HF 2066

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; adopting recommendations 
  1.3             of the sales tax advisory council; changing the base, 
  1.4             payment, and administration of the sales tax; 
  1.5             providing uniform rules for local sales taxes; 
  1.6             amending Minnesota Statutes 1996, sections 289A.11, 
  1.7             subdivision 1; 289A.18, subdivision 4; 289A.20, 
  1.8             subdivision 4; 289A.40, subdivision 2; 289A.56, 
  1.9             subdivision 4; 297A.01, subdivisions 3, 7, 15, and 16; 
  1.10            297A.02, subdivision 2; 297A.023; 297A.14, subdivision 
  1.11            4; 297A.211, subdivision 1; and 297A.25, subdivisions 
  1.12            2, 3, 12, 59, and by adding a subdivision; proposing 
  1.13            coding for new law in Minnesota Statutes, chapter 
  1.14            297A; repealing Minnesota Statutes 1996, sections 
  1.15            289A.60, subdivision 15; 297A.01, subdivision 20; 
  1.16            297A.02, subdivision 5; 297A.15, subdivision 5; and 
  1.17            297A.25, subdivision 29. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1996, section 289A.11, 
  1.20  subdivision 1, is amended to read: 
  1.21     Subdivision 1.  [RETURN REQUIRED.] Except as provided in 
  1.22  section 289A.18, subdivision 4, For the month in which taxes 
  1.23  imposed by sections 297A.01 to 297A.44 are payable, or for which 
  1.24  a return is due, a return for the preceding reporting period 
  1.25  must be filed with the commissioner in the form and manner the 
  1.26  commissioner prescribes.  A person making sales at retail at two 
  1.27  or more places of business may file a consolidated return 
  1.28  subject to rules prescribed by the commissioner.  In computing 
  1.29  the dollar amount of items on the return, the amounts are 
  1.30  rounded off to the nearest whole dollar, disregarding amounts 
  1.31  less than 50 cents and increasing amounts of 50 cents to 99 
  2.1   cents to the next highest dollar. 
  2.2      Notwithstanding this subdivision, a person who is not 
  2.3   required to hold a sales tax permit under chapter 297A and who 
  2.4   makes annual purchases of less than $18,500 that are subject to 
  2.5   the use tax imposed by section 297A.14, may file an annual use 
  2.6   tax return on a form prescribed by the commissioner.  If a 
  2.7   person who qualifies for an annual use tax reporting period is 
  2.8   required to obtain a sales tax permit or makes use tax purchases 
  2.9   in excess of $18,500 during the calendar year, the reporting 
  2.10  period must be considered ended at the end of the month in which 
  2.11  the permit is applied for or the purchase in excess of $18,500 
  2.12  is made and a return must be filed for the preceding reporting 
  2.13  period. 
  2.14     Sec. 2.  Minnesota Statutes 1996, section 289A.18, 
  2.15  subdivision 4, is amended to read: 
  2.16     Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
  2.17  tax returns must be filed on or before the 20th day of the month 
  2.18  following the close of the preceding reporting period, except 
  2.19  that annual use tax returns provided for under section 289A.11, 
  2.20  subdivision 1, must be filed by April 15 following the close of 
  2.21  the calendar year, in the case of individuals.  Annual use tax 
  2.22  returns of businesses, including sole proprietorships, and 
  2.23  annual sales tax returns must be filed by February 5 following 
  2.24  the close of the calendar year.  
  2.25     (b) Except for the return for the June reporting period, 
  2.26  which is due on the following August 25, Returns filed by 
  2.27  retailers required to remit liabilities by means of funds 
  2.28  transfer under section 289A.20, subdivision 4, paragraph (d), 
  2.29  are due on or before the 25th day of the month following the 
  2.30  close of the preceding reporting period.  
  2.31     (c) If a retailer has an average sales and use tax 
  2.32  liability, including local sales and use taxes administered by 
  2.33  the commissioner, equal to or less than $500 per month in any 
  2.34  quarter of a calendar year, and has substantially complied with 
  2.35  the tax laws during the preceding four calendar quarters, the 
  2.36  retailer may request authorization to file and pay the taxes 
  3.1   quarterly in subsequent calendar quarters.  The authorization 
  3.2   remains in effect during the period in which the retailer's 
  3.3   quarterly returns reflect sales and use tax liabilities of less 
  3.4   than $1,500 and there is continued compliance with state tax 
  3.5   laws. 
  3.6      (d) If a retailer has an average sales and use tax 
  3.7   liability, including local sales and use taxes administered by 
  3.8   the commissioner, equal to or less than $100 per month during a 
  3.9   calendar year, and has substantially complied with the tax laws 
  3.10  during that period, the retailer may request authorization to 
  3.11  file and pay the taxes annually in subsequent years.  The 
  3.12  authorization remains in effect during the period in which the 
  3.13  retailer's annual returns reflect sales and use tax liabilities 
  3.14  of less than $1,200 and there is continued compliance with state 
  3.15  tax laws. 
  3.16     (e) The commissioner may also grant quarterly or annual 
  3.17  filing and payment authorizations to retailers if the 
  3.18  commissioner concludes that the retailers' future tax 
  3.19  liabilities will be less than the monthly totals identified in 
  3.20  paragraphs (c) and (d).  An authorization granted under this 
  3.21  paragraph is subject to the same conditions as an authorization 
  3.22  granted under paragraphs (c) and (d). 
  3.23     Sec. 3.  Minnesota Statutes 1996, section 289A.20, 
  3.24  subdivision 4, is amended to read: 
  3.25     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  3.26  chapter 297A are due and payable to the commissioner monthly on 
  3.27  or before the 20th day of the month following the month in which 
  3.28  the taxable event occurred or following another reporting period 
  3.29  as the commissioner prescribes, except that use taxes due on an 
  3.30  annual use tax return as provided under section 289A.11, 
  3.31  subdivision 1, are payable by April 15 following the close of 
  3.32  the calendar year. 
  3.33     (b) A vendor having a liability of $120,000 or more during 
  3.34  a fiscal year ending June 30 must remit the June liability for 
  3.35  the next year in the following manner: 
  3.36     (1) Two business days before June 30 of the year, the 
  4.1   vendor must remit 75 percent of the estimated June liability to 
  4.2   the commissioner.  
  4.3      (2) On or before August 14 of the year, the vendor must pay 
  4.4   any additional amount of tax not remitted in June. 
