SF 1643

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

A bill for an act
relating to taxation; sales and use; exempting certain
sales to counties that support certain judicial
functions; amending Minnesota Statutes 2004, sections
297A.70, subdivision 3; 297A.71, by adding a
subdivision; 297A.75.

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

Section 1.

Minnesota Statutes 2004, 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 Department of Administration
that are used to provide telecommunications services through the
intertechnologies 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 and
deleted text end

(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) new text begin ; and
new text end

new text begin (10) sales to a county to operate and maintain county
judicial facilities occupied by employees who are state court
employees, including electricity, gas, and other fuels used for
operation of equipment, lighting, and space heating and cooling new text end .

(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.

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. 2.

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 County judicial buildings. new text end

new text begin Materials and
supplies used or consumed in, and equipment incorporated into,
the construction, expansion, remodeling, or improvement of a
county judicial facility occupied or to be occupied by employees
who are state court employees.
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. 3.

Minnesota Statutes 2004, section 297A.75, is
amended to read:

297A.75 REFUND; APPROPRIATION.

Subdivision 1.

Tax collected.

The tax on the gross
receipts from the sale of the following exempt items must be
imposed and collected as if the sale were taxable and the rate
under section 297A.62, subdivision 1, applied. The exempt items
include:

(1) capital equipment exempt under section 297A.68,
subdivision 5;

(2) building materials for an agricultural processing
facility exempt under section 297A.71, subdivision 13;

(3) building materials for mineral production facilities
exempt under section 297A.71, subdivision 14;

(4) building materials for correctional facilities under
section 297A.71, subdivision 3;

(5) building materials used in a residence for disabled
veterans exempt under section 297A.71, subdivision 11;

(6) chair lifts, ramps, elevators, and associated building
materials exempt under section 297A.71, subdivision 12;

(7) building materials for the Long Lake Conservation
Center exempt under section 297A.71, subdivision 17;

(8) materials, supplies, fixtures, furnishings, and
equipment for a county law enforcement and family service center
under section 297A.71, subdivision 26; deleted text begin and
deleted text end

(9) materials and supplies for qualified low-income housing
under section 297A.71, subdivision 23 new text begin ; and
new text end

new text begin (10) building materials, supplies, and equipment for county
judicial facilities under section 297A.71, subdivision 33 new text end .

Subd. 2.

Refund; eligible persons.

Upon application on
forms prescribed by the commissioner, a refund equal to the tax
paid on the gross receipts of the exempt items must be paid to
the applicant. Only the following persons may apply for the
refund:

(1) for subdivision 1, clauses (1) to (3), the applicant
must be the purchaser;

(2) for subdivision 1, clauses (4), (7), and (8), the
applicant must be the governmental subdivision;

(3) for subdivision 1, clause (5), the applicant must be
the recipient of the benefits provided in United States Code,
title 38, chapter 21;

(4) for subdivision 1, clause (6), the applicant must be
the owner of the homestead property; deleted text begin and
deleted text end

(5) for subdivision 1, clause (9), the owner of the
qualified low-income housing project new text begin ; and
new text end

new text begin (6) for subdivision 1, clause (10), the applicant must be
the county new text end .

Subd. 3.

Application.

(a) The application must include
sufficient information to permit the commissioner to verify the
tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clause (4), (5), (6), (7), (8),
deleted text begin or deleted text end (9), new text begin or (10), new text end the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless
otherwise specifically provided by this subdivision. The
provisions of sections 289A.40 and 289A.50 apply to refunds
under this section.

(b) An applicant may not file more than two applications
per calendar year for refunds for taxes paid on capital
equipment exempt under section 297A.68, subdivision 5.

Subd. 4.

Interest.

Interest must be paid on the refund
at the rate in section 270.76 from 90 days after the refund
claim is filed with the commissioner for taxes paid under
subdivision 1.

Subd. 5.

Appropriation.

The amount required to make the
refunds is annually appropriated to the commissioner.

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