HF 2067

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; providing an exemption for 
  1.3             construction materials used in correctional 
  1.4             facilities; amending Minnesota Statutes 1996, sections 
  1.5             297A.15, subdivision 7; and 297A.25, subdivision 11, 
  1.6             and by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 297A.15, 
  1.9   subdivision 7, is amended to read: 
  1.10     Subd. 7.  [REFUND; APPROPRIATION; ADULT AND JUVENILE 
  1.11  CORRECTIONAL FACILITIES.] (a) If construction materials and 
  1.12  supplies described in paragraph (b) section 297A.25, subdivision 
  1.13  62, are purchased by a contractor, subcontractor, or builder as 
  1.14  part of a lump-sum contract or similar type of contract with a 
  1.15  price covering both labor and materials for use in the project, 
  1.16  a refund equal to 20 percent of the taxes paid by the 
  1.17  contractor, subcontractor, or builder must be paid to the 
  1.18  governmental subdivision.  The tax must be imposed and collected 
  1.19  as if the sales were taxable and the rate under section 297A.02, 
  1.20  subdivision 1, applied.  An application for refund must be 
  1.21  submitted by the governmental subdivision and must include 
  1.22  sufficient information to permit the commissioner to verify the 
  1.23  sales taxes paid for the project.  The contractor, 
  1.24  subcontractor, or builder must furnish to the governmental 
  1.25  subdivision a statement of the cost of the construction 
  1.26  materials and supplies and the sales taxes paid on them.  The 
  2.1   amount required to make the refunds is annually appropriated to 
  2.2   the commissioner.  Interest must be paid on the refund at the 
  2.3   rate in section 270.76 from 60 days after the date the refund 
  2.4   claim is filed with the commissioner. 
  2.5      (b) Construction materials and supplies qualify for the 
  2.6   refund under this section if:  (1) the materials and supplies 
  2.7   are for use in a project to construct or improve an adult or 
  2.8   juvenile correctional facility in a county, home rule charter 
  2.9   city, or statutory city, and (2) the project is mandated by 
  2.10  state or federal law, rule, or regulation.  The refund applies 
  2.11  regardless of whether the materials and supplies are purchased 
  2.12  by the city or county, or by a contractor, subcontractor, or 
  2.13  builder under a contract with the city or county. 
  2.14     Sec. 2.  Minnesota Statutes 1996, section 297A.25, 
  2.15  subdivision 11, is amended to read: 
  2.16     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
  2.17  all sales, including sales in which title is retained by a 
  2.18  seller or a vendor or is assigned to a third party under an 
  2.19  installment sale or lease purchase agreement under section 
  2.20  465.71, of tangible personal property to, and all storage, use 
  2.21  or consumption of such property by, the United States and its 
  2.22  agencies and instrumentalities, the University of Minnesota, 
  2.23  state universities, community colleges, technical colleges, 
  2.24  state academies, the Lola and Rudy Perpich Minnesota center for 
  2.25  arts education, and school districts are exempt. 
  2.26     As used in this subdivision, "school districts" means 
  2.27  public school entities and districts of every kind and nature 
  2.28  organized under the laws of the state of Minnesota, including, 
  2.29  without limitation, school districts, intermediate school 
  2.30  districts, education districts, service cooperatives, secondary 
  2.31  vocational cooperative centers, special education cooperatives, 
  2.32  joint purchasing cooperatives, telecommunication cooperatives, 
  2.33  regional management information centers, and any instrumentality 
  2.34  of a school district, as defined in section 471.59. 
  2.35     Sales exempted by this subdivision include sales under 
  2.36  section 297A.01, subdivision 3, paragraph (f), but do not 
  3.1   include sales under section 297A.01, subdivision 3, paragraph 
  3.2   (j), clause (vii).  
  3.3      Sales to hospitals and nursing homes owned and operated by 
  3.4   political subdivisions of the state are exempt under this 
  3.5   subdivision.  