  4.5      (c) A vendor having a liability of $120,000 or more during 
  4.6   a fiscal year ending June 30 must remit all liabilities in the 
  4.7   subsequent calendar year by means of a funds transfer as defined 
  4.8   in section 336.4A-104, paragraph (a).  The funds transfer 
  4.9   payment date, as defined in section 336.4A-401, must be on or 
  4.10  before the 14th day of the month following the month in which 
  4.11  the taxable event occurred, except for 75 percent of the 
  4.12  estimated June liability, which is due two business days before 
  4.13  June 30.  The remaining amount of the June liability is due on 
  4.14  August 14.  If the date the tax is due is not a funds transfer 
  4.15  business day, as defined in section 336.4A-105, paragraph (a), 
  4.16  clause (4), the payment date must be on or before the funds 
  4.17  transfer business day next following the date the tax is due. 
  4.18     (d) (c) If the vendor required to remit by electronic funds 
  4.19  transfer as provided in paragraph (c) (b) is unable due to 
  4.20  reasonable cause to determine the actual sales and use tax due 
  4.21  on or before the due date for payment, the vendor may remit an 
  4.22  estimate of the tax owed using one of the following options: 
  4.23     (1) 100 percent of the tax reported on the previous month's 
  4.24  sales and use tax return; 
  4.25     (2) 100 percent of the tax reported on the sales and use 
  4.26  tax return for the same month in the previous calendar year; or 
  4.27     (3) 95 percent of the actual tax due. 
  4.28     Any additional amount of tax that is not remitted on or 
  4.29  before the due date for payment, must be remitted with the 
  4.30  return.  If a vendor fails to remit the actual liability or does 
  4.31  not remit using one of the estimate options by the due date for 
  4.32  payment, the vendor must remit actual liability as provided in 
  4.33  paragraph (c) (b) in all subsequent periods.  This paragraph 
  4.34  does not apply to the June sales and use tax liability. 
  4.35     Sec. 4.  Minnesota Statutes 1996, section 289A.40, 
  4.36  subdivision 2, is amended to read: 
  5.1      Subd. 2.  [BAD DEBT LOSS.] If a claim relates to an 
  5.2   overpayment because of a failure to deduct a loss due to a bad 
  5.3   debt or to a security becoming worthless, the claim is 
  5.4   considered timely if filed within seven years from the date 
  5.5   prescribed for the filing of the return.  A claim relating to an 
  5.6   overpayment of taxes under chapter 297A must be filed within 
  5.7   3-1/2 years from the date prescribed for filing the return, plus 
  5.8   any extensions granted for filing the return, but only if filed 
  5.9   within the extended time, or within one year from the date the 
  5.10  taxpayer's federal income tax return is timely filed claiming 
  5.11  the bad debt deduction, whichever period expires later.  The 
  5.12  refund or credit is limited to the amount of overpayment 
  5.13  attributable to the loss. 
  5.14     Sec. 5.  Minnesota Statutes 1996, section 289A.56, 
  5.15  subdivision 4, is amended to read: 
  5.16     Subd. 4.  [CAPITAL EQUIPMENT REFUNDS; REFUNDS TO 
  5.17  PURCHASERS.] Notwithstanding subdivision 3, for refunds payable 
  5.18  under sections section 297A.15, subdivision 5, and 289A.50, 
  5.19  subdivision 2a, interest is computed from the date the refund 
  5.20  claim is filed with the commissioner.  For refunds payable under 
  5.21  section 289A.50, subdivision 2a, interest is computed from the 
  5.22  20th day of the month following the month of the invoice date 
  5.23  for the purchase which is the subject of the refund. 
  5.24     Sec. 6.  Minnesota Statutes 1996, section 297A.01, 
  5.25  subdivision 3, is amended to read: 
  5.26     Subd. 3.  A "sale" and a "purchase" includes, but is not 
  5.27  limited to, each of the following transactions: 
  5.28     (a) Any transfer of title or possession, or both, of 
  5.29  tangible personal property, whether absolutely or conditionally, 
  5.30  and the leasing of or the granting of a license to use or 
  5.31  consume tangible personal property other than manufactured homes 
  5.32  used for residential purposes for a continuous period of 30 days 
  5.33  or more, for a consideration in money or by exchange or barter; 
  5.34     (b) The production, fabrication, printing, or processing of 
  5.35  tangible personal property for a consideration for consumers who 
  5.36  furnish either directly or indirectly the materials used in the 
  6.1   production, fabrication, printing, or processing; 
  6.2      (c) The furnishing, preparing, or serving for a 
  6.3   consideration of food, meals, or drinks.  "Sale" or "purchase" 
  6.4   does not include: 
  6.5      (1) meals or drinks served to patients, inmates, or persons 
  6.6   residing at hospitals, sanitariums, nursing homes, senior 
  6.7   citizens homes, and correctional, detention, and detoxification 
  6.8   facilities; 
  6.9      (2) meals or drinks purchased for and served exclusively to 
  6.10  individuals who are 60 years of age or over and their spouses or 
  6.11  to the handicapped and their spouses by governmental agencies, 
  6.12  nonprofit organizations, agencies, or churches or pursuant to 
  6.13  any program funded in whole or part through 42 USCA sections 
  6.14  3001 through 3045, wherever delivered, prepared or served; or 
  6.15     (3) meals and lunches served at public and private schools, 
  6.16  universities, or colleges. 
  6.17  Notwithstanding section 297A.25, subdivision 2, taxable food or 
  6.18  meals include, but are not limited to, the following:  
  6.19     (i) heated food or drinks; prepared by the retailer for 
  6.20  immediate consumption either on or off the retailer's premises.  
  6.21  For purposes of this subdivision, "food or drinks prepared for 
  6.22  immediate consumption" includes any food product upon which an 
  6.23  act of preparation including, but not limited to, cooking, 
  6.24  mixing, sandwich making, blending, heating, or pouring has been 
  6.25  performed by the retailer so the food product may be immediately 
  6.26  consumed by the purchaser.  For purposes of this subdivision, 
  6.27  "premises" means the total space and facilities, including 
  6.28  buildings, grounds, and parking lots that are made available or 
  6.29  that are available for use by the retailer or customer for the 
  6.30  purpose of sale or consumption of prepared food and drinks.  
