SF 2164

as introduced - 87th Legislature (2011 - 2012) Posted on 05/24/2012 03:40pm

A bill for an act
relating to taxation; sales and use; exempting most purchases by certain nursing
homes and boarding care homes; amending Minnesota Statutes 2010, section
297A.70, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 297A.70, is amended by adding a
subdivision to read:

new text begin Subd. 18. new text end

new text begin Nursing homes and boarding care homes. new text end

new text begin (a) All sales, except those
listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
care home certified as a nursing facility under title 19 of the Social Security Act are
exempt if the facility:
new text end

new text begin (1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code; and
new text end

new text begin (2) is certified to participate in the medical assistance program under title 19 of the
Social Security Act, or certifies to the commissioner that it does not discharge residents
due to the inability to pay.
new text end

new text begin (b) This exemption does not apply to the following sales:
new text end

new text begin (1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
new text end

new text begin (2) construction materials purchased by tax-exempt entities or their contractors to
be used in constructing buildings or facilities that will not be used principally by the
tax-exempt entities;
new text end

new text begin (3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
297A.67, subdivision 2; and
new text end

new text begin (4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
as provided in paragraph (c).
new text end

new text begin (c) This exemption applies to the leasing of a motor vehicle as defined in section
297B.01, subdivision 11, only if the vehicle is:
new text end

new text begin (1) a truck, as defined in section 168.002; a bus, as defined in section 168.002; or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and
new text end

new text begin (2) intended to be used primarily to transport tangible personal property or residents
of the nursing home or boarding care home.
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, 2012.
new text end