HF 406

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; amending sales tax exemption for
certain nonprofit tickets or admissions; amending
Minnesota Statutes 2004, section 297A.70, subdivision
10.

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

Section 1.

Minnesota Statutes 2004, section 297A.70,
subdivision 10, is amended to read:

Subd. 10.

Nonprofit tickets or admissions.

(a) Tickets
or admissions to an event are exempt if all the gross receipts
are recorded as such, in accordance with generally accepted
accounting principles, on the books of one or more organizations
whose primary mission is to provide an opportunity for citizens
of the state to participate in the creation, performance, or
appreciation of the arts, and provided that each organization is:

(1) an organization described in section 501(c)(3) of the
Internal Revenue Code in which voluntary contributions make up
at least the following percent of the organization's annual
revenue in its most recently completed 12-month fiscal year, or
in the current year if the organization has not completed a
12-month fiscal year:

(i) for sales made after July 31, 2001, and before July 1,
2002, for the organization's fiscal year completed in calendar
year 2000, three percent;

(ii) for sales made on or after July 1, 2002, and on or
before June 30, 2003, for the organization's fiscal year
completed in calendar year 2001, three percent;

(iii) for sales made on or after July 1, 2003, and on or
before June 30, 2004, for the organization's fiscal year
completed in calendar year 2002, four percent; and

(iv) for sales made in each 12-month period, beginning on
July 1, 2004, and each subsequent year, for the organization's
fiscal year completed in the preceding calendar year, five
percent;

(2) a municipal board that promotes cultural and arts
activities; or

(3) the University of Minnesota, new text begin a state college and
university, or a private nonprofit college or university
new text end provided that the event is held at a deleted text begin university-owned deleted text end facility
new text begin owned by the educational institution holding the event new text end .

The exemption only applies if the entire proceeds, after
reasonable expenses, are used solely to provide opportunities
for citizens of the state to participate in the creation,
performance, or appreciation of the arts.

(b) Tickets or admissions to the premises of the Minnesota
Zoological Garden are exempt, provided that the exemption under
this paragraph does not apply to tickets or admissions to
performances or events held on the premises unless the
performance or event is sponsored and conducted exclusively by
the Minnesota Zoological Board or employees of the Minnesota
Zoological Garden.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tickets and
admissions sold on or after July 1, 2005.
new text end