  6.31  Food and drinks sold within a building or grounds which require 
  6.32  an admission charge for entrance are presumed to be sold for 
  6.33  consumption on the premises.  The premises of a caterer is the 
  6.34  place where the catered food or drinks are served; 
  6.35     (ii) sandwiches prepared by the retailer; 
  6.36     (iii) single sales of prepackaged ice cream or ice milk 
  7.1   novelties prepared by the retailer; 
  7.2      (iv) hand-prepared or dispensed ice cream or ice milk (ii) 
  7.3   ice cream, ice milk, or frozen yogurt products including 
  7.4   novelties, cones, sundaes, and snow cones, sold in single or 
  7.5   individual servings.  For purposes of this subdivision, "single 
  7.6   or individual servings" does not include products prepackaged 
  7.7   and sold in bulk containers or packaging; 
  7.8      (v) (iii) soft drinks and other beverages prepared or 
  7.9   served by the retailer; including all carbonated and 
  7.10  noncarbonated beverages or drinks sold in liquid form except 
  7.11  beverages or drinks which contain a primary dairy product or 
  7.12  dairy ingredient base, beverages or drinks containing 15 or more 
  7.13  percent fruit juice, or noncarbonated and noneffervescent 
  7.14  bottled water sold in individual containers of one-half gallon 
  7.15  or more in size; 
  7.16     (vi) (iv) gum;, candy, and candy products, except when sold 
  7.17  for fundraising purposes by a nonprofit organization that 
  7.18  provides educational and social activities primarily for young 
  7.19  people 18 years of age and under; 
  7.20     (vii) (v) ice; 
  7.21     (viii) (vi) all food sold in from vending machines, 
  7.22  pushcarts, lunch carts, motor vehicles, or any other form of 
  7.23  vehicle except home delivery vehicles; 
  7.24     (ix) (vii) party trays prepared by the retailers; and 
  7.25     (x) (viii) all meals and single servings of packaged snack 
  7.26  food, single cans or bottles of pop, sold in restaurants and 
  7.27  bars; and 
  7.28     (ix) bakery products, sold in single or individual servings.
  7.29  For purposes of this subdivision, "single or individual 
  7.30  servings" does not include products prepackaged and sold in bulk 
  7.31  containers or packaging. 
  7.32     (d) The granting of the privilege of admission to places of 
  7.33  amusement, recreational areas, or athletic events, except a 
  7.34  world championship football game sponsored by the national 
  7.35  football league, and the privilege of having access to and the 
  7.36  use of amusement devices, tanning facilities, reducing salons, 
  8.1   steam baths, turkish baths, health clubs, and spas or athletic 
  8.2   facilities; 
  8.3      (e) The furnishing for a consideration of lodging and 
  8.4   related services by a hotel, rooming house, tourist court, motel 
  8.5   or trailer camp and of the granting of any similar license to 
  8.6   use real property other than the renting or leasing thereof for 
  8.7   a continuous period of 30 days or more; 
  8.8      (f) The furnishing for a consideration of electricity, gas, 
  8.9   water, or steam for use or consumption within this state, or 
  8.10  local exchange telephone service, intrastate toll service, and 
  8.11  interstate toll service, if that service originates from and is 
  8.12  charged to a telephone located in this state.  Telephone service 
  8.13  includes paging services and private communication service, as 
  8.14  defined in United States Code, title 26, section 4252(d), except 
  8.15  for private communication service purchased by an agent acting 
  8.16  on behalf of the state lottery.  The furnishing for a 
  8.17  consideration of access to telephone services by a hotel to its 
  8.18  guests is a sale under this clause.  Sales by municipal 
  8.19  corporations in a proprietary capacity are included in the 
  8.20  provisions of this clause.  The furnishing of water and sewer 
  8.21  services for residential use shall not be considered a sale.  
  8.22  The sale of natural gas to be used as a fuel in vehicles 
  8.23  propelled by natural gas shall not be considered a sale for the 
  8.24  purposes of this section; 
  8.25     (g) The furnishing for a consideration of cable television 
  8.26  services, including charges for basic service, charges for 
  8.27  premium service, and any other charges for any other 
  8.28  pay-per-view, monthly, or similar television services; 
  8.29     (h) The furnishing for a consideration of parking services, 
  8.30  whether on a contractual, hourly, or other periodic basis, 
  8.31  except for parking at a meter; 
  8.32     (i) The furnishing for a consideration of services listed 
  8.33  in this paragraph: 
  8.34     (i) laundry and dry cleaning services including cleaning, 
  8.35  pressing, repairing, altering, and storing clothes, linen 
  8.36  services and supply, cleaning and blocking hats, and carpet, 
  9.1   drapery, upholstery, and industrial cleaning.  Laundry and dry 
  9.2   cleaning services do not include services provided by coin 
  9.3   operated facilities operated by the customer; 
  9.4      (ii) motor vehicle washing, waxing, and cleaning services, 
  9.5   including services provided by coin-operated facilities operated 
  9.6   by the customer, and rustproofing, undercoating, and towing of 
  9.7   motor vehicles; 
  9.8      (iii) building and residential cleaning, maintenance, and 
  9.9   disinfecting and exterminating services; 
  9.10     (iv) detective services, security services, burglar, fire 
  9.11  alarm, and armored car services not including services performed 
  9.12  within the jurisdiction they serve by off-duty licensed peace 
  9.13  officers as defined in section 626.84, subdivision 1; 
  9.14     (v) pet grooming services; 
  9.15     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
  9.16  services; garden planting and maintenance; tree, bush, and shrub 
  9.17  pruning, bracing, spraying, and surgery; tree, bush, shrub and 
  9.18  stump removal; and tree trimming for public utility lines.  
  9.19  Services performed under a construction contract for the 
  9.20  installation of shrubbery, plants, sod, trees, bushes, and 
  9.21  similar items are not taxable; 
  9.22     (vii) mixed municipal solid waste management services as 
  9.23  described in section 297A.45; 
  9.24     (viii) massages, except when provided by a licensed health 
  9.25  care facility or professional or upon written referral from a 
  9.26  licensed health care facility or professional for treatment of 
  9.27  illness, injury, or disease; and 
  9.28     (ix) the furnishing for consideration of lodging, board and 
  9.29  care services for animals in kennels and other similar 
  9.30  arrangements, but excluding veterinary and horse boarding 
  9.31  services. 
