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HF 661

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 01:37pm

KEY: stricken = removed, old language. underscored = added, new language.


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Introduction Pdf Posted on 02/18/2013

Current Version - as introduced

1.1A bill for an act
1.2relating to taxation; sales; extending the tax to certain cosmetic procedures;
1.3amending Minnesota Statutes 2012, section 297A.61, subdivision 3.

1.5    Section 1. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
1.6    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
1.7to, each of the transactions listed in this subdivision.
1.8    (b) Sale and purchase include:
1.9    (1) any transfer of title or possession, or both, of tangible personal property, whether
1.10absolutely or conditionally, for a consideration in money or by exchange or barter; and
1.11    (2) the leasing of or the granting of a license to use or consume, for a consideration
1.12in money or by exchange or barter, tangible personal property, other than a manufactured
1.13home used for residential purposes for a continuous period of 30 days or more.
1.14    (c) Sale and purchase include the production, fabrication, printing, or processing of
1.15tangible personal property for a consideration for consumers who furnish either directly or
1.16indirectly the materials used in the production, fabrication, printing, or processing.
1.17    (d) Sale and purchase include the preparing for a consideration of food.
1.18Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
1.19to, the following:
1.20    (1) prepared food sold by the retailer;
1.21    (2) soft drinks;
1.22    (3) candy;
1.23    (4) dietary supplements; and
1.24    (5) all food sold through vending machines.
2.1    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
2.2gas, water, or steam for use or consumption within this state.
2.3    (f) A sale and a purchase includes the transfer for a consideration of prewritten
2.4computer software whether delivered electronically, by load and leave, or otherwise.
2.5    (g) A sale and a purchase includes the furnishing for a consideration of the following
2.7    (1) the privilege of admission to places of amusement, recreational areas, or athletic
2.8events, and the making available of amusement devices, tanning facilities, reducing
2.9salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
2.10    (2) lodging and related services by a hotel, rooming house, resort, campground,
2.11motel, or trailer camp, including furnishing the guest of the facility with access to
2.12telecommunication services, and the granting of any similar license to use real property in
2.13a specific facility, other than the renting or leasing of it for a continuous period of 30 days
2.14or more under an enforceable written agreement that may not be terminated without prior
2.15notice and including accommodations intermediary services provided in connection with
2.16other services provided under this clause;
2.17    (3) nonresidential parking services, whether on a contractual, hourly, or other
2.18periodic basis, except for parking at a meter;
2.19    (4) the granting of membership in a club, association, or other organization if:
2.20    (i) the club, association, or other organization makes available for the use of its
2.21members sports and athletic facilities, without regard to whether a separate charge is
2.22assessed for use of the facilities; and
2.23    (ii) use of the sports and athletic facility is not made available to the general public
2.24on the same basis as it is made available to members.
2.25Granting of membership means both onetime initiation fees and periodic membership
2.26dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
2.27squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
2.28swimming pools; and other similar athletic or sports facilities;
2.29    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
2.30material used in road construction; and delivery of concrete block by a third party if the
2.31delivery would be subject to the sales tax if provided by the seller of the concrete block; and
2.32    (6) services as provided in this clause:
2.33    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
2.34and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
2.35drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
2.36include services provided by coin operated facilities operated by the customer;
3.1    (ii) motor vehicle washing, waxing, and cleaning services, including services
3.2provided by coin operated facilities operated by the customer, and rustproofing,
3.3undercoating, and towing of motor vehicles;
3.4    (iii) building and residential cleaning, maintenance, and disinfecting services and
3.5pest control and exterminating services;
3.6    (iv) detective, security, burglar, fire alarm, and armored car services; but not including
3.7services performed within the jurisdiction they serve by off-duty licensed peace officers as
3.8defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
3.9for monitoring and electronic surveillance of persons placed on in-home detention
3.10pursuant to court order or under the direction of the Minnesota Department of Corrections;
3.11    (v) pet grooming services;
3.12    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
3.13and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
3.14plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
3.15clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
3.16public utility lines. Services performed under a construction contract for the installation of
3.17shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
3.18    (vii) massages, except when provided by a licensed health care facility or
3.19professional or upon written referral from a licensed health care facility or professional for
3.20treatment of illness, injury, or disease; and
3.21    (viii) the furnishing of lodging, board, and care services for animals in kennels and
3.22other similar arrangements, but excluding veterinary and horse boarding services.
3.23    In applying the provisions of this chapter, the terms "tangible personal property"
3.24and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
3.25and the provision of these taxable services, unless specifically provided otherwise.
3.26Services performed by an employee for an employer are not taxable. Services performed
3.27by a partnership or association for another partnership or association are not taxable if
3.28one of the entities owns or controls more than 80 percent of the voting power of the
3.29equity interest in the other entity. Services performed between members of an affiliated
3.30group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
3.31group of corporations" means those entities that would be classified as members of an
3.32affiliated group as defined under United States Code, title 26, section 1504, disregarding
3.33the exclusions in section 1504(b).
3.34    For purposes of clause (5), "road construction" means construction of (1) public
3.35roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
3.36metropolitan area up to the point of the emergency response location sign.
4.1    (h) A sale and a purchase includes the furnishing for a consideration of tangible
4.2personal property or taxable services by the United States or any of its agencies or
4.3instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
4.5    (i) A sale and a purchase includes the furnishing for a consideration of
4.6telecommunications services, ancillary services associated with telecommunication
4.7services, cable television services, and direct satellite services. Telecommunication
4.8services include, but are not limited to, the following services, as defined in section
4.9297A.669 : air-to-ground radiotelephone service, mobile telecommunication service,
4.10postpaid calling service, prepaid calling service, prepaid wireless calling service, and
4.11private communication services. The services in this paragraph are taxed to the extent
4.12allowed under federal law.
4.13    (j) A sale and a purchase includes the furnishing for a consideration of installation if
4.14the installation charges would be subject to the sales tax if the installation were provided
4.15by the seller of the item being installed.
4.16    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
4.17to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
4.18the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
4.1959B.02, subdivision 11.
4.20(l) A sale and a purchase includes the furnishing for a consideration of any medical
4.21procedure performed on an individual which is directed at improving the subject's
4.22appearance, body image, or self-esteem and which does not meaningfully promote the
4.23proper function of the body or prevent or treat illness or disease. This includes, but is not
4.24limited to: (i) cosmetic surgery; (ii) hair transplants; (iii) cosmetic injections; (iv) cosmetic
4.25soft tissue fillers; (v) dermabrasion and chemical peel; (vi) laser hair removal; (vii) laser
4.26skin resurfacing; (viii) laser treatment of leg veins; (ix) sclerotherapy; and (x) cosmetic
4.27dentistry. This paragraph does not apply to reconstructive surgery or dentistry, which
4.28includes any surgery performed on abnormal structures caused by or related to congenital
4.29defects, developmental abnormalities, trauma, infection, tumors, or disease, including
4.30procedures to improve function or give a more normal appearance.
4.31EFFECTIVE DATE.This section is effective for sales made after June 30, 2013.

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