SF 117

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

A bill for an act
relating to taxation; exempting public personal rapid
transit systems from certain taxes; amending Minnesota
Statutes 2004, sections 272.02, by adding a
subdivision; 290.05, subdivision 1; 297A.61, by adding
a subdivision; 297A.68, by adding a subdivision;
297A.71, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 272.02, is
amended by adding a subdivision to read:

new text begin Subd. 68. new text end

new text begin Personal rapid transit system. new text end

new text begin All property
used in the operation and support of a personal rapid transit
system as defined in section 297A.61, subdivision 37, that
provides service to the public on a regular and continuing
basis, is exempt, provided that it is operated independent of
any government subsidies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 290.05,
subdivision 1, is amended to read:

Subdivision 1.

Exempt entities.

The following
corporations, individuals, estates, trusts, and organizations
shall be exempted from taxation under this chapter, provided
that every such person or corporation claiming exemption under
this chapter, in whole or in part, must establish to the
satisfaction of the commissioner the taxable status of any
income or activity:

(a) corporations, individuals, estates, and trusts engaged
in the business of mining or producing iron ore and other ores
the mining or production of which is subject to the occupation
tax imposed by section 298.01; but if any such corporation,
individual, estate, or trust engages in any other business or
activity or has income from any property not used in such
business it shall be subject to this tax computed on the net
income from such property or such other business or activity.
Royalty shall not be considered as income from the business of
mining or producing iron ore within the meaning of this section;

(b) the United States of America, the state of Minnesota or
any political subdivision of either agencies or
instrumentalities, whether engaged in the discharge of
governmental or proprietary functions; deleted text begin and
deleted text end

(c) any insurance company new text begin ; and
new text end

new text begin (d) a corporation engaged in the business of operating a
personal rapid transit system, as defined in section 297A.61,
subdivision 37, in this state, independent of any government
subsidies, but if the corporation engages in any other business
or activity or has income from any property not used in the
business of operating a personal rapid transit system, it is
subject to this tax computed on the net income from the property
or business or activity new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end

Sec. 3.

Minnesota Statutes 2004, section 297A.61, is
amended by adding a subdivision to read:

new text begin Subd. 37. new text end

new text begin Personal rapid transit system. new text end

new text begin "Personal rapid
transit system" means a transportation system of small,
computer-controlled vehicles, transporting one to three
passengers on elevated guideways in a transportation network
operating on demand and nonstop directly to any stations in the
network.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 4.

Minnesota Statutes 2004, section 297A.68, is
amended by adding a subdivision to read:

new text begin Subd. 40. new text end

new text begin Personal rapid transit system. new text end

new text begin (a) Machinery,
equipment, and supplies purchased or leased, and used by the
purchaser or lessee in this state directly in the provision of a
personal rapid transit system as defined in section 297A.61,
subdivision 37, which provides service to the public on a
regular and continuing basis, are exempt, provided that the
system is operated independent of any government subsidies.
Machinery, equipment, and supplies that qualify for this
exemption include, but are not limited to, the following:
new text end

new text begin (1) vehicles, guideways, and related parts used directly in
the transit system;
new text end

new text begin (2) computers and equipment used primarily for operating,
controlling, and regulating the system;
new text end

new text begin (3) machinery, equipment, furniture, and fixtures necessary
for the functioning of system stations;
new text end

new text begin (4) machinery, equipment, implements, tools, and supplies
used to maintain vehicles, guideways, and stations; and
new text end

new text begin (5) electricity and other fuels used in the provision of
the transit service, including heating, cooling, and lighting of
system stations.
new text end

new text begin (b) This exemption does not include machinery, equipment,
and supplies used for nonproduction purposes such as operations
support and administration.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end

Sec. 5.

Minnesota Statutes 2004, section 297A.71, is
amended by adding a subdivision to read:

new text begin Subd. 33. new text end

new text begin Personal rapid transit system. new text end

new text begin Materials,
equipment, and supplies used in the construction, expansion, or
improvement of a personal rapid transit system as defined in
section 297A.61, subdivision 37, which provides service to the
public on a regular and continuing basis, are exempt, provided
that the system is operated independent of any government
subsidies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
purchases made after June 30, 2005.
new text end