  9.32  The services listed in this paragraph are taxable under section 
  9.33  297A.02 if the service is performed wholly within Minnesota or 
  9.34  if the service is performed partly within and partly without 
  9.35  Minnesota and the greater proportion of the service is performed 
  9.36  in Minnesota, based on the cost of performance.  In applying the 
 10.1   provisions of this chapter, the terms "tangible personal 
 10.2   property" and "sales at retail" include taxable services and the 
 10.3   provision of taxable services, unless specifically provided 
 10.4   otherwise.  Services performed by an employee for an employer 
 10.5   are not taxable under this paragraph.  Services performed by a 
 10.6   partnership or association for another partnership or 
 10.7   association are not taxable under this paragraph if one of the 
 10.8   entities owns or controls more than 80 percent of the voting 
 10.9   power of the equity interest in the other entity.  Services 
 10.10  performed between members of an affiliated group of corporations 
 10.11  are not taxable.  For purposes of this section, "affiliated 
 10.12  group of corporations" includes those entities that would be 
 10.13  classified as a member of an affiliated group under United 
 10.14  States Code, title 26, section 1504, and who are eligible to 
 10.15  file a consolidated tax return for federal income tax purposes; 
 10.16     (j) A "sale" and a "purchase" includes the transfer of 
 10.17  computer software, meaning information and directions that 
 10.18  dictate the function performed by data processing equipment.  A 
 10.19  "sale" and a "purchase" does not include the design, 
 10.20  development, writing, translation, fabrication, lease, or 
 10.21  transfer for a consideration of title or possession of a custom 
 10.22  computer program; and 
 10.23     (k) The granting of membership in a club, association, or 
 10.24  other organization if: 
 10.25     (1) the club, association, or other organization makes 
 10.26  available for the use of its members sports and athletic 
 10.27  facilities (without regard to whether a separate charge is 
 10.28  assessed for use of the facilities); and 
 10.29     (2) use of the sports and athletic facilities is not made 
 10.30  available to the general public on the same basis as it is made 
 10.31  available to members.  
 10.32  Granting of membership includes both one-time initiation fees 
 10.33  and periodic membership dues.  Sports and athletic facilities 
 10.34  include golf courses, tennis, racquetball, handball and squash 
 10.35  courts, basketball and volleyball facilities, running tracks, 
 10.36  exercise equipment, swimming pools, and other similar athletic 
 11.1   or sports facilities.  The provisions of this paragraph do not 
 11.2   apply to camps or other recreation facilities owned and operated 
 11.3   by an exempt organization under section 501(c)(3) of the 
 11.4   Internal Revenue Code of 1986, as amended through December 31, 
 11.5   1992, for educational and social activities for young people 
 11.6   primarily age 18 and under.  
 11.7      Sec. 7.  Minnesota Statutes 1996, section 297A.01, 
 11.8   subdivision 7, is amended to read: 
 11.9      Subd. 7.  "Storage" and "use" do not include the keeping, 
 11.10  or retaining or exercising of any right or power over in a 
 11.11  public warehouse of tangible personal property or tickets or 
 11.12  admissions to places of amusement or athletic events when 
 11.13  shipped or brought into Minnesota by common carrier, for the 
 11.14  purpose of subsequently being transported outside Minnesota and 
 11.15  thereafter used solely outside Minnesota, except in the course 
 11.16  of interstate commerce, or for the purpose of being processed, 
 11.17  fabricated or manufactured into, attached to or incorporated 
 11.18  into other tangible personal property to be transported outside 
 11.19  Minnesota and not thereafter returned to a point within 
 11.20  Minnesota, except in the course of interstate commerce. 
 11.21     Sec. 8.  Minnesota Statutes 1996, section 297A.01, 
 11.22  subdivision 15, is amended to read: 
 11.23     Subd. 15.  "Farm machinery" means new or used machinery, 
 11.24  equipment, implements, accessories, and contrivances used 
 11.25  directly and principally in the production for sale, but not 
 11.26  including the processing, of livestock, dairy animals, dairy 
 11.27  products, poultry and poultry products, fruits, vegetables, 
 11.28  forage, grains and bees and apiary products.  "Farm machinery"  
 11.29  includes: 
 11.30     (1) machinery for the preparation, seeding or cultivation 
 11.31  of soil for growing agricultural crops and sod, harvesting and 
 11.32  threshing of agricultural products, harvesting or mowing of sod, 
 11.33  and certain machinery for dairy, livestock and poultry farms; 
 11.34     (2) barn cleaners, milking systems, grain dryers, automatic 
 11.35  feeding systems and similar installations, whether or not the 
 11.36  equipment is installed by the seller and becomes part of the 
 12.1   real property; 
 12.2      (3) irrigation equipment sold for exclusively agricultural 
 12.3   use, including pumps, pipe fittings, valves, sprinklers and 
 12.4   other equipment necessary to the operation of an irrigation 
 12.5   system when sold as part of an irrigation system, whether or not 
 12.6   the equipment is installed by the seller and becomes part of the 
 12.7   real property; 
 12.8      (4) logging equipment, including chain saws used for 
 12.9   commercial logging; 
 12.10     (5) fencing used for the containment of farmed cervidae, as 
 12.11  defined in section 17.451, subdivision 2; and 
 12.12     (6) primary and backup generator units used to generate 
 12.13  electricity for the purpose of operating farm machinery, as 
 12.14  defined in this subdivision, or providing light or space heating 
 12.15  necessary for the production of livestock, dairy animals, dairy 
 12.16  products, or poultry and poultry products.  
 12.17     Repair or replacement parts for farm machinery shall not 
 12.18  be, except tires, are included in the definition of farm 
 12.19  machinery if the part replaces a farm machinery part assigned a 
 12.20  specific or generic part number by the manufacturer of the farm 
 12.21  machinery.  
 12.22     Tools, shop equipment, grain bins, feed bunks, fencing 
 12.23  material except fencing material covered by clause (5), 
 12.24  communication equipment and other farm supplies shall not be 
 12.25  considered to be farm machinery.  "Farm machinery" does not 
 12.26  include motor vehicles taxed under chapter 297B, snowmobiles, 
 12.27  snow blowers, lawn mowers except those used in the production of 
 12.28  sod for sale, garden-type tractors or garden tillers and the 
 12.29  repair and replacement parts for those vehicles and machines. 
 12.30     Sec. 9.  Minnesota Statutes 1996, section 297A.01, 
 12.31  subdivision 16, is amended to read: 
 12.32     Subd. 16.  [CAPITAL EQUIPMENT.] (a) Capital equipment means 
 12.33  machinery and equipment purchased or leased for use in this 
 12.34  state and used by the purchaser or lessee primarily for 
 12.35  manufacturing, fabricating, mining, or refining tangible 
 12.36  personal property to be sold ultimately at retail and for 
 13.1   electronically transmitting results retrieved by a customer of 
 13.2   an on-line computerized data retrieval system.  
