HF 532

as introduced - 89th Legislature (2015 - 2016) Posted on 02/16/2015 04:01pm

A bill for an act
relating to taxation; sales and use; clarifying exemption on nonprofit tickets or
admissions; amending Minnesota Statutes 2014, section 297A.70, subdivision 10.

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

Section 1.

Minnesota Statutes 2014, 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 five 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;

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

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

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 (c) Tickets or admissions to a performance or event on the premises of a tax-exempt
organization under section 501(c)(3) of the Internal Revenue Code are exempt if:
new text end

new text begin (1) the nonprofit organization was established to preserve Minnesota's rural
agricultural heritage and focuses on educating the public about rural history and how
farms in Minnesota helped to provide food for the nation and the world;
new text end

new text begin (2) the premises of the nonprofit organization is at least 115 acres;
new text end

new text begin (3) the performance or event is sponsored and conducted exclusively by volunteers,
employees of the nonprofit organization, or members of the board of directors of the
nonprofit organization; and
new text end

new text begin (4) the performance or event is consistent with the nonprofit organization's purposes
under section 501(c)(3) of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2007.
new text end