For terms not defined in this section, the terms 
 10.27  defined in section 115A.03 have the meanings given them. 
 10.28     Subd. 2.  [COMMERCIAL GENERATOR.] "Commercial generator" 
 10.29  means any of the following: 
 10.30     (1) an owner or operator of a business, including a 
 10.31  home-operated business, industry, church, nursing home, 
 10.32  nonprofit organization, school, or any other commercial or 
 10.33  institutional enterprise that generates mixed municipal solid 
 10.34  waste or non-mixed municipal solid waste; 
 10.35     (2) an owner of a building or site containing multiple 
 10.36  residences that generates mixed municipal solid waste or 
 11.1   non-mixed municipal solid waste, including apartment buildings, 
 11.2   condominiums, or townhomes where no residence has separate trash 
 11.3   pickup and no residence is separately billed for such service by 
 11.4   the waste service provider, but excluding manufactured home 
 11.5   parks; or 
 11.6      (3) any other generator of taxable waste that is not a 
 11.7   residential generator defined in subdivision 7. 
 11.8      Subd. 3.  [CUBIC YARD.] "Cubic yard" means a cubic yard of 
 11.9   non-mixed municipal solid waste that is not compacted. 
 11.10     Subd. 4.  [MIXED MUNICIPAL SOLID WASTE.] "Mixed municipal 
 11.11  solid waste" means mixed municipal solid waste as defined in 
 11.12  section 115A.03, subdivision 21. 
 11.13     Subd. 5.  [NON-MIXED MUNICIPAL SOLID WASTE.] "Non-mixed 
 11.14  municipal solid waste" means: 
 11.15     (1) infectious waste as defined in section 116.76, 
 11.16  subdivision 12; 
 11.17     (2) pathological waste as defined in section 116.76, 
 11.18  subdivision 14; 
 11.19     (3) industrial waste as defined in section 115A.03, 
 11.20  subdivision 13a; and 
 11.21     (4) construction debris as defined in section 115A.03, 
 11.22  subdivision 7. 
 11.23     Subd. 6.  [PERIODIC WASTE COLLECTION.] "Periodic waste 
 11.24  collection" means each time a waste container is emptied by the 
 11.25  person that collects the non-mixed municipal solid waste at the 
 11.26  point that the waste has been aggregated for collection by the 
 11.27  generator. 
 11.28     Subd. 7.  [RESIDENTIAL GENERATOR.] "Residential generator" 
 11.29  means any of the following: 
 11.30     (1) a detached single family residence that generates mixed 
 11.31  municipal solid waste or non-mixed municipal solid waste; 
 11.32     (2) a person residing in a manufactured home park that 
 11.33  generates mixed municipal solid waste or non-mixed municipal 
 11.34  solid waste; or 
 11.35     (3) a person residing in a building or site containing 
 11.36  multiple residences that generates mixed municipal solid waste, 
 12.1   including apartment buildings, condominiums, or townhomes, where 
 12.2   each residence either (i) is separately billed by the waste 
 12.3   service provider or (ii) has separate waste collection for each 
 12.4   residence, even if the residence pays to the owner or an 
 12.5   association a monthly maintenance fee that includes the expense 
 12.6   of waste collection, and the owner or association pays the waste 
 12.7   service provider for waste collection in one lump sum. 
 12.8      Subd. 8.  [SELF-HAULER.] "Self-hauler" means a person who 
 12.9   generates and transports mixed municipal solid waste or 
 12.10  non-mixed municipal solid waste generated by that person or 
 12.11  another person without compensation. 
 12.12     Subd. 9.  [WASTE MANAGEMENT SERVICE PROVIDER.] "Waste 
 12.13  management service provider" means the person who directly bills 
 12.14  the generator for waste management services; or if the service 
 12.15  is not billed, the person who provides the waste management 
 12.16  service or that person's lawful designee, and includes, but is 
 12.17  not limited to, waste haulers, waste management facilities, 
 12.18  utility services, and political subdivisions. 
