SF 1379

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; repealing the payment and refund 
  1.3             requirements relating to sales of exempt capital 
  1.4             equipment; amending Minnesota Statutes 1998, sections 
  1.5             289A.56, subdivision 4; 297A.2572; and 297A.2573; 
  1.6             repealing Minnesota Statutes 1998, section 297A.15, 
  1.7             subdivision 5. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 289A.56, 
  1.10  subdivision 4, is amended to read: 
  1.11     Subd. 4.  [CAPITAL EQUIPMENT REFUNDS; REFUNDS TO 
  1.12  PURCHASERS.] Notwithstanding subdivision 3, for refunds payable 
  1.13  under section 297A.15, subdivision 5, interest is computed from 
  1.14  the date the refund claim is filed with the commissioner.  for 
  1.15  refunds payable under section 289A.50, subdivision 2a, interest 
  1.16  is computed from the 20th day of the month following the month 
  1.17  of the invoice date for the purchase which is the subject of the 
  1.18  refund. 
  1.19     Sec. 2.  Minnesota Statutes 1998, section 297A.2572, is 
  1.20  amended to read: 
  1.21     297A.2572 [AGRICULTURE PROCESSING FACILITY MATERIALS; 
  1.22  EXEMPTION.] 
  1.23     Purchases of construction materials and supplies are exempt 
  1.24  from the sales and use taxes imposed under this chapter, 
  1.25  regardless of whether purchased by the owner or a contractor, 
  1.26  subcontractor, or builder, if the materials and supplies are 
  2.1   used or consumed in constructing an agriculture processing 
  2.2   facility as defined in section 469.1811 in which the total 
  2.3   capital investment in the processing facility is expected to 
  2.4   exceed $100,000,000.  The tax shall be imposed and collected as 
  2.5   if the rate under section 297A.02, subdivision 1, applied, and 
  2.6   then refunded in the manner provided in Minnesota Statutes 1998, 
  2.7   section 297A.15, subdivision 5. 
  2.8      Sec. 3.  Minnesota Statutes 1998, section 297A.2573, is 
  2.9   amended to read: 
  2.10     297A.2573 [MINERAL PRODUCTION FACILITIES; EXEMPTION.] 
  2.11     Materials, equipment, and supplies used or consumed in 
  2.12  constructing, or incorporated into the construction of exempted 
  2.13  facilities as defined in this section are exempt from the taxes 
  2.14  imposed under this chapter and from any sales and use tax 
  2.15  imposed by a local unit of government, notwithstanding any 
  2.16  ordinance or city charter provision. 
  2.17     As used in this section, "exempted facilities" means: 
  2.18     (1) a value added iron products plant, which may be either 
  2.19  a new plant or a facility incorporated into an existing plant 
  2.20  that produces iron upgraded to a minimum of 75 percent iron 
  2.21  content or any iron alloy with a total minimum metallic content 
  2.22  of 90 percent; 
  2.23     (2) a facility used for the manufacture of fluxed taconite 
  2.24  pellets as defined in section 298.24; 
  2.25     (3) a new capital project that has a total cost of over 
  2.26  $40,000,000 that is directly related to production, cost, or 
  2.27  quality at an existing taconite facility that does not qualify 
  2.28  under clause (1) or (2); and 
  2.29     (4) a new mine or minerals processing plant for any mineral 
  2.30  subject to the net proceeds tax imposed under section 298.015. 
  2.31     The tax shall be imposed and collected as if the rate under 
  2.32  section 297A.02, subdivision 1, applied, and then refunded in 
  2.33  the manner provided in Minnesota Statutes 1998, section 297A.15, 
  2.34  subdivision 5. 
  2.35     Sec. 4.  [REPEALER.] 
  2.36     Minnesota Statutes 1998, section 297A.15, subdivision 5, is 
  3.1   repealed. 
  3.2      Sec. 5.  [EFFECTIVE DATE.] 
  3.3      Sections 1 to 4 are effective for sales and purchases 
  3.4   occurring after December 31, 1999.