SF 1023

as introduced - 82nd Legislature (2001 - 2002) 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             food sold in vending machines; amending Minnesota 
  1.4             Statutes 2000, sections 297A.61, subdivision 3; and 
  1.5             297A.68, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 297A.61, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [SALE AND PURCHASE.] (a) "Sale" and "purchase" 
  1.10  include, but are not limited to, each of the transactions listed 
  1.11  in this subdivision. 
  1.12     (b) Sale and purchase include any transfer of title or 
  1.13  possession, or both, of tangible personal property, whether 
  1.14  absolutely or conditionally, and the leasing of or the granting 
  1.15  of a license to use or consume, for a consideration, tangible 
  1.16  personal property, other than a manufactured home used for 
  1.17  residential purposes for a continuous period of 30 days or more. 
  1.18     (c) Sale and purchase include the production, fabrication, 
  1.19  printing, or processing of tangible personal property for a 
  1.20  consideration for consumers who furnish either directly or 
  1.21  indirectly the materials used in the production, fabrication, 
  1.22  printing, or processing. 
  1.23     (d) Sale and purchase include the furnishing, preparing, or 
  1.24  serving for a consideration of food or drinks.  Notwithstanding 
  1.25  section 297A.67, subdivision 2, taxable food or drinks include, 
  2.1   but are not limited to, the following: 
  2.2      (1) food or drinks sold by the retailer for immediate 
  2.3   consumption on the retailer's premises.  Food and drinks sold 
  2.4   within a building or grounds that require an admission charge 
  2.5   for entrance are presumed to be sold for consumption on the 
  2.6   premises; 
  2.7      (2) food or drinks prepared by the retailer for immediate 
  2.8   consumption either on or off the retailer's premises.  For 
  2.9   purposes of this subdivision, "food or drinks prepared for 
  2.10  immediate consumption" means any food product upon which an act 
  2.11  of preparation including, but not limited to, cooking, mixing, 
  2.12  sandwich making, blending, heating, or pouring has been 
  2.13  performed by the retailer so the food product may be immediately 
  2.14  consumed by the purchaser; 
  2.15     (3) ice cream, ice milk, frozen yogurt products, or frozen 
  2.16  novelties sold in single or individual servings including, but 
  2.17  not limited to, cones, sundaes, and snow cones; 
  2.18     (4) soft drinks and other beverages, including all 
  2.19  carbonated and noncarbonated beverages or drinks sold in liquid 
  2.20  form, but not including beverages or drinks which contain milk 
  2.21  or milk products, beverages or drinks containing 15 or more 
  2.22  percent fruit juice, and noncarbonated and noneffervescent 
  2.23  bottled water sold in individual containers of one-half gallon 
  2.24  or more in size; 
  2.25     (5) gum, candy, and candy products; 
  2.26     (6) ice; 
  2.27     (7) all food sold from vending machines, to the extent that 
  2.28  it is not exempt under section 297A.68, subdivision 35; 
  2.29     (8) all food for immediate consumption sold from concession 
  2.30  stands and vehicles; 
  2.31     (9) party trays; 
  2.32     (10) all meals and single servings of packaged snack food 
  2.33  sold in restaurants and bars; and 
  2.34     (11) bakery products that are: 
  2.35     (i) prepared by the retailer for consumption on the 
  2.36  retailer's premises; 
  3.1      (ii) sold at a place that charges admission; 
  3.2      (iii) sold from vending machines; or 
  3.3      (iv) sold in single or individual servings from concession 
  3.4   stands, vehicles, bars, and restaurants.  
  3.5      For purposes of this paragraph, "single or individual 
  3.6   servings" does not include products when sold in bulk containers 
  3.7   or bulk packaging.  
  3.8      For purposes of this paragraph, "premises" means the total 
  3.9   space and facilities, including buildings, grounds, and parking 
  3.10  lots that are made available or that are available for use by 
  3.11  the retailer or customer for the purpose of sale or consumption 
  3.12  of prepared food and drinks.  The premises of a caterer is the 
  3.13  place where the catered food or drinks are served. 
  3.14     (e) A sale and a purchase includes the furnishing for a 
  3.15  consideration of electricity, gas, water, or steam for use or 
  3.16  consumption within this state or local exchange telephone 
  3.17  service, intrastate toll service, and interstate toll service, 
  3.18  if that service originates from and is charged to a telephone 
  3.19  located in this state.  Telephone service includes (1) paging 
  3.20  services, and (2) private communication service, as defined in 
  3.21  United States Code, title 26, section 4252(d), except for 
  3.22  private communication service purchased by an agent acting on 
  3.23  behalf of the state lottery.  Telephone service does not include 
  3.24  services purchased with a prepaid telephone calling card.  The 
  3.25  furnishing for a consideration of access to telephone services 
  3.26  by a hotel to its guests is a sale.  The furnishing for a 
  3.27  consideration of items listed in this paragraph by a municipal 
  3.28  corporation is a sale. 
  3.29     (f) A sale and a purchase includes the transfer for a 
  3.30  consideration of computer software.  
  3.31     (g) A sale and a purchase includes the furnishing for a 
  3.32  consideration of taxable services as defined in subdivision 16. 
  3.33     (h) A sale and a purchase includes the furnishing for a 
  3.34  consideration of tangible personal property or taxable services 
  3.35  by the United States or any of its agencies or 
  3.36  instrumentalities, or the state of Minnesota, its agencies, 
  4.1   instrumentalities, or political subdivisions. 
  4.2      [EFFECTIVE DATE.] This section is effective for sales made 
  4.3   after June 30, 2001. 
  4.4      Sec. 2.  Minnesota Statutes 2000, section 297A.68, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 35.  [FOOD SOLD IN VENDING MACHINES.] Food products 
  4.7   sold in vending machines are exempt, regardless of the type or 
  4.8   size of packaging, provided that it meets the definition of 
  4.9   exempt food products under section 297A.68, subdivision 2.  This 
  4.10  exemption does not apply to bakery products under section 
  4.11  297A.61, subdivision 3, paragraph (d), clause (11), or to 
  4.12  noncarbonated, noneffervescent bottled water sold in containers 
  4.13  of less than one-half gallon. 
  4.14     [EFFECTIVE DATE.] This section is effective for sales made 
  4.15  after June 30, 2001.