 12.19     Subd. 10.  [WASTE MANAGEMENT SERVICES.] "Waste management 
 12.20  services" means waste transportation, processing, and disposal. 
 12.21     Sec. 7.  [297F.02] [RESIDENTIAL GENERATORS.] 
 12.22     Subdivision 1.  [IMPOSITION.] (a) A tax is imposed upon 
 12.23  each residential generator for mixed municipal solid waste 
 12.24  management services received. 
 12.25     (b) The tax is imposed upon the political subdivision in 
 12.26  those cases where the waste management service provider provides 
 12.27  waste management services through a centralized collection 
 12.28  system, such as a canister or dumpster system, without direct 
 12.29  charge to residential generators.  The political subdivision 
 12.30  shall either pay at the rate provided in subdivision 2 per 
 12.31  residential generator or pay as a commercial generator at the 
 12.32  rate provided in section 297F.03, subdivision 2. 
 12.33     (c) The tax is imposed on the person that is billed for the 
 12.34  waste management services at buildings or sites that contain 
 12.35  multiple residences where the residences are not separately 
 12.36  billed for waste management services but have separate waste 
 13.1   pick up, and the tax is imposed on the person that is billed for 
 13.2   the waste management services at manufactured home parks where 
 13.3   residences are not separately billed for waste management 
 13.4   services. 
 13.5      Subd. 2.  [RATES.] Except as provided in subdivision 3 and 
 13.6   in section 297F.05, the amount of the tax for each residential 
 13.7   generator is $1.17 each calendar month.  Each waste management 
 13.8   service provider shall collect the tax from each residential 
 13.9   generator who receives mixed municipal solid waste management 
 13.10  services, based on the provider's normal billing cycle. 
 13.11     Subd. 3.  [USE OF COLLECTION BAGS AND STICKERS.] When the 
 13.12  sale price of a bag, sticker, or other indicia includes mixed 
 13.13  municipal solid waste management services, the solid waste 
 13.14  management tax on the bags, stickers, and indicia sold by 
 13.15  vendors on behalf of a political subdivision or waste hauler, 
 13.16  shall be collected when the bag, sticker, or other indicia are 
 13.17  sold to the vendor by the political subdivision or waste hauler, 
 13.18  and shall be: 
 13.19     (1) determined by a method developed by the waste collector 
 13.20  or political subdivision and approved by the commissioner of 
 13.21  revenue, which yields the equivalent of approximately $1.17 per 
 13.22  calendar month per residential generator; or 
 13.23     (2) equal to $0.21 for each unit of 35 gallons or less. 
 13.24     The solid waste management service and tax under this 
 13.25  subdivision shall be included in the price of the bag, sticker, 
 13.26  or other indicia. 
 13.27     Sec. 8.  [297F.03] [MIXED MUNICIPAL SOLID WASTE COMMERCIAL 
 13.28  GENERATORS.] 
 13.29     Subdivision 1.  [IMPOSITION.] A tax is imposed upon 
 13.30  commercial generators for mixed municipal solid waste management 
 13.31  services. 
 13.32     Subd. 2.  [RATE.] (a) The rate of the tax for mixed 
 13.33  municipal solid waste commercial generators is 13.5 percent of 
 13.34  the sale price of waste management services paid by the 
 13.35  generators. 
 13.36     (b) For political subdivisions described under section 
 14.1   297F.02, subdivision 1, paragraph (b), where the political 
 14.2   subdivision chooses to pay as a commercial generator, the price 
 14.3   of the waste management service shall equal the market price of 
 14.4   the waste management service. 
 14.5      Sec. 9.  [297F.04] [NON-MIXED MUNICIPAL SOLID WASTE.] 
 14.6      Subdivision 1.  [IMPOSITION.] A tax is imposed upon 
 14.7   non-mixed municipal solid waste generators on the waste 
 14.8   management of non-mixed municipal solid waste. 