 13.3      (b) Capital equipment includes all machinery and equipment 
 13.4   that is essential to the integrated production process.  Capital 
 13.5   equipment includes, but is not limited to: 
 13.6      (1) machinery and equipment used or required to operate, 
 13.7   control, or regulate the production equipment; 
 13.8      (2) machinery and equipment used for research and 
 13.9   development, design, quality control, and testing activities; 
 13.10     (3) environmental control devices that are used to maintain 
 13.11  conditions such as temperature, humidity, light, or air pressure 
 13.12  when those conditions are essential to and are part of the 
 13.13  production process; or 
 13.14     (4) materials and supplies necessary to construct and 
 13.15  install machinery or equipment.; 
 13.16     (5) repair and replacement parts, including accessories, 
 13.17  whether purchased as spare parts, repair parts, or as upgrades 
 13.18  or modifications to machinery or equipment; 
 13.19     (6) materials used for foundations that support machinery 
 13.20  or equipment; or 
 13.21     (7) materials used to construct and install special purpose 
 13.22  buildings used in the production process. 
 13.23     (c) Capital equipment does not include the following: 
 13.24     (1) repair or replacement parts, including accessories, 
 13.25  whether purchased as spare parts, repair parts, or as upgrades 
 13.26  or modifications, and whether purchased before or after the 
 13.27  machinery or equipment is placed into service.  Parts or 
 13.28  accessories are treated as capital equipment only to the extent 
 13.29  that they are a part of and are essential to the operation of 
 13.30  the machinery or equipment as initially purchased; 
 13.31     (2) motor vehicles taxed under chapter 297B; 
 13.32     (3) (2) machinery or equipment used to receive or store raw 
 13.33  materials; 
 13.34     (4) (3) building materials; 
 13.35     (5) (4) machinery or equipment used for nonproduction 
 13.36  purposes, including, but not limited to, the following:  
 14.1   machinery and equipment used for plant security, fire 
 14.2   prevention, first aid, and hospital stations; machinery and 
 14.3   equipment used in support operations or for administrative 
 14.4   purposes; machinery and equipment used solely for pollution 
 14.5   control, prevention, or abatement; and machinery and equipment 
 14.6   used in plant cleaning, disposal of scrap and waste, plant 
 14.7   communications, space heating, lighting, or safety; 
 14.8      (6) (5) "farm machinery" as defined by subdivision 15, and 
 14.9   "aquaculture production equipment" as defined by subdivision 19, 
 14.10  and "replacement capital equipment" as defined by subdivision 
 14.11  20; or 
 14.12     (7) (6) any other item that is not essential to the 
 14.13  integrated process of manufacturing, fabricating, mining, or 
 14.14  refining. 
 14.15     (d) For purposes of this subdivision: 
 14.16     (1) "Equipment" means independent devices or tools separate 
 14.17  from machinery but essential to an integrated production 
 14.18  process, including computers and software, used in operating, 
 14.19  controlling, or regulating machinery and equipment; and any 
 14.20  subunit or assembly comprising a component of any machinery or 
 14.21  accessory or attachment parts of machinery, such as tools, dies, 
 14.22  jigs, patterns, and molds. 
 14.23     (2) "Fabricating" means to make, build, create, produce, or 
 14.24  assemble components or property to work in a new or different 
 14.25  manner. 
 14.26     (3) "Machinery" means mechanical, electronic, or electrical 
 14.27  devices, including computers and software, that are purchased or 
 14.28  constructed to be used for the activities set forth in paragraph 
 14.29  (a), beginning with the removal of raw materials from inventory 
 14.30  through the completion of the product, including packaging of 
 14.31  the product. 
 14.32     (4) "Manufacturing" means an operation or series of 
 14.33  operations where raw materials are changed in form, composition, 
 14.34  or condition by machinery and equipment and which results in the 
 14.35  production of a new article of tangible personal property.  For 
 14.36  purposes of this subdivision, "manufacturing" includes the 
 15.1   generation of electricity or steam to be sold at retail. 
 15.2      (5) "Mining" means the extraction of minerals, ores, stone, 
 15.3   and peat. 
 15.4      (6) "On-line data retrieval system" means a system whose 
 15.5   cumulation of information is equally available and accessible to 
 15.6   all its customers. 
 15.7      (7) "Pollution control equipment" means machinery and 
 15.8   equipment used to eliminate, prevent, or reduce pollution 
 15.9   resulting from an activity described in paragraph (a). 
 15.10     (8) "Primarily" means machinery and equipment used 50 
 15.11  percent or more of the time in an activity described in 
 15.12  paragraph (a). 
 15.13     (9) "Refining" means the process of converting a natural 
 15.14  resource to a product, including the treatment of water to be 
 15.15  sold at retail. 
 15.16     (e) For purposes of this subdivision the requirement that 
 15.17  the machinery or equipment "must be used by the purchaser or 
 15.18  lessee" means that the person who purchases or leases the 
 15.19  machinery or equipment must be the one who uses it for the 
 15.20  qualifying purpose.  When a contractor buys and installs 
 15.21  machinery or equipment as part of an improvement to real 
 15.22  property, only the contractor is considered the purchaser. 
 15.23     (f) Notwithstanding prior provisions of this subdivision, 
 15.24  machinery and equipment purchased or leased to replace machinery 
 15.25  and equipment used in the mining or production of taconite shall 
 15.26  qualify as capital equipment. 
 15.27     Sec. 10.  Minnesota Statutes 1996, section 297A.02, 
 15.28  subdivision 2, is amended to read: 
 15.29     Subd. 2.  [MACHINERY AND EQUIPMENT.] Notwithstanding the 
 15.30  provisions of subdivision 1, the rate of the excise tax imposed 
 15.31  upon sales of farm machinery and aquaculture production 
 15.32  equipment is 2.5 percent. 
 15.33     Sec. 11.  Minnesota Statutes 1996, section 297A.023, is 
 15.34  amended to read: 
 15.35     297A.023 [REMITTANCE OF AMOUNTS COLLECTED AS TAXES.] 
 15.36     Subdivision 1.  [AMOUNTS COLLECTED; REFUND 
 16.1   REQUIREMENTS.] Except as provided in subdivision 2, any amounts 
 16.2   collected, even if erroneously or illegally collected, from a 
 16.3   purchaser under a representation that they are taxes imposed 
 16.4   under this chapter are state funds from the time of collection 
 16.5   and must be reported on a return filed with the commissioner and 
 16.6   are not subject to refund without proof that such amounts have 
 16.7   been refunded or credited to the purchaser by the seller. 
