HF 898

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

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting sales to outpatient 
  1.3             surgical centers from the sales and use tax; amending 
  1.4             Minnesota Statutes 1998, section 297A.25, subdivision 
  1.5             63. 
  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 63, is amended to read: 
  1.9      Subd. 63.  [HOSPITALS AND OUTPATIENT SURGICAL CENTERS.] (a) 
  1.10  The gross receipts from the sale of tangible personal property 
  1.11  to, and the storage, use, or consumption of such property by, a 
  1.12  hospital are exempt, if the property purchased is to be used in 
  1.13  providing hospital services to human beings.  For purposes of 
  1.14  this subdivision, "hospital" means a hospital organized and 
  1.15  operated for charitable purposes within the meaning of section 
  1.16  501(c)(3) of the Internal Revenue Code of 1986, as amended, and 
  1.17  licensed under chapter 144 or by any other jurisdiction.  For 
  1.18  purposes of this subdivision, "hospital services" are means 
  1.19  services authorized or required to be performed by 
  1.20  a "hospital" hospital under chapter 144 and regulations rules 
  1.21  thereunder or under the applicable licensure law of any other 
  1.22  jurisdiction.  This exemption does 
  1.23     (b) The gross receipts from the sale of tangible personal 
  1.24  property to, and the storage, use, or consumption of such 
  1.25  property by, an outpatient surgical center are exempt, if the 
  2.1   property purchased is to be used in providing outpatient 
  2.2   surgical services to human beings.  For purposes of this 
  2.3   subdivision, "outpatient surgical center" means an outpatient 
  2.4   surgical center organized and operated for charitable purposes 
  2.5   within the meaning of section 501(c)(3) of the Internal Revenue 
  2.6   Code of 1986, as amended, and licensed under chapter 144 or by 
  2.7   any other jurisdiction.  For the purposes of this subdivision, 
  2.8   "outpatient surgical services" means:  (1) services authorized 
  2.9   or required to be performed by an outpatient surgical center 
  2.10  under chapter 144 and rules thereunder or under the applicable 
  2.11  licensure law of any other jurisdiction; and (2) urgent care.  
  2.12  For purposes of this subdivision, "urgent care" means health 
  2.13  services furnished to a person whose medical condition is 
  2.14  sufficiently acute to require treatment unavailable through, or 
  2.15  inappropriate to be provided by, a clinic or physician's office, 
  2.16  but not so acute as to require treatment in a hospital emergency 
  2.17  room.  
  2.18     (c) These exemptions do not apply to purchases made by a 
  2.19  clinic, physician's office, or any other medical facility not 
  2.20  operating as a hospital or outpatient surgical center, even 
  2.21  though the clinic, office, or facility may be owned and operated 
  2.22  by a hospital or outpatient surgical center.  Sales exempted by 
  2.23  this subdivision do not include sales under section 297A.01, 
  2.24  subdivision 3, paragraphs (c) and (e).  This exemption 
  2.25  does These exemptions do not apply to building, construction, or 
  2.26  reconstruction materials purchased by a contractor or a 
  2.27  subcontractor as a part of a lump-sum contract or similar type 
  2.28  of contract with a guaranteed maximum price covering both labor 
  2.29  and materials for use in the construction, alteration, or repair 
  2.30  of a hospital or outpatient surgical center.  This exemption 
  2.31  does These exemptions do not apply to construction materials to 
  2.32  be used in constructing buildings or facilities which will not 
  2.33  be used principally by a hospital or outpatient surgical 
  2.34  center.  This exemption does These exemptions do not apply to 
  2.35  the leasing of a motor vehicle as defined in section 297B.01, 
  2.36  subdivision 5. 
  3.1      Sec. 2.  [EFFECTIVE DATE.] 
  3.2      Section 1 is effective for sales and purchases made after 
  3.3   June 30, 1999.