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HF 2143

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/29/2021 07:08pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; establishing save our stages grants; providing
tax relief for entertainment venues; appropriating money.

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

Section 1. new text beginSAVE OUR STAGES GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Entertainment events defined. new text end

new text begin For the purposes of this section,
"entertainment events" means any onstage production that is held in a venue that has a
defined performance and audience space, or is temporarily built to accommodate
performances, and also includes activities such as booking and paying performers, marketing
specific acts through gig listings or advertising, collection of tickets or door cover charges,
and hiring of crew.
new text end

new text begin Subd. 2. new text end

new text begin Eligible businesses. new text end

new text begin (a) A Minnesota-registered business in good standing or
Minnesota-registered nonprofit in good standing that is directly engaged in the procurement,
promotion, production or presentation of live entertainment events to an in-person audience
is eligible to receive a grant under this section if the business:
new text end

new text begin (1) met the following revenue requirements:
new text end

new text begin (i) derived at least 33 percent of the business's 2019 revenue from the sale of tickets for
live events; or
new text end

new text begin (ii) is directly reliant on ticketed live entertainment events but is not directly in receipt
of those ticket revenues because the event is free to the general public and the revenue is
derived from avenues other than ticket sales;
new text end

new text begin (2) employed no more than 60 full-time equivalent employees, defined as an employee
who worked on average 30 hours of service per week or 130 hours of service per month;
new text end

new text begin (3) was restricted from operating above 25 percent capacity or 250 attendees, whichever
is less, pursuant to an executive order issued during a peacetime emergency declared
regarding the infectious disease known as COVID-19;
new text end

new text begin (4) does not have any current tax delinquency with the Department of Revenue at the
time of application; and
new text end

new text begin (5) has its principal place of business in Minnesota.
new text end

new text begin (b) The following entities are ineligible for grants under this section:
new text end

new text begin (1) bars, restaurants, and other facilities whose primary source of revenue is not
entertainment events;
new text end

new text begin (2) multinational or publicly owned companies; and
new text end

new text begin (3) adult entertainment operations.
new text end

new text begin Subd. 3. new text end

new text begin Grant amounts; application procedure. new text end new text begin new text end

new text begin (a) The commissioner of employment
and economic development may award grants to eligible businesses of up to $500,000, or
25 percent of the businesses' gross revenue for 2019, whichever is less. The commissioner
may develop criteria, forms, applications, and reporting requirements for use by applicants.
new text end

new text begin (b) Businesses may not receive more than one grant under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Eligible use of grant money. new text end

new text begin Grant proceeds may be used for business
operations, payroll, rent or mortgage, utilities, and other business-related expenses including
those necessary to comply with social distancing requirements such as HVAC systems,
plexiglass barriers, and other health and safety equipment required to operate safely.
new text end

new text begin Subd. 5. new text end

new text begin License fee refund. new text end

new text begin In addition to a grant under subdivision 3, a
Minnesota-registered business in good standing or Minnesota-registered nonprofit in good
standing that is directly engaged in the procurement, promotion, production, or presentation
of live entertainment events to an in-person audience may apply to the commissioner of
employment and economic development for reimbursement of any on-sale intoxicating
liquor license fee paid to a city, county, or state agency in 2020 under Minnesota Statutes,
chapter 340A. The commissioner of employment and economic development shall refund
the license fees paid to any eligible business upon a showing that the license fees were paid
in 2020 and the business was restricted from operating above 25 percent capacity or 250
attendees, whichever is less, pursuant to an executive order issued during a peacetime
emergency declared regarding the infectious disease known as COVID-19.
new text end

new text begin Subd. 6. new text end

new text begin Discretionary grants allowed. new text end

new text begin Notwithstanding the requirements of this section,
the commissioner may authorize a grant to a business under subdivision 3 if the commissioner
determines that the business has substantially met the requirements of this section, but was
a new entertainment venue that had planned on opening in 2020 but was unable to begin
operations based solely on the fact that COVID-19-related closures prevented the business
from doing so. The business shall submit, on a form required by the commissioner, any
documentation the commissioner deems necessary to determine whether the business applies
for a discretionary grant under this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin $....... in fiscal year 2021 is appropriated from the general fund
to the commissioner of employment and economic development for the save our stages
grants under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text beginLIVE ENTERTAINMENT VENUE PROPERTY TAX RELIEF.
new text end