 16.8      Subd. 2.  [DEDUCTION FOR TAXES.] A retailer who in the 
 16.9   current year is not required by section 289A.20, subdivision 4, 
 16.10  to remit taxes imposed under this chapter by means of electronic 
 16.11  funds transfer is entitled to deduct and retain from the amount 
 16.12  of those taxes otherwise required to be remitted, if timely 
 16.13  remitted, a retail merchant's collection allowance equal to the 
 16.14  lesser of (i) $100; or (ii) the taxpayer's annual liability for 
 16.15  state general sales taxes imposed at the 6.5 percent rate under 
 16.16  section 297A.02, except taxes on mixed municipal solid waste 
 16.17  management services. 
 16.18     Sec. 12.  Minnesota Statutes 1996, section 297A.14, 
 16.19  subdivision 4, is amended to read: 
 16.20     Subd. 4.  [DE MINIMIS EXEMPTION.] Purchases subject to use 
 16.21  tax under this section are exempt if (1) the purchase is made by 
 16.22  an individual for personal use a person, other than a person who 
 16.23  has or is obligated to have a permit under section 297A.04, and 
 16.24  (2) the total purchases that are subject to the use tax do not 
 16.25  exceed $770 in the calendar year.  For purposes of this 
 16.26  subdivision, "personal use" includes purchases for gifts.  If an 
 16.27  individual makes purchases, which are subject to use tax, of 
 16.28  more than $770 in the calendar year the individual must pay the 
 16.29  use tax on the entire amount. 
 16.30     Sec. 13.  Minnesota Statutes 1996, section 297A.211, 
 16.31  subdivision 1, is amended to read: 
 16.32     Subdivision 1.  Every person, as defined in this chapter, 
 16.33  who is engaged in interstate for-hire transportation of tangible 
 16.34  personal property or passengers by motor vehicle may at their 
 16.35  option, under rules prescribed by the commissioner, register as 
 16.36  retailers and pay the taxes imposed by this chapter in 
 17.1   accordance with this section.  Any taxes paid under this section 
 17.2   are deemed use taxes, except local sales taxes when no 
 17.3   corresponding local use tax is imposed.  Persons referred to 
 17.4   herein are:  (1) persons possessing a certificate or permit or 
 17.5   having completed a registration process that authorizes for-hire 
 17.6   transportation of property or passengers from the United States 
 17.7   Department of Transportation, the transportation regulation 
 17.8   board, or the department of transportation; or (2) persons 
 17.9   transporting commodities defined as "exempt" in for-hire 
 17.10  transportation in interstate commerce; or (3) persons who, 
 17.11  pursuant to contracts with persons described in clause (1) or 
 17.12  (2) above, transport tangible personal property in interstate 
 17.13  commerce.  Persons qualifying under clauses (2) and (3) must 
 17.14  maintain on a current basis the same type of mileage records 
 17.15  that are required by persons specified in clause (1) by the 
 17.16  United States Department of Transportation.  Persons who in the 
 17.17  course of their business are transporting solely their own goods 
 17.18  in interstate commerce may also register as retailers pursuant 
 17.19  to rules prescribed by the commissioner and pay the taxes 
 17.20  imposed by this chapter in accordance with this section.  
 17.21     Sec. 14.  Minnesota Statutes 1996, section 297A.25, 
 17.22  subdivision 2, is amended to read: 
 17.23     Subd. 2.  [FOOD PRODUCTS.] The gross receipts from the sale 
 17.24  of food products including but not limited to cereal and cereal 
 17.25  products, butter, cheese, milk and milk products, oleomargarine, 
 17.26  meat and meat products, fish and fish products, eggs and egg 
 17.27  products, vegetables and vegetable products, fruit and fruit 
 17.28  products, spices and salt, sugar and sugar products, coffee and 
 17.29  coffee substitutes, tea, cocoa and cocoa products, and food 
 17.30  products which are not taxable pursuant to section 297A.01, 
 17.31  subdivision 3, clause (c) are exempt.  This exemption does not 
 17.32  include the following:  
 17.33     (1) candy and candy products, except when sold for 
 17.34  fundraising purposes by a nonprofit organization that provides 
 17.35  educational and social activities for young people primarily 
 17.36  aged 18 and under; 
 18.1      (2) carbonated beverages, beverages commonly referred to as 
 18.2   soft drinks containing less than 15 percent fruit juice, or 
 18.3   bottled water other than noncarbonated and noneffervescent 
 18.4   bottled water sold in individual containers of one-half gallon 
 18.5   or more in size. 
 18.6      Sec. 15.  Minnesota Statutes 1996, section 297A.25, 
 18.7   subdivision 3, is amended to read: 
 18.8      Subd. 3.  [MEDICINES; MEDICAL DEVICES.] (a) The gross 
 18.9   receipts from the sale of prescribed the following items are 
 18.10  exempt: 
 18.11     (1) legend drugs, prescribed medicine and insulin, intended 
 18.12  for use, internal or external, in the cure, mitigation, 
 18.13  treatment or prevention of illness or disease in human beings 
 18.14  are exempt, together with; 
 18.15     (2) prescription glasses,; 
 18.16     (3) fever thermometers,; 
 18.17     (4) therapeutic, and prosthetic devices.  "Prescribed 
 18.18  drugs" or "prescribed medicine" includes over-the-counter drugs 
 18.19  or medicine prescribed by a licensed physician.  "Therapeutic 
 18.20  devices" includes; 
 18.21     (5) reusable finger pricking devices for the extraction of 
 18.22  blood, blood glucose monitoring machines, and other diagnostic 
 18.23  agents used in diagnosing, monitoring, or treating diabetes.; 
 18.24     (6) nonprescription analgesics consisting principally 
 18.25  (determined by the weight of all ingredients) of acetaminophen, 
 18.26  acetylsalicylic acid, ibuprofen, ketoprofen, naproxen, and other 
 18.27  nonprescription analgesics that are approved by the United 
 18.28  States Food and Drug Administration for internal use by human 
 18.29  beings, or a combination thereof are exempt; and 
 18.30     (7) medical supplies purchased by a health care provider 
 18.31  for treatment of a person while a patient or resident of a 
 18.32  health care facility. 
 18.33     (b) This exemption does not apply to medical equipment or 
 18.34  components of medical equipment, purchased for use in providing 
 18.35  medical services. 
 18.36     (c) The following terms have the meanings given for 
 19.1   purposes of this subdivision: 
 19.2      (1) "Legend drug" means a legend drug as defined in section 
 19.3   151.01, subdivision 17. 
 19.4      (2) "Medical supplies" means bandages, gauze pads and 
 19.5   strips, cotton applicators, antiseptics, nonprescription drugs, 
 19.6   eye solution, incontinent pads, tongue depressors, and other 
 19.7   similar products used to provide therapeutic or diagnostic 
 19.8   services. 
