1.1 	A bill for an act
1.2 	relating to taxes; sales and use; expanding the sales tax exemption for certain sales 
1.3 	made by a county agricultural society to include sales made prior to a county fair; 
1.4 	removing the requirement that a county agricultural society transfer tax savings 
1.5 	to the owner of the fairgrounds;amending Minnesota Statutes 2020, sections 38.27, 
1.6 	subdivision 4; 297A.70, subdivision 21.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2020, section 38.27, subdivision 4, is amended to read:
1.9 		Subd. 4.Use of a portion of county fair revenues. A county agricultural society must 
1.10 	annually determine the amount of sales tax savings attributable to section 297A.70, 
1.11 	subdivision 21. If the county agricultural society owns its own fairgrounds, it, and must use 
1.12 	the amount equal to the sales tax savings to maintain, improve, or expand society-owned 
1.13 	buildings and facilities on the fairgrounds; otherwise it must transfer this amount to the 
1.14 	owner of the fairgrounds. An owner that receives a transfer of money under this subdivision 
1.15 	must use the transferred amount to maintain, improve, and expand entity owned buildings 
1.16 	and facilities on the county fairgrounds.

1.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

1.18 	Sec. 2. Minnesota Statutes 2020, section 297A.70, subdivision 21, is amended to read:
1.19 		Subd. 21.County agricultural society sales at county fairs. Sales by a county 
1.20 	agricultural society during and prior to a regularly scheduled county fair are exempt. For 
1.21 	purposes of this subdivision, sales include admissions to and parking at the county 
1.22 	fairgrounds, admissions to separately ticketed events run by the county agricultural society, 
1.23 	and concessions and other sales made by employees or volunteers of the county agricultural 
2.1 	society on the county fairgrounds. This exemption does not apply to sales or for events by 
2.2 	a county agricultural society held at a time other than at the time of the regularly scheduled 
2.3 	county fair, or events not held on the county fairgrounds.

2.4 	EFFECTIVE DATE. This section is effective the day following final enactment.