SF 1751

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 tax; removing 
  1.3             access to amusement devices from the definition of a 
  1.4             taxable service; amending Minnesota Statutes 2000, 
  1.5             section 297A.61, subdivision 16. 
  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 16, is amended to read: 
  1.9      Subd. 16.  [TAXABLE SERVICES.] (a) "Taxable services" means 
  1.10  the services listed in this subdivision and other services 
  1.11  listed in subdivision 3. 
  1.12     (b) Taxable services includes the granting of the privilege 
  1.13  of admission to places of amusement, recreational areas, or 
  1.14  athletic events, and the making available of amusement devices, 
  1.15  tanning facilities, reducing salons, steam baths, turkish baths, 
  1.16  health clubs, and spas or athletic facilities. 
  1.17     (c) Taxable services includes the furnishing of lodging and 
  1.18  related services by a hotel, rooming house, resort, campground, 
  1.19  motel, or trailer camp and the granting of any similar license 
  1.20  to use real property other than the renting or leasing thereof 
  1.21  for a continuous period of 30 days or more. 
  1.22     (d) Taxable services includes the furnishing of cable 
  1.23  television services or similar television services, including, 
  1.24  but not limited to, charges for basic, premium, pay-per-view, 
  1.25  and any other similar service. 
  2.1      (e) Taxable services includes the furnishing of parking 
  2.2   services, whether on a contractual, hourly, or other periodic 
  2.3   basis, except for parking at a meter. 
  2.4      (f) Taxable services includes the granting of membership in 
  2.5   a club, association, or other organization if: 
  2.6      (1) the club, association, or other organization makes 
  2.7   available for the use of its members sports and athletic 
  2.8   facilities, without regard to whether a separate charge is 
  2.9   assessed for use of the facilities; and 
  2.10     (2) use of the sports and athletic facility is not made 
  2.11  available to the general public on the same basis as it is made 
  2.12  available to members.  
  2.13  Granting of membership means both one-time initiation fees and 
  2.14  periodic membership dues.  Sports and athletic facilities 
  2.15  include golf courses; tennis, racquetball, handball, and squash 
  2.16  courts; basketball and volleyball facilities; running tracks; 
  2.17  exercise equipment; swimming pools; and other similar athletic 
  2.18  or sports facilities. 
  2.19     (g) Taxable services includes the furnishing of the 
  2.20  following services as provided in this paragraph: 
  2.21     (1) laundry and dry cleaning services including cleaning, 
  2.22  pressing, repairing, altering, and storing clothes, linen 
  2.23  services and supply, cleaning and blocking hats, and carpet, 
  2.24  drapery, upholstery, and industrial cleaning.  Laundry and dry 
  2.25  cleaning services do not include services provided by coin 
  2.26  operated facilities operated by the customer; 
  2.27     (2) motor vehicle washing, waxing, and cleaning services, 
  2.28  including services provided by coin operated facilities operated 
  2.29  by the customer, and rustproofing, undercoating, and towing of 
  2.30  motor vehicles; 
  2.31     (3) building and residential cleaning, maintenance, and 
  2.32  disinfecting and exterminating services; 
  2.33     (4) detective, security, burglar, fire alarm, and armored 
  2.34  car services; but not including services performed within the 
  2.35  jurisdiction they serve by off-duty licensed peace officers as 
  2.36  defined in section 626.84, subdivision 1, or services provided 
  3.1   by a nonprofit organization for monitoring and electronic 
  3.2   surveillance of persons placed on in-home detention pursuant to 
  3.3   court order or under the direction of the Minnesota department 
  3.4   of corrections; 
  3.5      (5) pet grooming services; 
  3.6      (6) lawn care, fertilizing, mowing, spraying and sprigging 
  3.7   services; garden planting and maintenance; tree, bush, and shrub 
  3.8   pruning, bracing, spraying, and surgery; indoor plant care; 
  3.9   tree, bush, shrub, and stump removal; and tree trimming for 
  3.10  public utility lines.  Services performed under a construction 
  3.11  contract for the installation of shrubbery, plants, sod, trees, 
  3.12  bushes, and similar items are not taxable; 
  3.13     (7) massages, except when provided by a licensed health 
  3.14  care facility or professional or upon written referral from a 
  3.15  licensed health care facility or professional for treatment of 
  3.16  illness, injury, or disease; and 
  3.17     (8) the furnishing of lodging, board, and care services for 
  3.18  animals in kennels and other similar arrangements, but excluding 
  3.19  veterinary and horse boarding services. 
  3.20     The services listed in this paragraph are taxable under 
  3.21  section 297A.62 if the service is performed wholly within 
  3.22  Minnesota or if the service is performed partly within and 
  3.23  partly outside Minnesota and the greater proportion of the 
  3.24  service is performed in Minnesota, based on the cost of 
  3.25  performance.  In applying the provisions of this chapter, the 
  3.26  terms "tangible personal property" and "sales at retail" include 
  3.27  taxable services and the provision of taxable services, unless 
  3.28  specifically provided otherwise.  Services performed by an 
  3.29  employee for an employer are not taxable.  Services performed by 
  3.30  a partnership or association for another partnership or 
  3.31  association are not taxable if one of the entities owns or 
  3.32  controls more than 80 percent of the voting power of the equity 
  3.33  interest in the other entity.  Services performed between 
  3.34  members of an affiliated group of corporations are not taxable.  
  3.35  For purposes of this section, "affiliated group of corporations" 
  3.36  includes those entities that would be classified as members of 
  4.1   an affiliated group under United States Code, title 26, section 
  4.2   1504, and that are eligible to file a consolidated tax return 
  4.3   for federal income tax purposes. 
  4.4      [EFFECTIVE DATE.] This section is effective for sales made 
  4.5   after June 30, 2001.