SF 664

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; sales and use; exempting certain 
  1.3             materials and short-lived items used in metalcasting; 
  1.4             amending Minnesota Statutes 1998, section 297A.25, 
  1.5             subdivision 9. 
  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 9, is amended to read: 
  1.9      Subd. 9.  [MATERIALS CONSUMED IN PRODUCTION.] The gross 
  1.10  receipts from the sale of and the storage, use, or consumption 
  1.11  of all materials, including chemicals, fuels, petroleum 
  1.12  products, lubricants, packaging materials, including returnable 
  1.13  containers used in packaging food and beverage products, feeds, 
  1.14  seeds, fertilizers, electricity, gas and steam, used or consumed 
  1.15  in agricultural or industrial production of personal property 
  1.16  intended to be sold ultimately at retail, whether or not the 
  1.17  item so used becomes an ingredient or constituent part of the 
  1.18  property produced are exempt.  Seeds, trees, fertilizers, and 
  1.19  herbicides purchased for use by farmers in the Conservation 
  1.20  Reserve Program under United States Code, title 16, section 
  1.21  590h, as amended through December 31, 1991, the Integrated Farm 
  1.22  Management Program under section 1627 of Public Law Number 
  1.23  101-624, the Wheat and Feed Grain Programs under sections 301 to 
  1.24  305 and 401 to 405 of Public Law Number 101-624, and the 
  1.25  conservation reserve program under sections 103F.505 to 
  2.1   103F.531, are included in this exemption.  Sales to a 
  2.2   veterinarian of materials used or consumed in the care, 
  2.3   medication, and treatment of horses and agricultural production 
  2.4   animals are exempt under this subdivision.  Chemicals used for 
  2.5   cleaning food processing machinery and equipment are included in 
  2.6   this exemption.  Materials, including chemicals, fuels, and 
  2.7   electricity purchased by persons engaged in agricultural or 
  2.8   industrial production to treat waste generated as a result of 
  2.9   the production process are included in this exemption.  Such 
  2.10  production shall include, but is not limited to, research, 
  2.11  development, design or production of any tangible personal 
  2.12  property, manufacturing, processing (other than by restaurants 
  2.13  and consumers) of agricultural products whether vegetable or 
  2.14  animal, commercial fishing, refining, smelting, reducing, 
  2.15  brewing, distilling, printing, mining, quarrying, lumbering, 
  2.16  generating electricity and the production of road building 
  2.17  materials.  Such production shall not include painting, 
  2.18  cleaning, repairing or similar processing of property except as 
  2.19  part of the original manufacturing process.  Machinery, 
  2.20  equipment, implements, tools, accessories, appliances, 
  2.21  contrivances, furniture and fixtures, used in such production 
  2.22  and fuel, electricity, gas or steam used for space heating or 
  2.23  lighting, are not included within this exemption; however, 
  2.24  accessory tools, equipment and other short lived items, which 
  2.25  are separate detachable units used in producing a direct effect 
  2.26  upon the product, where such items have an ordinary useful life 
  2.27  of less than 12 months, are included within the exemption 
  2.28  provided herein.  The following materials, tools, and equipment 
  2.29  used in metalcasting are exempt under this subdivision: 
  2.30  crucibles, thermocouple protection sheaths and tubes, stalk 
  2.31  tubes, refractory materials, molten metal filters and filter 
  2.32  boxes, and degassing lances.  Electricity used to make snow for 
  2.33  outdoor use for ski hills, ski slopes, or ski trails is included 
  2.34  in this exemption.  Petroleum and special fuels used in 
  2.35  producing or generating power for propelling ready-mixed 
  2.36  concrete trucks on the public highways of this state are not 
  3.1   included in this exemption. 
  3.2      Sec. 2.  [EFFECTIVE DATE.] 
  3.3      Section 1 is effective the day following final enactment 
  3.4   and applies retroactively to all open tax years and to 
  3.5   assessments and appeals under Minnesota Statutes, sections 
  3.6   289A.38 and 289A.65, for which the time limits have not expired 
  3.7   on the date of final enactment of this act.  The provisions of 
  3.8   Minnesota Statutes, section 289A.50, apply to refunds claimed 
  3.9   under section 1.  Refunds claimed under section 1 must be filed 
  3.10  by the later of December 31, 1999, or the time limit under 
  3.11  Minnesota Statutes, section 289A.40, subdivision 1.