SF 2075

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; extending the time period for 
  1.3             certain events that qualify for a sales tax exemption; 
  1.4             amending Minnesota Statutes 1997 Supplement, section 
  1.5             297A.256, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.8   297A.256, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [FUNDRAISING SALES BY NONPROFIT GROUPS.] 
  1.10  Notwithstanding the provisions of this chapter, the following 
  1.11  sales made by a "nonprofit organization" are exempt from the 
  1.12  sales and use tax. 
  1.13     (a)(1) All sales made by an organization for fundraising 
  1.14  purposes if that organization exists solely for the purpose of 
  1.15  providing educational or social activities for young people 
  1.16  primarily age 18 and under.  This exemption shall apply only if 
  1.17  the gross annual sales receipts of the organization from 
  1.18  fundraising do not exceed $10,000. 
  1.19     (2) A club, association, or other organization of 
  1.20  elementary or secondary school students organized for the 
  1.21  purpose of carrying on sports, educational, or other 
  1.22  extracurricular activities is a separate organization from the 
  1.23  school district or school for purposes of applying the $10,000 
  1.24  limit.  This paragraph does not apply if the sales are derived 
  1.25  from admission charges or from activities for which the money 
  2.1   must be deposited with the school district treasurer under 
  2.2   section 123.38, subdivision 2, or be recorded in the same manner 
  2.3   as other revenues or expenditures of the school district under 
  2.4   section 123.38, subdivision 2b. 
  2.5      (b) All sales made by an organization for fundraising 
  2.6   purposes if that organization is a senior citizen group or 
  2.7   association of groups that in general limits membership to 
  2.8   persons age 55 or older and is organized and operated 
  2.9   exclusively for pleasure, recreation and other nonprofit 
  2.10  purposes and no part of the net earnings inure to the benefit of 
  2.11  any private shareholders.  This exemption shall apply only if 
  2.12  the gross annual sales receipts of the organization from 
  2.13  fundraising do not exceed $10,000. 
  2.14     (c) The gross receipts from the sales of tangible personal 
  2.15  property at, admission charges for, and sales of food, meals, or 
  2.16  drinks at fundraising events sponsored by a nonprofit 
  2.17  organization when the entire proceeds, except for the necessary 
  2.18  expenses therewith, will be used solely and exclusively for 
  2.19  charitable, religious, or educational purposes.  This exemption 
  2.20  does not apply to admission charges for events involving bingo 
  2.21  or other gambling activities or to charges for use of amusement 
  2.22  devices involving bingo or other gambling activities.  For 
  2.23  purposes of this paragraph, a "nonprofit organization" means any 
  2.24  unit of government, corporation, society, association, 
  2.25  foundation, or institution organized and operated for 
  2.26  charitable, religious, educational, civic, fraternal, senior 
  2.27  citizens' or veterans' purposes, no part of the net earnings of 
  2.28  which inures to the benefit of a private individual. 
  2.29     If the profits are not used solely and exclusively for 
  2.30  charitable, religious, or educational purposes, the entire gross 
  2.31  receipts are subject to tax. 
  2.32     Each nonprofit organization shall keep a separate 
  2.33  accounting record, including receipts and disbursements from 
  2.34  each fundraising event.  All deductions from gross receipts must 
  2.35  be documented with receipts and other records.  If records are 
  2.36  not maintained as required, the entire gross receipts are 
  3.1   subject to tax. 
  3.2      The exemption provided by this paragraph does not apply to 
  3.3   any sale made by or in the name of a nonprofit corporation as 
  3.4   the active or passive agent of a person that is not a nonprofit 
  3.5   corporation. 
  3.6      The exemption for fundraising events under this paragraph 
  3.7   is limited to no more than 24 days a year.  Fundraising events 
  3.8   conducted on premises leased for more than four five days but 
  3.9   less than 30 days do not qualify for this exemption. 
  3.10     (d) The gross receipts from the sale or use of tickets or 
  3.11  admissions to a golf tournament held in Minnesota are exempt if 
  3.12  the beneficiary of the tournament's net proceeds qualifies as a 
  3.13  tax-exempt organization under section 501(c)(3) of the Internal 
  3.14  Revenue Code, as amended through December 31, 1994, including a 
  3.15  tournament conducted on premises leased or occupied for more 
  3.16  than four days. 
  3.17     Sec. 2.  [EFFECTIVE DATE.] 
  3.18     Section 1 is effective for sales after June 30, 1998.