Minnesota Legislature
SF 957
as introduced - 87th Legislature (2011 - 2012) Posted on 06/08/2012 01:08pm
Current Version - as introduced
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A bill for an act
relating to taxation; eliminating the market value homestead credit reimbursement
for residential homesteads located in towns; eliminating the sales tax on
purchases by towns; amending Minnesota Statutes 2010, sections 273.1384,
subdivision 4; 297A.70, subdivisions 1, 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to
read:
Subd. 4.
Payment.
(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than new text begin towns and new text end school districts, for the tax reductions granted
under this section in two equal installments on October 31 and December 26 of the taxes
payable year for which the reductions are granted, including in each payment the prior
year adjustments certified on the abstracts for that taxes payable year. The reimbursements
related to tax increments shall be issued in one installment each year on December 26.
(b) The commissioner of revenue shall certify the total of the tax reductions
granted under this section for each taxes payable year within each school district to the
commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section 273.1392.
Sec. 2.
Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:
Subdivision 1.
Scope.
(a) To the extent provided in this section, the gross receipts
from sales of items to or by, and storage, distribution, use, or consumption of items by the
organizations new text begin or units of local government new text end listed in this section are specifically exempted
from the taxes imposed by this chapter.
(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
governments and political subdivisions listed in this section are exempt from the taxes
imposed by this chapter.
(c) "Sales" includes purchases under an installment contract or lease purchase
agreement under section 465.71.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end
Sec. 3.
Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
Subd. 2.
Sales to government.
(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
nursing homes;
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section 473.4051;
(5) other states or political subdivisions of other states, if the sale would be exempt
from taxation if it occurred in that state; deleted text begin and
deleted text end
(6) deleted text begin sales todeleted text end public libraries, public library systems, multicounty, multitype library
systems as defined in section 134.001, county law libraries under chapter 134A, state
agency libraries, the state library under section 480.09, and the Legislative Reference
Librarynew text begin ; and
new text end
new text begin (7) townsnew text end .
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;
(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11,
except for leases entered into by the United States or its agencies or instrumentalities; or
(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g),
clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks,
and alcoholic beverages purchased directly by the United States or its agencies or
instrumentalities.
(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section 471.59.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end
Sec. 4.
Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
Subd. 3.
Sales of certain goods and services to government.
(a) The following
sales to or use by the specified governments and political subdivisions of the state are
exempt:
(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
fire apparatus to a political subdivision;
(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;
(3) chore and homemaking services to a political subdivision of the state to be
provided to elderly or disabled individuals;
(4) telephone services to the Office of Enterprise Technology that are used to provide
telecommunications services through the enterprise technology revolving fund;
(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;
(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
(7) motor vehicles purchased or leased by political subdivisions of the state if the
vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b),
exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax
under section 297B.03, clause (12);
(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of
that equipment;
deleted text begin
(9) sales to a town of gravel and of machinery, equipment, and accessories, except
motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
motor vehicles exempt from tax under section 297B.03, clause (10);
deleted text end
deleted text begin (10)deleted text end new text begin (9)new text end the removal of trees, bushes, or shrubs for the construction and maintenance
of roads, trails, or firebreaks when purchased by an agency of the state or a political
subdivision of the state; and
deleted text begin (11)deleted text end new text begin (10)new text end purchases by the Metropolitan Council or the Department of Transportation
of vehicles and repair parts to equip operations provided for in section 174.90, including,
but not limited to, the Northstar Corridor Rail project.
(b) For purposes of this subdivision, "firefighters personal protective equipment"
means helmets, including face shields, chin straps, and neck liners; bunker coats and
pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
personal alert safety systems; spanner belts; optical or thermal imaging search devices;
and all safety equipment required by the Occupational Safety and Health Administration.
(c) For purchases of items listed in paragraph (a), clause (11), the tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
then refunded in the manner provided in section 297A.75.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end