 19.9      (3) "Prosthetic and orthopedic devices" means any 
 19.10  apparatus, instrument, device, or equipment used to replace or 
 19.11  substitute for any missing part of the body, to alleviate the 
 19.12  malfunction of any part of the body, or to assist a disabled 
 19.13  person by facilitating the person's mobility.  Prosthetic and 
 19.14  orthopedic devices include artificial limbs, hearing aids, 
 19.15  ostomy appliances or devices, braces, canes, crutches, splints, 
 19.16  surgical supports, and wheelchairs, including motorized 
 19.17  wheelchairs and scooters for the use of persons who are ill or 
 19.18  disabled. 
 19.19     (4) "Therapeutic devices" means devices that are attached 
 19.20  or applied to the human body to cure, heal, or alleviate injury, 
 19.21  illness, or disease, either directly or by administering a 
 19.22  curative agent.  Therapeutic devices include hypodermic needles, 
 19.23  oxygen tents, vaporizers, resuscitators, hospital beds, and 
 19.24  equipment and supplies necessary for dialysis treatment. 
 19.25     Sec. 16.  Minnesota Statutes 1996, section 297A.25, 
 19.26  subdivision 12, is amended to read: 
 19.27     Subd. 12.  [OCCASIONAL SALES.] (a) The gross receipts from 
 19.28  the isolated or occasional sale of tangible personal property in 
 19.29  Minnesota not made in the normal course of business of selling 
 19.30  that kind of property, and the storage, use, or consumption of 
 19.31  property acquired as a result of such a sale are exempt.  
 19.32     (b) This exemption does not apply to sales of tangible 
 19.33  personal property primarily used in a trade or business unless 
 19.34  (1) the sale occurs in a transaction subject to or described in 
 19.35  section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 
 19.36  1031, or 1033 of the Internal Revenue Code of 1986, as amended 
 20.1   through December 31, 1990; (2) the sale is between members of a 
 20.2   controlled group as defined in section 1563(a) of the Internal 
 20.3   Revenue Code of 1986, as amended through December 31, 1990; (3) 
 20.4   the sale is a sale of farm machinery; (4) the sale is a farm 
 20.5   auction sale; (5) the sale is a sale of substantially all of the 
 20.6   assets of a trade or business; or (6) the total amount of gross 
 20.7   receipts from the sale of trade or business property made during 
 20.8   the calendar month of the sale and the preceding 11 calendar 
 20.9   months does not exceed $1,000. 
 20.10     (c) For purposes of this subdivision, the following terms 
 20.11  have the meanings given.  
 20.12     (1) A "farm auction" is a public auction conducted by a 
 20.13  licensed auctioneer if substantially all of the property sold 
 20.14  consists of property used in the trade or business of farming 
 20.15  and property not used primarily in a trade or business. 
 20.16     (2) "Trade or business" includes the assets of a separate 
 20.17  division, branch, or identifiable segment of a trade or business 
 20.18  if, before the sale, the income and expenses attributable to the 
 20.19  separate division, branch, or identifiable segment could be 
 20.20  separately ascertained from the books of account or record (the 
 20.21  lease or rental of an identifiable segment does not qualify for 
 20.22  the exemption). 
 20.23     (3) A "sale of substantially all of the assets of a trade 
 20.24  or business" must occur as a single transaction or a series of 
 20.25  related transactions occurring within the 12-month period 
 20.26  beginning on the date of the first sale of assets intended to 
 20.27  qualify for the exemption provided in paragraph (b), clause (5). 
 20.28     (b) This exemption does not apply to sales by brokers, 
 20.29  agents, or auctioneers who are regularly engaged in the business 
 20.30  of selling tangible personal property at retail. 
 20.31     (c) For purposes of this subdivision, "normal course of 
 20.32  business" means activities that demonstrate a commercial 
 20.33  continuity or consistency of making sales or performing services 
 20.34  to make profit or produce income.  Factors that indicate that a 
 20.35  person is acting in the normal course of business include: 
 20.36     (1) systematic solicitation of sales through advertising 
 21.1   media; 
 21.2      (2) entering into contracts to perform services or provide 
 21.3   tangible personal property; 
 21.4      (3) maintaining a place of business; or 
 21.5      (4) use of exemption certificates to purchase goods exempt 
 21.6   from the sales tax. 
 21.7      Sec. 17.  Minnesota Statutes 1996, section 297A.25, 
 21.8   subdivision 59, is amended to read: 
 21.9      Subd. 59.  [FARM MACHINERY.] From July 1, 1994, until June 
 21.10  30, 1997, The gross receipts from the sale of used farm 
 21.11  machinery are exempt. 
 21.12     Sec. 18.  Minnesota Statutes 1996, section 297A.25, is 
 21.13  amended by adding a subdivision to read: 
 21.14     Subd. 62.  [MATERIALS USED IN PROVIDING TAXABLE 
 21.15  SERVICES.] (a) The gross receipts from the sale of and the 
 21.16  storage, use, or consumption of all materials used or consumed 
 21.17  in providing a taxable service intended to be sold ultimately at 
 21.18  retail are exempt. 
 21.19     (b) This exemption includes, but is not limited to: 
 21.20     (1) chemicals, fuels, petroleum products, lubricants, 
 21.21  packaging materials, seeds, trees, fertilizers, herbicides, 
 21.22  electricity, gas, and steam used or consumed in providing the 
 21.23  taxable service; 
 21.24     (2) chemicals, fuels, and electricity used to treat waste 
 21.25  generated as a result of providing the taxable service; and 
 21.26     (3) accessory tools, equipment, and other items that are 
 21.27  separate detachable units used in providing the service and that 
 21.28  have an ordinary useful life of less than 12 months. 
 21.29     (c) This exemption does not include: 
 21.30     (1) machinery, equipment, implements, tools, accessories, 
 21.31  appliances, contrivances, furniture, and fixtures used in 
 21.32  providing the taxable service; and 
 21.33     (2) fuel, electricity, gas, and steam used for space 
 21.34  heating or lighting. 
 21.35     (d) For purposes of this subdivision, "taxable services" 
 21.36  means the services listed in section 297A.01, subdivision 3, 
 22.1   except solid waste management services as described in section 
 22.2   297A.45. 
 22.3      Sec. 19.  [297A.213] [DIRECT PAYMENT BY PURCHASERS 
 22.4   PERMITTED.] 
 22.5      The commissioner may permit purchasers to pay taxes imposed 
 22.6   by this chapter directly to the commissioner.  Any taxes paid by 
 22.7   purchasers under this section are deemed use taxes, except local 
 22.8   sales taxes when no corresponding local use tax is imposed. 
