HF 3780

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; sales and use tax; expanding the 
  1.3             purposes for which nonprofit groups may make tax 
  1.4             exempt purchases; amending Minnesota Statutes 1998, 
  1.5             section 297A.25, subdivision 16. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 297A.25, 
  1.8   subdivision 16, is amended to read: 
  1.9      Subd. 16.  [SALES TO NONPROFIT GROUPS.] (a) The gross 
  1.10  receipts from the sale of tangible personal property to, and the 
  1.11  storage, use or other consumption of such property by, any 
  1.12  corporation, society, association, foundation, or institution 
  1.13  organized and operated exclusively for charitable, religious, or 
  1.14  educational purposes if the property purchased is to be used in 
  1.15  the performance of charitable, religious, or educational 
  1.16  functions, or any senior citizen group or association of groups 
  1.17  that in general limits membership to persons who are either (1) 
  1.18  age 55 or older, or (2) physically disabled, and is organized 
  1.19  and operated exclusively for pleasure, recreation, and other 
  1.20  nonprofit purposes, no part of the net earnings of which inures 
  1.21  to the benefit of any private shareholders, are exempt.  For 
  1.22  purposes of this subdivision, charitable purpose includes the 
  1.23  maintenance of a cemetery owned by a religious organization.  
  1.24  For purposes of this subdivision, charitable purpose includes 
  1.25  modification of an existing residential structure to make it 
  2.1   handicapped accessible if the modification would qualify for an 
  2.2   exemption under either subdivision 20 or 43 if made by the 
  2.3   current owner of the residence.  Sales exempted by this 
  2.4   subdivision include sales pursuant to section 297A.01, 
  2.5   subdivision 3, paragraphs (d) and (f).  This exemption shall not 
  2.6   apply to building, construction, or reconstruction materials 
  2.7   purchased by a contractor or a subcontractor as a part of a 
  2.8   lump-sum contract or similar type of contract with a guaranteed 
  2.9   maximum price covering both labor and materials for use in the 
  2.10  construction, alteration, or repair of a building or facility. 
  2.11     (b) This exemption does not apply to construction materials 
  2.12  purchased by tax exempt entities or their contractors to be used 
  2.13  in constructing buildings or facilities which will not be used 
  2.14  principally by the tax exempt entities, except as provided in 
  2.15  paragraph (a).  This exemption does not apply to the leasing of 
  2.16  a motor vehicle as defined in section 297B.01, subdivision 5. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective for sales and purchases made after 
  2.19  June 30, 2000.