 14.9      Subd. 2.  [RATE.] (a) Commercial generators that generate 
 14.10  non-mixed municipal solid waste shall pay a solid waste 
 14.11  management tax of 60 cents per cubic yard of periodic waste 
 14.12  collection capacity purchased by the generator, based on the 
 14.13  size of the container for the non-mixed municipal solid waste, 
 14.14  the actual volume, or the weight-to-volume conversion schedule 
 14.15  in paragraph (c).  However, the tax must be calculated by the 
 14.16  waste management service provider using the same method for 
 14.17  calculating the waste management service fee so that both are 
 14.18  calculated according to container capacity, actual volume, or 
 14.19  weight. 
 14.20     (b) Notwithstanding section 297F.02, a residential 
 14.21  generator that generates non-mixed municipal solid waste shall 
 14.22  pay a solid waste management tax in the same manner as provided 
 14.23  in paragraph (a). 
 14.24     (c) The weight-to-volume conversion schedule for: 
 14.25     (1) construction debris as defined in section 115A.03, 
 14.26  subdivision 7, is $2 per ton or 60 cents per cubic yard; 
 14.27     (2) industrial waste as defined in section 115A.03, 
 14.28  subdivision 13a, is 46 cents per ton or 60 cents per cubic yard; 
 14.29  and 
 14.30     (3) infectious waste as defined in section 116.76, 
 14.31  subdivision 12, and pathological wastes as defined in section 
 14.32  116.76, subdivision 14, is 60 cents per 150 pounds or 60 cents 
 14.33  per cubic yard. 
 14.34     Sec. 10.  [297F.05] [SELF-HAULERS.] 
 14.35     (a) A self-hauler of mixed municipal solid waste shall pay 
 14.36  the tax to the operator of the waste management facility to 
 15.1   which the waste is delivered at the rate imposed under section 
 15.2   297F.03. 
 15.3      (b) A self-hauler of non-mixed municipal solid waste shall 
 15.4   pay the tax to the operator of the waste management facility to 
 15.5   which the waste is delivered at the rate imposed under section 
 15.6   297F.04. 
 15.7      (c) The tax imposed on the self-hauler of non-mixed 
 15.8   municipal solid waste may be based either on the capacity of the 
 15.9   container, the actual volume, or the weight-to-volume conversion 
 15.10  schedule in paragraph (d).  However, the tax must be calculated 
 15.11  by the operator using the same method for calculating the 
 15.12  tipping fee so that both are calculated according to container 
 15.13  capacity, actual volume, or weight. 
 15.14     (d) The weight-to-volume conversion schedule for: 
 15.15     (1) construction debris as defined in section 115A.03, 
 15.16  subdivision 7, is $2 per ton; and 
 15.17     (2) for industrial waste as defined in section 115A.03, 
 15.18  subdivision 13a, is 46 cents per ton, 60 cents per 150 pounds, 
 15.19  or 60 cents per cubic yard. 
 15.20     Sec. 11.  [297F.06] [EXEMPTIONS.] 
 15.21     Subdivision 1.  [CERTAIN SURCHARGES OR FEES.] The amount of 
 15.22  a surcharge or fee imposed under section 115A.919, 115A.921, 
 15.23  115A.923, 400.08, subdivision 3, or 473.843 is exempt from the 
 15.24  solid waste management tax. 
