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Minnesota Legislature

Office of the Revisor of Statutes

HF 2899

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 01/29/1998

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; sales tax and sales tax on motor 
  1.3             vehicles; providing that machinery, equipment, and 
  1.4             certain vehicles purchased or used by a political 
  1.5             subdivision for road construction or maintenance are 
  1.6             exempt; amending Minnesota Statutes 1997 Supplement, 
  1.7             sections 297A.25, subdivision 11; and 297B.03. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.10  297A.25, subdivision 11, is amended to read: 
  1.11     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
  1.12  all sales, including sales in which title is retained by a 
  1.13  seller or a vendor or is assigned to a third party under an 
  1.14  installment sale or lease purchase agreement under section 
  1.15  465.71, of tangible personal property to, and all storage, use 
  1.16  or consumption of such property by, the United States and its 
  1.17  agencies and instrumentalities, the University of Minnesota, 
  1.18  state universities, community colleges, technical colleges, 
  1.19  state academies, the Lola and Rudy Perpich Minnesota center for 
  1.20  arts education, and school districts are exempt. 
  1.21     As used in this subdivision, "school districts" means 
  1.22  public school entities and districts of every kind and nature 
  1.23  organized under the laws of the state of Minnesota, including, 
  1.24  without limitation, school districts, intermediate school 
  1.25  districts, education districts, service cooperatives, secondary 
  1.26  vocational cooperative centers, special education cooperatives, 
  2.1   joint purchasing cooperatives, telecommunication cooperatives, 
  2.2   regional management information centers, and any instrumentality 
  2.3   of a school district, as defined in section 471.59. 
  2.4      Sales exempted by this subdivision include sales under 
  2.5   section 297A.01, subdivision 3, paragraph (f).  
  2.6      Sales to hospitals and nursing homes owned and operated by 
  2.7   political subdivisions of the state are exempt under this 
  2.8   subdivision.  
  2.9      The sales to and exclusively for the use of libraries of 
  2.10  books, periodicals, audio-visual materials and equipment, 
  2.11  photocopiers for use by the public, and all cataloguing and 
  2.12  circulation equipment, and cataloguing and circulation software 
  2.13  for library use are exempt under this subdivision.  For purposes 
  2.14  of this paragraph "libraries" means libraries as defined in 
  2.15  section 134.001, county law libraries under chapter 134A, the 
  2.16  state library under section 480.09, and the legislative 
  2.17  reference library. 
  2.18     Sales of supplies and equipment used in the operation of an 
  2.19  ambulance service owned and operated by a political subdivision 
  2.20  of the state are exempt under this subdivision provided that the 
  2.21  supplies and equipment are used in the course of providing 
  2.22  medical care.  Sales to a political subdivision of repair and 
  2.23  replacement parts for emergency rescue vehicles and fire trucks 
  2.24  and apparatus are exempt under this subdivision.  
  2.25     Sales to a political subdivision of machinery and 
  2.26  equipment, except for motor vehicles, used directly for mixed 
  2.27  municipal solid waste management services at a solid waste 
  2.28  disposal facility as defined in section 115A.03, subdivision 10, 
  2.29  are exempt under this subdivision.  
  2.30     Sales to political subdivisions of chore and homemaking 
  2.31  services to be provided to elderly or disabled individuals are 
  2.32  exempt. 
  2.33     Sales to or use by a political subdivision of machinery, 
  2.34  equipment, and accessories, except motor vehicles, exclusively 
  2.35  for road, street, or highway construction or maintenance, are 
  2.36  exempt under this subdivision. 
  3.1      Sales of telephone services to the department of 
  3.2   administration that are used to provide telecommunications 
  3.3   services through the intertechnologies revolving fund are exempt 
  3.4   under this subdivision. 
  3.5      This exemption shall not apply to building, construction or 
  3.6   reconstruction materials purchased by a contractor or a 
  3.7   subcontractor as a part of a lump-sum contract or similar type 
