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HF 2321

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to taxation; sales and use; exempting the 
  1.3             purchase of construction materials and supplies used 
  1.4             in a street reconstruction project in the city of 
  1.5             Milaca; amending Minnesota Statutes 2000, sections 
  1.6             297A.71, by adding a subdivision; 297A.75. 
  1.8      Section 1.  Minnesota Statutes 2000, section 297A.71, is 
  1.9   amended by adding a subdivision to read: 
  1.11  Materials and supplies used or consumed in the reconstruction of 
  1.12  the street system, including replacement of water mains, repair 
  1.13  of storm sewers, and addition of curbs and gutters, in the city 
  1.14  of Milaca are exempt.  The tax must be imposed and collected as 
  1.15  if the rate in section 297A.62, subdivision 1, applied, and then 
  1.16  refunded as provided in section 297A.75.  
  1.17     [EFFECTIVE DATE.] This section is effective for sales and 
  1.18  purchases made on or after May 1, 2001. 
  1.19     Sec. 2.  Minnesota Statutes 2000, section 297A.75, is 
  1.20  amended to read: 
  1.21     297A.75 [REFUND; APPROPRIATION.] 
  1.22     Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
  1.23  receipts from the sale of the following exempt items must be 
  1.24  imposed and collected as if the sale were taxable and the rate 
  1.25  under section 297A.62, subdivision 1, applied.  The exempt items 
  1.26  include: 
  2.1      (1) capital equipment exempt under section 297A.68, 
  2.2   subdivision 5; 
  2.3      (2) building materials for an agricultural processing 
  2.4   facility exempt under section 297A.71, subdivision 13; 
  2.5      (3) building materials for mineral production facilities 
  2.6   exempt under section 297A.71, subdivision 14; 
  2.7      (4) building materials for correctional facilities under 
  2.8   section 297A.71, subdivision 3; 
  2.9      (5) building materials used in a residence for disabled 
  2.10  veterans exempt under section 297A.71, subdivision 11; and 
  2.11     (6) chair lifts, ramps, elevators, and associated building 
  2.12  materials exempt under section 297A.71, subdivision 12; and 
  2.13     (7) building materials and supplies for a street 
  2.14  reconstruction project exempt under section 297A.71, subdivision 
  2.15  23. 
  2.16     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
  2.17  forms prescribed by the commissioner, a refund equal to the tax 
  2.18  paid on the gross receipts of the exempt items must be paid to 
  2.19  the applicant.  Only the following persons may apply for the 
  2.20  refund: 
  2.21     (1) for subdivision 1, clauses (1) to (3), the applicant 
  2.22  must be the purchaser; 
  2.23     (2) for subdivision 1, clause clauses (4) and 7, the 
  2.24  applicant must be the governmental subdivision; 
  2.25     (3) for subdivision 1, clause (5), the applicant must be 
  2.26  the recipient of the benefits provided in United States Code, 
  2.27  title 38, chapter 21; and 
  2.28     (4) for subdivision 1, clause (6), the applicant must be 
  2.29  the owner of the homestead property. 
  2.30     Subd. 3.  [APPLICATION.] (a) The application must include 
  2.31  sufficient information to permit the commissioner to verify the 
  2.32  tax paid.  If the tax was paid by a contractor, subcontractor, 
  2.33  or builder, under subdivision 1, clause (4), (5), or (6), or 
  2.34  (7), the contractor, subcontractor, or builder must furnish to 
  2.35  the refund applicant a statement including the cost of the 
  2.36  exempt items and the taxes paid on the items unless otherwise 
  3.1   specifically provided by this subdivision.  The provisions of 
  3.2   sections 289A.40 and 289A.50 apply to refunds under this section.
  3.3      (b) An applicant may not file more than two applications 
  3.4   per calendar year for refunds for taxes paid on capital 
  3.5   equipment exempt under section 297A.68, subdivision 5.  
  3.6      Subd. 4.  [INTEREST.] Interest must be paid on the refund 
  3.7   at the rate in section 270.76 from the date the refund claim is 
  3.8   filed for taxes paid under subdivision 1, clauses (1) to (3), 
  3.9   and (5), and from 60 days after the date the refund claim is 
  3.10  filed with the commissioner for claims filed under subdivision 
  3.11  1, clauses (4) and, (6), and (7). 
  3.12     Subd. 5.  [APPROPRIATION.] The amount required to make the 
  3.13  refunds is annually appropriated to the commissioner. 
  3.14     [EFFECTIVE DATE.] This section is effective for sales and 
  3.15  purchases made on or after May 1, 2001.