 22.9      Sec. 20.  [297A.48] [LOCAL SALES TAX RULES.] 
 22.10     Subdivision 1.  [AUTHORIZATION; SCOPE.] (a) A political 
 22.11  subdivision of this state may impose a general sales tax if 
 22.12  permitted by special law or if the subdivision enacted and 
 22.13  imposed the tax before the effective date of section 477A.016 
 22.14  and its predecessor provision. 
 22.15     (b) This section governs the imposition of a general sales 
 22.16  tax by the political subdivision.  The provisions of this 
 22.17  section preempt the provisions of any special law: 
 22.18     (1) enacted before its effective date, or 
 22.19     (2) enacted after its effective date that does not 
 22.20  explicitly exempt the special law provision from this section's 
 22.21  rules by reference. 
 22.22     Subd. 2.  [TAX BASE.] (a) The tax applies to sales taxable 
 22.23  under this chapter that occur within the political subdivision. 
 22.24     (b) Taxable services are subject to a political 
 22.25  subdivision's sales tax, if they are performed either: 
 22.26     (1) within the political subdivision, or 
 22.27     (2) partly within and partly without the political 
 22.28  subdivision and more of the service is performed within the 
 22.29  political subdivision, based on the cost of performance. 
 22.30     Subd. 3.  [TAX RATE.] (a) The tax rate is as specified in 
 22.31  the special law authorization and as imposed by the political 
 22.32  subdivision. 
 22.33     (b) The full political subdivision rate applies to any 
 22.34  sales that are taxed at a state rate less than or more than the 
 22.35  state general sales and use tax rate. 
 22.36     Subd. 4.  [USE TAX.] A compensating use tax applies, at the 
 23.1   same rate as the sales tax, on the use, storage, distribution, 
 23.2   or consumption of tangible personal property or taxable services.
 23.3      Subd. 5.  [EXEMPTIONS.] (a) All goods or services that are 
 23.4   otherwise exempt from taxation under this chapter are exempt 
 23.5   from a political subdivision's tax. 
 23.6      (b) The gross receipts from the sale of tangible personal 
 23.7   property that meets the requirement of section 297A.25, 
 23.8   subdivision 5, are exempt, except the qualification test applies 
 23.9   based on the boundaries of the political subdivision instead of 
 23.10  the state of Minnesota. 
 23.11     (c) All mobile transportation equipment, and parts and 
 23.12  accessories attached to or to be attached to the equipment are 
 23.13  exempt, if purchased by a holder of a motor carrier direct pay 
 23.14  permit under section 297A.211.  
 23.15     Subd. 6.  [CREDIT FOR OTHER LOCAL TAXES.] If a person paid 
 23.16  sales or use tax to another political subdivision on tangible 
 23.17  personal property or another item subject to tax under this 
 23.18  section, a credit applies against the tax imposed under this 
 23.19  section.  The credit equals the tax the person paid to the other 
 23.20  political subdivision for the item.  
 23.21     Subd. 7.  [ENFORCEMENT; COLLECTION; AND ADMINISTRATION.] (a)
 23.22  The commissioner of revenue shall collect the taxes subject to 
 23.23  this section.  The commissioner may collect the tax with the 
 23.24  state sales and use tax.  All taxes under this section are 
 23.25  subject to the same penalties, interest, and enforcement 
 23.26  provisions as apply to the state sales and use tax. 
 23.27     (b) A request for a refund of state sales tax paid in 
 23.28  excess of the amount of tax legally due includes a request for a 
 23.29  refund of the political subdivision taxes paid on the goods or 
 23.30  services.  The commissioner must refund to the taxpayer the full 
 23.31  amount of the political subdivision taxes paid on exempt sales 
 23.32  or use. 
 23.33     (c) A political subdivision that is collecting and 
 23.34  administering its own sales and use tax before January 1, 1998, 
 23.35  may elect to be exempt from this subdivision and subdivision 8. 
 23.36     Subd. 8.  [REVENUES; COST OF COLLECTION.] The commissioner 
 24.1   shall remit the proceeds of the tax, less refunds and a 
 24.2   proportionate share of the cost of collection, at least 
 24.3   quarterly, to the political subdivision.  The commissioner shall 
 24.4   deduct from the proceeds remitted an amount that equals 
 24.5      (1) the direct and indirect costs of the department to 
 24.6   administer, audit, and collect the political subdivision's tax, 
 24.7   plus 
 24.8      (2) the political subdivision's proportionate share of the 
 24.9   indirect cost of administering all taxes under this section. 
 24.10     Subd. 9.  [EFFECTIVE DATES; NOTIFICATION.] (a) A political 
 24.11  subdivision may impose a tax under this section starting only on 
 24.12  the first day of a calendar quarter.  A political subdivision 
 24.13  may repeal a tax under this section stopping only on the last 
 24.14  day of a calendar quarter. 
 24.15     (b) The political subdivision must notify the commissioner 
 24.16  of revenue at least 90 days before imposing or repealing a tax 
 24.17  under this section. 
 24.18     Subd. 10.  [APPLICATION.] This section applies to all local 
 24.19  sales taxes authorized on or after the day of enactment of this 
 24.20  section.  Starting January 1, 2000, this section applies to all 
 24.21  local sales tax that were authorized before the day of enactment 
 24.22  of this section. 
 24.23     Sec. 21.  [REPEALER.] 
 24.24     (a) Minnesota Statutes 1996, section 289A.60, subdivision 
 24.25  15, is repealed. 
 24.26     (b) Minnesota Statutes 1996, sections 297A.01, subdivision 
 24.27  20; 297A.02, subdivision 5; 297A.15, subdivision 5; and 297A.25, 
 24.28  subdivision 29, are repealed. 
 24.29     Sec. 22.  [EFFECTIVE DATES.] 
 24.30     Sections 1 to 3, 13, 19, and 21, paragraph (a), are 
 24.31  effective for returns or payments due after June 30, 1997.  
 24.32  Section 4 is effective for refund claims filed for bad debts 
 24.33  recognized for federal purposes after June 30, 1997.  Section 5 
 24.34  is effective for refund claims filed after June 30, 1997.  
 24.35  Sections 6 and 14 are effective January 1, 1998.  Sections 8 to 
 24.36  10, 15 to 18, and 21, paragraph (b), effective for sales and 
 25.1   purchases occurring after June 30, 1997.  Section 7 is effective 
 25.2   July 1, 1997.  Sections 11 and 12 are effective for returns or 
 25.3   payments due after December 31, 1997.  Section 20 is effective 
 25.4   the day following final enactment.