 15.25     Subd. 2.  [MATERIALS.] The tax is not imposed upon 
 15.26  generators for management services to manage the following 
 15.27  materials: 
 15.28     (1) mixed municipal solid waste and non-mixed municipal 
 15.29  solid waste generated outside of Minnesota; 
 15.30     (2) recyclable mixed municipal solid waste that is 
 15.31  separated for recycling by the generator, collected separately 
 15.32  from other waste, and recycled, to the extent the price of the 
 15.33  service for handling recycling material is separately itemized; 
 15.34     (3) recyclable non-mixed municipal solid waste that is 
 15.35  separated for recycling by the generator, collected separately 
 15.36  from other waste, delivered to a waste facility for the purpose 
 16.1   of recycling, and recycled; 
 16.2      (4) industrial waste, when it is transported to a facility 
 16.3   owned and operated by the same person that generated it; 
 16.4      (5) waste from a recycling facility that separates or 
 16.5   processes recyclable materials and reduces the volume of the 
 16.6   waste by at least 85 percent, provided that the exempted waste 
 16.7   is managed separately from other waste; 
 16.8      (6) the recyclable materials that are separated from mixed 
 16.9   municipal solid waste by the generator, collected and delivered 
 16.10  to a waste facility that recycles at least 85 percent of its 
 16.11  waste and are collected with mixed municipal solid waste that is 
 16.12  segregated in leakproof bags, provided that the mixed municipal 
 16.13  solid waste does not exceed five percent of the total weight of 
 16.14  the materials delivered to the facility and is ultimately 
 16.15  delivered to a waste facility identified as a preferred waste 
 16.16  management facility in county solid waste plans under section 
 16.17  115A.46; and 
 16.18     (7) through December 31, 2002, source-separated compostable 
 16.19  waste, if the waste is delivered to a facility exempted as 
 16.20  described in this clause.  To initially qualify for an 
 16.21  exemption, a facility must apply for an exemption in its 
 16.22  application for a new or amended solid waste permit to the 
 16.23  pollution control agency.  The first time a facility applies to 
 16.24  the agency, it must certify in its application that it will 
 16.25  comply with the criteria in items (i) to (v) and the 
 16.26  commissioner of the agency shall so certify to the commissioner 
 16.27  of revenue who must grant the exemption.  For each subsequent 
 16.28  calendar year, by October 1 of the preceding year, the facility 
 16.29  must apply to the agency for certification to renew its 
 16.30  exemption for the following year.  The application must be filed 
 16.31  according to the procedures of, and contain the information 
 16.32  required by, the agency.  The commissioner of revenue shall 
 16.33  grant the exemption if the commissioner of the agency finds and 
 16.34  certifies to the commissioner of revenue that based on an 
 16.35  evaluation of the composition of incoming waste and residuals 
 16.36  and the quality and use of the product: 
 17.1      (i) generators separate materials at the source; 
 17.2      (ii) the separation is performed in a manner appropriate to 
 17.3   the technology specific to the facility that: 
 17.4      (A) maximizes the quality of the product; 
 17.5      (B) minimizes the toxicity and quantity of residuals; and 
 17.6      (C) provides an opportunity for significant improvement in 
 17.7   the environmental efficiency of the operation; 
 17.8      (iii) the operator of the facility educates generators, in 
 17.9   coordination with each county using the facility, about 
 17.10  separating the waste to maximize the quality of the waste stream 
 17.11  for technology specific to the facility; 
 17.12     (iv) process residuals do not exceed 15 percent of the 
 17.13  weight of the total material delivered to the facility; and 
 17.14     (v) the final product is accepted for use. 
 17.15     Sec. 12.  [297F.07] [PAYMENT.] 
 17.16     (a) The waste management service provider shall report the 
 17.17  tax on a return prescribed by the commissioner of revenue, and 
 17.18  shall remit the tax with the return.  The return and the tax 
 17.19  must be filed following the period the tax is billed to the 
 17.20  generator.  The waste management service provider shall use the 
 17.21  filing cycle and due dates provided for taxes imposed under 
 17.22  chapter 297A. 
 17.23     (b) The waste hauler or political subdivision that sells 
 17.24  bags, stickers, or other indicia to vendors must report and 
 17.25  remit the tax imposed by section 297F.02, subdivision 3, on a 
 17.26  return prescribed by the commissioner of revenue, and shall 
 17.27  remit the tax with the return.  The return and the tax must be 
 17.28  filed following the period the bag is sold to the vendor.  The 
 17.29  waste management service provider shall use the filing cycle 
 17.30  provided for taxes imposed under chapter 297A. 
