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HF 2242

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/15/2021 03:11pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/15/2021

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; providing refundable exemptions for certain
items purchased for properties damaged during unrest; appropriating money.

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

Section 1. new text begin PROPERTIES DESTROYED OR DAMAGED DURING PROTESTS
AND UNREST IN MAY AND JUNE OF 2020.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin (a) The sale and purchase of the following items are exempt
if the items are used to repair, replace, clean, or otherwise recover from real and personal
property damage and destruction after May 24, 2020, and before June 16, 2020, resulting
from protests and unrest in the cities included in the peacetime emergency declared in the
governor's Executive Order No. 20-64:
new text end

new text begin (1) building materials and supplies used or consumed in, and equipment incorporated
into, the construction, replacement, or repair of real property;
new text end

new text begin (2) capital equipment, including retail fixtures, office equipment, and restaurant
equipment, with a cost of $5,000 or more and a useful life of more than one year; and
new text end

new text begin (3) building cleaning and disinfecting services related to mitigating smoke damage and
graffiti on and in impacted buildings.
new text end

new text begin (b) The exemption in this subdivision only applies to materials, supplies, and services
purchased to repair, replace, or clean buildings owned by a government entity or by a private
owner provided the building housed one or more of the following entities at the time of the
damage or destruction:
new text end

new text begin (1) a commercial establishment with an annual gross income of $30,000,000 or less in
calendar year 2019;
new text end

new text begin (2) a nonprofit organization; or
new text end

new text begin (3) a low-income housing development that meets the certification requirements under
Minnesota Statutes, section 273.128, whether or not the development was occupied at the
time of its damage or destruction.
new text end

new text begin (c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the manner provided in Minnesota
Statutes, section 297A.75, except that the applicant must have been an owner or occupant
of the real property at the time of its destruction. The exemption under paragraph (a) applies
to sales and purchases made after May 25, 2020, and before December 1, 2022.
new text end

new text begin (d) Both the owner and occupants of the real property at the time of the damage or
destruction may apply for a refund under this subdivision but may only request a refund for
the goods and services they paid for, or were contracted and paid for on their behalf. The
exemption does not apply to purchases of an owner if the owner did not own the real property
at the time of the damage or destruction.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after May 25, 2020.
new text end