SF 3077

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; exempting 
  1.3             materials and equipment incorporated into certain 
  1.4             low-income public housing units and developments; 
  1.5             amending Minnesota Statutes 2001 Supplement, section 
  1.6             297A.71, subdivision 23. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   297A.71, subdivision 23, is amended to read: 
  1.10     Subd. 23.  [CONSTRUCTION MATERIALS FOR QUALIFIED LOW-INCOME 
  1.11  HOUSING PROJECTS.] (a) Purchases of materials and supplies used 
  1.12  or consumed in and equipment incorporated into the construction, 
  1.13  improvement, or expansion of qualified low-income housing 
  1.14  projects are exempt from the tax imposed under this chapter if 
  1.15  the owner of the qualified low-income housing project is: 
  1.16     (1) the public housing agency or housing and redevelopment 
  1.17  authority of a political subdivision; 
  1.18     (2) an entity exercising the powers of a housing and 
  1.19  redevelopment authority within a political subdivision; 
  1.20     (3) a limited partnership in which the sole general partner 
  1.21  is an authority under clause (1) or an entity under clause (2); 
  1.22  or 
  1.23     (4) a nonprofit corporation subject to the provisions of 
  1.24  chapter 317A, and qualifying under section 501(c)(3) or 
  1.25  501(c)(4) of the Internal Revenue Code of 1986, as amended; or 
  1.26     (5) for purposes of qualified low-income housing described 
  2.1   in paragraph (b), clause (5), only, an owner entity, as defined 
  2.2   in Code of Federal Regulations, title 24, part 941.604. 
  2.3      This exemption applies regardless of whether the purchases 
  2.4   are made by the owner of the facility or a contractor.  
  2.5      (b) For purposes of this exemption, "qualified low-income 
  2.6   housing project" means: 
  2.7      (1) a housing or mixed use project in which at least 20 
  2.8   percent of the residential units are qualifying low-income 
  2.9   rental housing units as defined in section 273.126; 
  2.10     (2) a federally assisted low-income housing project 
  2.11  financed by a mortgage insured or held by the United States 
  2.12  Department of Housing and Urban Development under United States 
  2.13  Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 
  2.14  1715z-1; United States Code, title 42, section 1437f; the Native 
  2.15  American Housing Assistance and Self-Determination Act, United 
  2.16  States Code, title 25, section 4101 et seq.; or any similar 
  2.17  successor federal low-income housing program; 
  2.18     (3) a qualified low-income housing project as defined in 
  2.19  United States Code, title 26, section 42(g), meeting all of the 
  2.20  requirements for a low-income housing credit under section 42 of 
  2.21  the Internal Revenue Code regardless of whether the project 
  2.22  actually applies for or receives a low-income housing credit; or 
  2.23     (4) a project that will be operated in compliance with 
  2.24  Internal Revenue Service revenue procedure 96-32; or 
  2.25     (5) a housing or mixed-use project in which all or a 
  2.26  portion of the residential units are subject to the requirements 
  2.27  of section 5 of the United States Housing Act of 1937.  For a 
  2.28  housing or mixed-use project under this clause, the exempt 
  2.29  amount must be determined by multiplying each purchase described 
  2.30  in paragraph (a) for the project by the ratio of (1) the total 
  2.31  gross square footage of units subject to the requirements of 
  2.32  section 5 of the United States Housing Act of 1937 to (2) the 
  2.33  total gross square footage of all units in the project. 
  2.34     [EFFECTIVE DATE.] This section is effective retroactive for 
  2.35  sales and purchases made after July 31, 2001.  For sales and 
  2.36  purchases made after July 31, 2001, and before July 1, 2002, an 
  3.1   owner entity under this section may apply on a form prescribed 
  3.2   by the commissioner for a refund of the tax paid on the exempt 
  3.3   amount as determined under this section.