SF 2994

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 10:57am

A bill for an act
relating to taxation; sales and use; modifying a sales tax construction exemption;
amending Minnesota Statutes 2009 Supplement, sections 297A.71, subdivision
41; 297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 297A.71, subdivision 41,
is amended to read:

Subd. 41.

Construction materials; deleted text begin meat processing facility deleted text end new text begin economic
development new text end .

Materials and supplies used or consumed in, and equipment incorporated
into, the construction deleted text begin or improvement of a meat processing facility deleted text end new text begin of an industrial park
and related public infrastructure new text end are exempt. This facility must be constructed deleted text begin to replace deleted text end new text begin in
a city where new text end a meat processing facility new text begin was new text end destroyed in a fire in April 2009, that employed
more than 200 employees at the time of the destruction. The tax must be imposed and
collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
after June 30, 2011, in the manner provided in section 297A.75. new text begin The total amount of
refund allowed under this section is limited to $1,700,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 1, is
amended to read:

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) elevators and 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 and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(9) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(10) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(11) tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41;

(12) commuter rail vehicle and repair parts under section 297A.70, subdivision
3, clause (11);

(13) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40; and

(14) materials, supplies, and equipment for construction or improvement of deleted text begin a meat
processing facility deleted text end new text begin an industrial park and related public infrastructure new text end exempt under
section 297A.71, subdivision 41.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 2, is
amended to read:

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) and (7), 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;

(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (10) deleted text begin , deleted text end new text begin and new text end (11), deleted text begin and (14), deleted text end the owner of the qualifying
business; and

(8) for subdivision 1, clauses (12) deleted text begin and deleted text end new text begin , new text end (13), new text begin and (14), new text end the applicant must be the
governmental entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end