 17.31     (c) Any partial payments received by waste management 
 17.32  service providers for waste management services shall be 
 17.33  prorated between the tax imposed under section 297F.03 or 
 17.34  297F.04 and the service.  On partial payments received for waste 
 17.35  management services where the tax is imposed at $1.17 per month 
 17.36  under section 297F.02, the tax shall be deemed received by the 
 18.1   waste management service provider to the extent the amount 
 18.2   collected equals $1.17 or more. 
 18.3      Sec. 13.  [297F.08] [ADMINISTRATION AND ENFORCEMENT.] 
 18.4      The audit, assessment, refund, penalty, interest, 
 18.5   enforcement, collection remedies, appeal, and administrative 
 18.6   provisions of chapters 270 and 289A that are applicable to taxes 
 18.7   imposed under chapter 297A apply to this chapter. 
 18.8      Sec. 14.  [297F.09] [REQUIREMENT AND POTENTIAL LIABILITY OF 
 18.9   WASTE MANAGEMENT SERVICE PROVIDERS.] 
 18.10     Waste management service providers are required to: 
 18.11     (1) separately and accurately state the amount of the tax 
 18.12  in the appropriate statement of charges for waste management 
 18.13  services, or other statement if there are no charges for waste 
 18.14  management services, and in any action to enforce payment on 
 18.15  delinquent accounts; 
 18.16     (2) accurately account for and remit tax received; and 
 18.17     (3) work with the commissioner of revenue to ensure that 
 18.18  generators pay the tax. 
 18.19     Sec. 15.  [297F.10] [INFORMATION REGARDING THE SOLID WASTE 
 18.20  MANAGEMENT TAX.] 
 18.21     The director of the office of environmental assistance, 
 18.22  after consulting with the commissioner of revenue, the 
 18.23  commissioner of the pollution control agency, and waste 
 18.24  management service providers, shall develop information 
 18.25  regarding the solid waste tax for distribution to waste 
 18.26  generators in the state.  The information shall include facts 
 18.27  about the substitution of the solid waste tax for the sales tax 
 18.28  on solid waste services and the solid waste generator assessment 
 18.29  and the purposes for which revenue from the tax will be spent. 
 18.30     Sec. 16.  [297F.11] [DEPOSIT OF REVENUES; USE OF PROCEEDS.] 
 18.31     (a) $22,000,000 of the amounts remitted under this chapter 
 18.32  must be deposited in the state treasury and credited to the 
 18.33  solid waste fund established in section 115B.42. 
 18.34     (b) The remainder, less the department of revenue's costs 
 18.35  of administering the program, must be deposited into the general 
 18.36  fund.  At least $25,500,000 must be appropriated for programs 
 19.1   and functions related to reducing the quantity and toxicity of 
 19.2   solid waste, recycling, household hazardous waste management, 
 19.3   and other similarly related programs.  Appropriations may be 
 19.4   made in block grants to political subdivisions or in competitive 
 19.5   grants.  Money may also be used by the office of environmental 
 19.6   assistance and the pollution control agency in helping to 
 19.7   administer and enforce the programs and functions identified in 
 19.8   section 115A.55. 
 19.9      (c) Any amount of the money deposited into the solid waste 
 19.10  fund in section 115B.42 and the general fund above the 
 19.11  $47,500,000 annually specified in paragraphs (a) and (b) must be 
 19.12  appropriated from the general fund either to the solid waste 
 19.13  fund established in section 115B.42 or to the office of 
 19.14  environmental assistance for programs and functions related to 
 19.15  reducing the quantity and toxicity of solid waste, recycling, 
 19.16  household hazardous waste management, and other similarly 
 19.17  related programs. 
