HF 2630

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; eliminating sales tax on purchase of certain school district
vehicles; amending Minnesota Statutes 2006, section 297B.03.

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

Section 1.

Minnesota Statutes 2006, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment
sales contract made pursuant to section 465.71, of any motor vehicle by the United States
and its agencies and instrumentalities and by any person described in and subject to the
conditions provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of
another state or country at the time of the purchase and who subsequently becomes a
resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
such person began residing in the state of Minnesota and the motor vehicle was registered
in the person's name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of
Minnesota when such transfer constitutes a transfer within the meaning of section 118,
331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;

(5) purchase or use of any vehicle owned by a resident of another state and leased
to a Minnesota-based private or for-hire carrier for regular use in the transportation of
persons or property in interstate commerce provided the vehicle is titled in the state of
the owner or secured party, and that state does not impose a sales tax or sales tax on
motor vehicles used in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

new text begin (7) purchase of a motor vehicle by a public educational institution serving students
in any or all of kindergarten through grade 12 and intended to be used primarily to
transport students;
new text end

deleted text begin (7) deleted text end new text begin (8) new text end purchase of a motor vehicle for use as an ambulance by an ambulance service
licensed under section 144E.10;

deleted text begin (8) deleted text end new text begin (9) new text end purchase of a motor vehicle by or for a public library, as defined in section
134.001, subdivision 2, as a bookmobile or library delivery vehicle;

deleted text begin (9) deleted text end new text begin (10) new text end purchase of a ready-mixed concrete truck;

deleted text begin (10) deleted text end new text begin (11) new text end purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;

deleted text begin (11) deleted text end new text begin (12) new text end purchase or use of a motor vehicle by a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable, religious,
or educational purposes, except a public school, university, or library, but only if the
vehicle is:

(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a
passenger automobile, as defined in section 168.011, if the automobile is designed and
used for carrying more than nine persons including the driver; and

(ii) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose;

deleted text begin (12) deleted text end new text begin (13) new text end purchase of a motor vehicle for use by a transit provider exclusively to
provide transit service is exempt if the transit provider is either (i) receiving financial
assistance or reimbursement under section 174.24 or 473.384, or (ii) operating under
section 174.29, 473.388, or 473.405;

deleted text begin (13) deleted text end new text begin (14) new text end purchase or use of a motor vehicle by a qualified business, as defined
in section 469.310, located in a job opportunity building zone, if the motor vehicle is
principally garaged in the job opportunity building zone and is primarily used as part of or
in direct support of the person's operations carried on in the job opportunity building zone.
The exemption under this clause applies to sales, if the purchase was made and delivery
received during the duration of the job opportunity building zone. The exemption under
this clause also applies to any local sales and use tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made on or after June
30, 2008.
new text end