  3.6      The sales to and exclusively for the use of libraries of 
  3.7   books, periodicals, audio-visual materials and equipment, 
  3.8   photocopiers for use by the public, and all cataloguing and 
  3.9   circulation equipment, and cataloguing and circulation software 
  3.10  for library use are exempt under this subdivision.  For purposes 
  3.11  of this paragraph "libraries" means libraries as defined in 
  3.12  section 134.001, county law libraries under chapter 134A, the 
  3.13  state library under section 480.09, and the legislative 
  3.14  reference library. 
  3.15     Sales of supplies and equipment used in the operation of an 
  3.16  ambulance service owned and operated by a political subdivision 
  3.17  of the state are exempt under this subdivision provided that the 
  3.18  supplies and equipment are used in the course of providing 
  3.19  medical care.  Sales to a political subdivision of repair and 
  3.20  replacement parts for emergency rescue vehicles and fire trucks 
  3.21  and apparatus are exempt under this subdivision.  
  3.22     Sales to a political subdivision of machinery and 
  3.23  equipment, except for motor vehicles, used directly for mixed 
  3.24  municipal solid waste management services at a solid waste 
  3.25  disposal facility as defined in section 115A.03, subdivision 10, 
  3.26  are exempt under this subdivision.  
  3.27     Sales to political subdivisions of chore and homemaking 
  3.28  services to be provided to elderly or disabled individuals are 
  3.29  exempt. 
  3.30     Sales of telephone services to the department of 
  3.31  administration that are used to provide telecommunications 
  3.32  services through the intertechnologies revolving fund are exempt 
  3.33  under this subdivision. 
  3.34     Except as provided in subdivision 62, this exemption shall 
  3.35  not apply to building, construction or reconstruction materials 
  3.36  purchased by a contractor or a subcontractor as a part of a 
  4.1   lump-sum contract or similar type of contract with a guaranteed 
  4.2   maximum price covering both labor and materials for use in the 
  4.3   construction, alteration, or repair of a building or facility.  
  4.4   This exemption does not apply to construction materials 
  4.5   purchased by tax exempt entities or their contractors to be used 
  4.6   in constructing buildings or facilities which will not be used 
  4.7   principally by the tax exempt entities. 
  4.8      This exemption does not apply to the leasing of a motor 
  4.9   vehicle as defined in section 297B.01, subdivision 5, except for 
  4.10  leases entered into by the United States or its agencies or 
  4.11  instrumentalities.  
  4.12     The tax imposed on sales to political subdivisions of the 
  4.13  state under this section applies to all political subdivisions 
  4.14  other than those explicitly exempted under this subdivision, 
  4.15  notwithstanding section 115A.69, subdivision 6, 116A.25, 
  4.16  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
  4.17  469.127, 473.448, 473.545, or 473.608 or any other law to the 
  4.18  contrary enacted before 1992. 
  4.19     Sales exempted by this subdivision include sales made to 
  4.20  other states or political subdivisions of other states, if the 
  4.21  sale would be exempt from taxation if it occurred in that state, 
  4.22  but do not include sales under section 297A.01, subdivision 3, 
  4.23  paragraphs (c) and (e). 
  4.24     Sec. 3.  Minnesota Statutes 1996, section 297A.25, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 62.  [CONSTRUCTION MATERIALS FOR CORRECTIONAL 
  4.27  FACILITIES.] The gross receipts from the sale of and storage, 
  4.28  use, or consumption of construction materials and supplies are 
  4.29  exempt from the tax imposed under this chapter if purchased for 
  4.30  use in a project to construct or improve an adult or juvenile 
  4.31  correctional facility in a county, home rule charter city, or 
  4.32  statutory city, and if the project is mandated by state or 
  4.33  federal law, rule, or regulation.  The exemption applies 
  4.34  regardless of whether the materials and supplies are purchased 
  4.35  by the city or county, or by a contractor, subcontractor, or 
  4.36  builder under a contract with the city or county. 
  5.1      Sec. 4.  [EFFECTIVE DATE.] 
  5.2      Sections 1 to 3 are effective for sales after June 30, 1997.