new text begin Subdivision 1. new text end

new text begin Property tax credit. new text end

new text begin (a) The owner of a business defined under section
1, subdivision 2, is eligible to receive a property tax credit under this section. The credit is
equal to .... percent of the total amount of property taxes paid on the property of the eligible
business in the prior year.
new text end

new text begin (b) If the amount of the credit the owner is entitled to receive under this section exceeds
the owner's property tax liability under Minnesota Statutes, chapter 275, the commissioner
of revenue shall refund the excess amount to the owner.
new text end

new text begin (c) An amount necessary to pay the claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin To qualify for the property tax credit in subdivision 1, the owner
of an eligible business must file an application with the commissioner of revenue. The owner
must certify the amount of the credit to the commissioner. The commissioner must prescribe
the form and manner to certify and apply for the credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2022.
new text end

Sec. 3. new text beginDEFINITIONS; REQUIREMENTS FOR TAX RELIEF.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and sections 4 and 5, the
following terms have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Eligible business" has the meaning given under section 1, subdivision 2.
new text end

new text begin (d) "Eligible grant" means any contribution by any governmental entity or civic group
that is includible in gross income.
new text end

new text begin (e) "Entertainment events" has the meaning given under section 1, subdivision 1.
new text end

new text begin (f) "Subtraction" has the meaning given in Minnesota Statutes, section 290.0132.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for eligible businesses to claim relief. new text end

new text begin To claim relief under
sections 4 and 5, an eligible business must:
new text end

new text begin (1) meet at least one of the following revenue requirements:
new text end

new text begin (i) the business must have derived at least 33 percent of its 2019 revenue from the sale
of tickets for live events; or
new text end

new text begin (ii) the business must be directly reliant on ticketed live entertainment events but is not
directly in receipt of those ticket revenues because the event is free to the general public
and the revenue is derived from avenues other than ticket sales;
new text end

new text begin (2) have employed no more than 60 full-time equivalent employees, defined as an
employee who worked on average 30 hours of service per week or 130 hours of service per
month;
new text end

new text begin (3) have been restricted from operating above 25 percent capacity or 250 attendees,
whichever is less, pursuant to an executive order issued during a peacetime emergency
declared regarding the infectious disease known as COVID-19;
new text end

new text begin (4) not have any current tax delinquency with the Department of Revenue at the time
of application for tax relief or refund under sections 4 and 5; and
new text end

new text begin (5) have its principal place of business in Minnesota.
new text end

Sec. 4. new text beginTEMPORARY INCOME TAX SUBTRACTION FOR GRANTS INCLUDED
IN GROSS INCOME.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible grants excluded from income. new text end

new text begin For taxable years beginning
after December 31, 2019, and before January 1, 2022, an eligible business is allowed a
subtraction equal to the amount of eligible grants received during the taxable year to the
extent the grants were included in gross income.
new text end

new text begin Subd. 2. new text end

new text begin Administration; refund; appropriation. new text end

new text begin The commissioner shall prescribe
the form and manner in which a taxpayer may file a return, or an amended return if necessary,
and claim a refund of additional taxes paid based on the inclusion of eligible grants, exempted
under subdivision 1, in the taxpayer's gross income.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2022.
new text end

Sec. 5. new text beginSALES TAX EXEMPTION FOR ENTERTAINMENT EVENTS; REFUNDS
FOR TAXES PAID.
new text end

new text begin Subdivision 1. new text end

new text begin Sales tax exemption. new text end

new text begin For sales and purchases made after December 31,
2019, and before January 1, 2021, the sale of the privilege of admission under Minnesota
Statutes, section 297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement
does not include consideration paid for tickets or admissions to entertainment events, if the
consideration is paid directly to an eligible business, and the sale and purchase of tickets or
admissions is exempt.
new text end

new text begin Subd. 2. new text end

new text begin Sales tax refunds. new text end

new text begin For sales and purchases made after December 31, 2019, and
before July 1, 2021, the commissioner shall prescribe the form and manner in which a
taxpayer may claim a refund for sales taxes collected and remitted on sales and purchases
that were exempt under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020.
new text end

Sec. 6. new text beginAPPROPRIATION FOR REFUNDS.
new text end

new text begin The amount necessary to pay the refunds allowed in sections 4 and 5 is appropriated to
the commissioner of revenue from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end