  3.8   of contract with a guaranteed maximum price covering both labor 
  3.9   and materials for use in the construction, alteration, or repair 
  3.10  of a building or facility.  This exemption does not apply to 
  3.11  construction materials purchased by tax exempt entities or their 
  3.12  contractors to be used in constructing buildings or facilities 
  3.13  which will not be used principally by the tax exempt entities. 
  3.14     This exemption does not apply to the leasing of a motor 
  3.15  vehicle as defined in section 297B.01, subdivision 5, except for 
  3.16  leases entered into by the United States or its agencies or 
  3.17  instrumentalities.  
  3.18     The tax imposed on sales to political subdivisions of the 
  3.19  state under this section applies to all political subdivisions 
  3.20  other than those explicitly exempted under this subdivision, 
  3.21  notwithstanding section 115A.69, subdivision 6, 116A.25, 
  3.22  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
  3.23  469.127, 473.448, 473.545, or 473.608 or any other law to the 
  3.24  contrary enacted before 1992. 
  3.25     Sales exempted by this subdivision include sales made to 
  3.26  other states or political subdivisions of other states, if the 
  3.27  sale would be exempt from taxation if it occurred in that state, 
  3.28  but do not include sales under section 297A.01, subdivision 3, 
  3.29  paragraphs (c) and (e). 
  3.30     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  3.31  297B.03, is amended to read: 
  3.32     297B.03 [EXEMPTIONS.] 
  3.33     There is specifically exempted from the provisions of this 
  3.34  chapter and from computation of the amount of tax imposed by it 
  3.35  the following:  
  3.36     (1) Purchase or use, including use under a lease purchase 
  4.1   agreement or installment sales contract made pursuant to section 
  4.2   465.71, of any motor vehicle by the United States and its 
  4.3   agencies and instrumentalities and by any person described in 
  4.4   and subject to the conditions provided in section 297A.25, 
  4.5   subdivision 18.  
  4.6      (2) Purchase or use of any motor vehicle by any person who 
  4.7   was a resident of another state at the time of the purchase and 
  4.8   who subsequently becomes a resident of Minnesota, provided the 
  4.9   purchase occurred more than 60 days prior to the date such 
  4.10  person began residing in the state of Minnesota.  
  4.11     (3) Purchase or use of any motor vehicle by any person 
  4.12  making a valid election to be taxed under the provisions of 
  4.13  section 297A.211.  
  4.14     (4) Purchase or use of any motor vehicle previously 
  4.15  registered in the state of Minnesota when such transfer 
  4.16  constitutes a transfer within the meaning of section 351 or 721 
  4.17  of the Internal Revenue Code of 1986, as amended through 
  4.18  December 31, 1988.  
  4.19     (5) Purchase or use of any vehicle owned by a resident of 
  4.20  another state and leased to a Minnesota based private or for 
  4.21  hire carrier for regular use in the transportation of persons or 
  4.22  property in interstate commerce provided the vehicle is titled 
  4.23  in the state of the owner or secured party, and that state does 
  4.24  not impose a sales tax or sales tax on motor vehicles used in 
  4.25  interstate commerce.  
  4.26     (6) Purchase or use of a motor vehicle by a private 
  4.27  nonprofit or public educational institution for use as an 
  4.28  instructional aid in automotive training programs operated by 
  4.29  the institution.  "Automotive training programs" includes motor 
  4.30  vehicle body and mechanical repair courses but does not include 
  4.31  driver education programs.  
  4.32     (7) Purchase of a motor vehicle for use as an ambulance by 
  4.33  an ambulance service licensed under section 144E.10. 
  4.34     (8) Purchase of a motor vehicle by or for a public library, 
  4.35  as defined in section 134.001, subdivision 2, as a bookmobile or 
  4.36  library delivery vehicle. 
  5.1      (9) Purchase or use of a motor vehicle by a political 
  5.2   subdivision exclusively for road, street, or highway 
  5.3   construction or maintenance, including snowplows and dump 
  5.4   trucks, but not including automobiles, vans, or pickup trucks. 
  5.5      Sec. 3.  [EFFECTIVE DATE.] 
  5.6      Sections 1 and 2 are effective for sales and purchases 
  5.7   occurring after June 30, 1998.