HF 3910

as introduced - 89th Legislature (2015 - 2016) Posted on 04/14/2016 12:46pm

A bill for an act
relating to taxation; sales and use; providing an exemption for construction
materials and supplies purchased by certain nonprofit economic development
corporations; amending Minnesota Statutes 2014, sections 297A.71, by adding a
subdivision; 297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2014, section 297A.71, is amended by adding a
subdivision to read:

new text begin Subd. 49. new text end

new text begin CONSTRUCTION MATERIALS USED BY A NONPROFIT
ECONOMIC DEVELOPMENT CORPORATION. new text end

new text begin Materials and supplies used or
consumed in and equipment incorporated into the construction of a retail development
consisting of retail space for a grocery store, fueling center, or other retail space by a
nonprofit economic development corporation that is a 501(c)(3) organization are exempt,
provided that the development is located in a city with no grocery store and the city is at
least 20 miles from another city with a grocery store. The exemption applies to materials,
supplies, and equipment purchased after January 1, 2013, and before January 1, 2017. The
tax must be imposed and collected as if the rate in Minnesota Statutes, section 297A.62
applied and the nonprofit economic development corporation must apply for the refund of
the tax in the same manner as provided under Minnesota Statutes, section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies retroactively to sales and purchases made after January 1, 2013, and before
January 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
subdivision 45;

(iii) a research and development facility exempt under section 297A.71, subdivision
46; deleted text begin and
deleted text end

(iv) an industrial measurement manufacturing and controls facility exempt under
section 297A.71, subdivision 47; new text begin and
new text end

new text begin (v) a retail development exempt under section 297A.71, subdivision 49;
new text end

(12) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44;

(14) items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c); and

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:

Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business new text begin or development new text end ; and

(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
governmental entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end