HF 2183

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 12:54pm

A bill for an act
relating to taxation; sales and use; exempting telecommunications and direct
television equipment; amending Minnesota Statutes 2012, section 297A.68, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 297A.68, is amended by adding a
subdivision to read:

new text begin Subd. 45. new text end

new text begin Telecommunications and pay television services machinery and
equipment. new text end

new text begin (a) Telecommunications or pay television services machinery and equipment
purchased or leased for use directly by a telecommunications or pay television service
provider primarily in the provision of telecommunications or pay television services
that are ultimately to be sold at retail are exempt, regardless of whether purchased by
the owner, a contractor, or a subcontractor.
new text end

new text begin (b) For purposes of this subdivision, "telecommunications or pay television services
machinery and equipment" includes, but is not limited to:
new text end

new text begin (1) machinery, equipment, and fixtures utilized in receiving, initiating,
amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunications or pay television services, such as computers, transformers, amplifiers,
routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
new text end

new text begin (2) machinery, equipment, and fixtures used in the transportation of
telecommunications or pay television services, radio transmitters and receivers, satellite
equipment, microwave equipment, and other transporting media, but not wire, cable,
fiber, poles, or conduit;
new text end

new text begin (3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or
enable the machinery in clauses (1) and (2) to accomplish its intended function, such as
auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
equipment necessary to the operation of the telecommunications or pay television services
equipment, and software necessary to the operation of the telecommunications or pay
television services equipment; and
new text end

new text begin (4) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on or
after the first day of the first calendar year quarter starting after the day following final
enactment.
new text end