HF 2309

as introduced - 89th Legislature (2015 - 2016) Posted on 05/06/2015 08:37am

A bill for an act
relating to taxation; sales and use; providing a reduced rate for electricity, natural
or artificial gas, propane, and water sold to restaurants; amending Minnesota
Statutes 2014, section 297A.62, subdivision 1, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 297A.62, subdivision 1, is amended to read:

Subdivision 1.

Generally.

Except as otherwise provided in subdivision 3 new text begin or 3a, new text end or in
this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as
defined in section 297A.61, subdivision 4, made in this state or to a destination in this
state by a person who is required to have or voluntarily obtains a permit under section
297A.83, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.62, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Restaurant utilities. new text end

new text begin (a) For retail sales of electricity, natural or artificial
gas, propane, and water purchased and used by a restaurant located in this state, the sales
tax under subdivisions 1 and 1a is imposed on 65 percent of the sales price.
new text end

new text begin (b) For purposes of this subdivision, "restaurant" means a facility:
new text end

new text begin (1) that is operated for profit;
new text end

new text begin (2) where the usual and customary business is the serving of meals to consumers;
new text end

new text begin (3) that has a kitchen within the facility; and
new text end

new text begin (4) that receives at least 70 percent of its gross receipts from the sale of prepared food.
new text end

new text begin (c) For purposes of this subdivision, "prepared food" has the meaning given under
section 297A.61, subdivision 31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2015.
new text end