HF 2178

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; defining the term tax for
purposes of Minnesota Statutes; amending Minnesota
Statutes 2004, section 645.44, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 645.44, is
amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Fee and tax. new text end

new text begin (a) "Tax" means any fee, charge,
exaction, or assessment imposed by a governmental entity on an
individual, person, entity, transaction, good, service, or other
thing. It excludes a price that an individual or entity chooses
voluntarily to pay in return for receipt of goods or services
provided by the governmental entity. A government good or
service does not include access to or the authority to engage in
private market transactions with a nongovernmental party, such
as licenses to engage in a trade, profession, or business or to
improve private property.
new text end

new text begin (b) For purposes of applying the laws of this state, a
"fee," "charge," or other similar term that satisfies the
functional requirements of paragraph (a) must be treated as a
tax for all purposes, regardless of whether the statute or law
names or describes it as a tax. The provisions of this
subdivision do not preempt or supersede limitations under law
that apply to fees, charges, or assessments.
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