 19.18     (d) At least $14,000,000 of the amount deposited into the 
 19.19  general fund under paragraph (b) must be appropriated for block 
 19.20  grants, as specified under section 115A.557, subdivision 1, for 
 19.21  the purposes described in section 115A.557, subdivision 2.  Any 
 19.22  of the amounts distributed to political subdivisions under 
 19.23  section 115A.557 must be distributed according to the formula 
 19.24  established in section 115A.557, subdivision 1. 
 19.25     (e) An additional $6,500,000 of the amount deposited into 
 19.26  the general fund under paragraph (b) shall be appropriated to 
 19.27  the office of environmental assistance for activities to reduce 
 19.28  the amount and toxicity of solid waste.  At least $6,000,000 
 19.29  shall be block grants to political subdivisions distributed 
 19.30  using the formula established in section 115A.557, subdivision 1.
 19.31     (f) The amounts retained by the department of revenue shall 
 19.32  be deposited in the revenue department's solid waste tax costs 
 19.33  of administration fund which is hereby created.  Money in this 
 19.34  fund is appropriated to the commissioner of revenue to reimburse 
 19.35  the department of revenue for the costs incurred in 
 19.36  administering this chapter. 
 20.1      (g) Based on the reporting from the commissioner of revenue 
 20.2   on total collections from the tax imposed in this chapter and on 
 20.3   reporting by the commissioner of the pollution control agency on 
 20.4   program spending and projected needs for the landfill cleanup 
 20.5   program, the commissioner of the agency may certify to the 
 20.6   commissioner of revenue that there is a shortfall in funding 
 20.7   from all existing dedicated revenue sources for the landfill 
 20.8   cleanup program for any fiscal year after 1997.  The 
 20.9   commissioner of revenue may then increase the tax imposed under 
 20.10  sections 297F.03 and 297F.04 proportionately for both mixed 
 20.11  municipal solid waste and non-mixed municipal solid waste by an 
 20.12  amount sufficient to generate revenue equal to the amount of the 
 20.13  shortfall effective the following July 1 and shall provide 
 20.14  notice of the increased tax by May 1 following certification to 
 20.15  persons who are required to collect and remit the solid waste 
 20.16  tax under this chapter. 
 20.17     Sec. 17.  [297F.12] [BAD DEBTS.] 
 20.18     The remitter of the solid waste tax may offset against the 
 20.19  tax payable, with respect to any reporting period, the amount of 
 20.20  tax imposed by this chapter previously remitted to the 
 20.21  commissioner of revenue which qualified as a bad debt under 
 20.22  section 166(a) of the Internal Revenue Code, as amended through 
 20.23  December 31, 1993, during such reporting period, but only in 
 20.24  proportion to the portion of such debt which became 
 20.25  uncollectable. 
 20.26     Sec. 18.  [297F.13] [PENALTY FOR USING GENERAL RATE SALES 
 20.27  LINE.] 
 20.28     If the form prescribed by the commissioner of revenue for 
 20.29  remitting the tax is the sales tax return, then the penalty in 
 20.30  this section applies.  A penalty is imposed for remitting the 
 20.31  solid waste tax using the general rate sales line on the sales 
 20.32  tax return.  The penalty is ten percent of the tax the first 
 20.33  time and 20 percent for the second and subsequent times. 
 20.34     Sec. 19.  [MORATORIUM.] 
 20.35     The commissioner of revenue shall not initiate or continue 
 20.36  any action to collect any underpayment from political 
 21.1   subdivisions, or to reimburse any overpayment to any political 
 21.2   subdivisions, of taxes on solid waste management services under 
 21.3   Minnesota Statutes, section 297A.45, for the period from January 
 21.4   1, 1990, through December 31, 1995. 
 21.5      Sec. 20.  [REPEALER.] 
 21.6      Minnesota Statutes 1996, sections 116.07, subdivision 10; 
 21.7   297A.01, subdivision 21; and 297A.45, are repealed. 
 21.8      Sec. 21.  [EFFECTIVE DATES.] 
 21.9      Sections 1 to 18 and 20 are effective January 1, 1998. 
 21.10     Section 19 is effective the day following final enactment.