as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 02/16/2000 |
1.1 A bill for an act 1.2 relating to taxation; sales and use; reducing the 1.3 rate; exempting sales to political subdivisions of a 1.4 state; amending Minnesota Statutes 1998, sections 1.5 297A.02, subdivision 1; and 297A.47; Minnesota 1.6 Statutes 1999 Supplement, section 297A.25, subdivision 1.7 11. 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. Minnesota Statutes 1998, section 297A.02, 1.10 subdivision 1, is amended to read: 1.11 Subdivision 1. [GENERALLY.] Except as otherwise provided 1.12 in this chapter, there is imposed an excise tax of6.56 percent 1.13 of the gross receipts from sales at retail made by any person in 1.14 this state. 1.15 Sec. 2. Minnesota Statutes 1999 Supplement, section 1.16 297A.25, subdivision 11, is amended to read: 1.17 Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from 1.18 all sales, including sales in which title is retained by a 1.19 seller or a vendor or is assigned to a third party under an 1.20 installment sale or lease purchase agreement under section 1.21 465.71, of tangible personal property to, and all storage, use 1.22 or consumption of such property by,the following governmental 1.23 entities are exempt: 1.24 (1) the United States and its agencies and 1.25 instrumentalities,; 1.26 (2) the University of Minnesota, state universities, 2.1 community colleges, technical colleges, state academies, and the 2.2 Perpich center for arts education, an instrumentality of a2.3political subdivision that is accredited as an optional/special2.4function school by the North Central Association of Colleges and2.5Schools, school districts,; 2.6 (3) public libraries, public library systems, multicounty, 2.7 multitype library systems as defined in section 134.001,county2.8law libraries under chapter 134A,the state library under 2.9 section 480.09, and the legislative reference libraryare2.10exempt; and 2.11 (4) political subdivisions of a state and their agencies 2.12 and instrumentalities. 2.13As used in this subdivision, "school districts" means2.14public school entities and districts of every kind and nature2.15organized under the laws of the state of Minnesota, including,2.16without limitation, school districts, intermediate school2.17districts, education districts, service cooperatives, secondary2.18vocational cooperative centers, special education cooperatives,2.19joint purchasing cooperatives, telecommunication cooperatives,2.20regional management information centers, and any instrumentality2.21of a school district, as defined in section 471.59.2.22 Sales exempted by this subdivision include sales under 2.23 section 297A.01, subdivision 3, paragraph (f). 2.24Sales to hospitals and nursing homes owned and operated by2.25political subdivisions of the state are exempt under this2.26subdivision.2.27Sales of supplies and equipment used in the operation of an2.28ambulance service owned and operated by a political subdivision2.29of the state are exempt under this subdivision provided that the2.30supplies and equipment are used in the course of providing2.31medical care. Sales to a political subdivision of repair and2.32replacement parts for emergency rescue vehicles and fire trucks2.33and apparatus are exempt under this subdivision.2.34Sales to a political subdivision of machinery and2.35equipment, except for motor vehicles, used directly for mixed2.36municipal solid waste management services at a solid waste3.1disposal facility as defined in section 115A.03, subdivision 10,3.2are exempt under this subdivision.3.3Sales to political subdivisions of chore and homemaking3.4services to be provided to elderly or disabled individuals are3.5exempt.3.6Sales to a town of gravel and of machinery, equipment, and3.7accessories, except motor vehicles, used exclusively for road3.8and bridge maintenance, and leases of motor vehicles exempt from3.9tax under section 297B.03, clause (10), are exempt.3.10 Sales of telephone services to the department of 3.11 administration that are used to provide telecommunications 3.12 services through the intertechnologies revolving fund are exempt 3.13 under this subdivision. 3.14 This exemption shall not apply to building, construction or 3.15 reconstruction materials purchased by a contractor or a 3.16 subcontractor as a part of a lump-sum contract or similar type 3.17 of contract with a guaranteed maximum price covering both labor 3.18 and materials for use in the construction, alteration, or repair 3.19 of a building or facility. This exemption does not apply to 3.20 construction materials purchased by tax exempt entities or their 3.21 contractors to be used in constructing buildings or facilities 3.22 which will not be used principally by the tax exempt entities. 3.23 This exemption does not apply to the leasing of a motor 3.24 vehicle as defined in section 297B.01, subdivision 5, except for: 3.25 (1) leases entered into by the United States or its 3.26 agencies or instrumentalities; and 3.27 (2) leases entered into by a political subdivision of motor 3.28 vehicles exempt from tax under chapter 297B. 3.29The tax imposed on sales to political subdivisions of the3.30state under this section applies to all political subdivisions3.31other than those explicitly exempted under this subdivision,3.32notwithstanding section 115A.69, subdivision 6, 116A.25,3.33360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2,3.34469.127, 473.448, 473.545, or 473.608 or any other law to the3.35contrary enacted before 1992.3.36 Sales exempted by this subdivision include sales made to 4.1 other statesor political subdivisions of other states,if the 4.2 sale would be exempt from taxation if it occurred in that state, 4.3 but do not include sales under section 297A.01, subdivision 3, 4.4 paragraphs (c) and (e). 4.5 Sec. 3. Minnesota Statutes 1998, section 297A.47, is 4.6 amended to read: 4.7 297A.47 [REPORTING OF SALES TAX ON MINNESOTA GOVERNMENTS.] 4.8 The commissioner shall estimate the amount of revenues 4.9 derived from imposing the tax under this chapter and chapter 4.10 297B on state agencies and political subdivisions for each 4.11 fiscal year and shall report this amount to the commissioner of 4.12 finance before the time for filing reports for the fiscal year 4.13 with the United States Department of Commerce. The commissioner 4.14 of finance in reporting the sales tax and sales tax on motor 4.15 vehicles collections to the United States Department of Commerce 4.16 shall exclude this amount from the sales and motor vehicle 4.17 collections.Sales tax andSales tax on motor vehiclesrevenues4.18 revenue received from political subdivisions must be reported as 4.19 intergovernmental grants or similar intergovernmental revenue. 4.20 The amount of the sales tax and sales tax on motor vehicles paid 4.21 by state agencies must be reported as reduced state expenditures. 4.22 Sec. 4. [EFFECTIVE DATE.] 4.23 Sections 1 to 3 are effective for sales and purchases 4.24 occurring after June 30, 2000.