SF 3589

as introduced - 81st Legislature (1999 - 2000) 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             construction materials used for qualified low-income 
  1.4             housing projects; amending Minnesota Statutes 1998, 
  1.5             section 297A.25, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 297A.25, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 84.  [CONSTRUCTION MATERIALS FOR QUALIFIED LOW-INCOME 
  1.10  HOUSING PROJECTS.] Purchases of materials and supplies used or 
  1.11  consumed in and equipment incorporated into the construction, 
  1.12  improvement, or expansion of qualified low-income housing 
  1.13  projects are exempt from the tax imposed under this chapter if 
  1.14  the owner of the qualified low-income housing project is the 
  1.15  public housing agency or housing and redevelopment authority of 
  1.16  a political subdivision.  
  1.17     This exemption applies regardless of whether the purchases 
  1.18  are made by the owner of the facility or a contractor.  
  1.19     For purposes of this exemption, "qualified low-income 
  1.20  housing project" means: 
  1.21     (1) a housing or mixed use project in which at least 20 
  1.22  percent of the residential units are qualifying low-income 
  1.23  rental housing units as defined in section 273.126; 
  1.24     (2) a federally assisted low-income housing project 
  1.25  financed by a mortgage insured or held by the United States 
  2.1   Department of Housing and Urban Development under United States 
  2.2   Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 
  2.3   1715z-1; United States Code, title 42, section 1437f; the Native 
  2.4   American Housing Assistance and Self-Determination Act, United 
  2.5   States Code, title 25, section 4101 et seq.; or any similar 
  2.6   successor federal low-income housing program; 
  2.7      (3) a qualified low-income housing project as defined in 
  2.8   United States Code, title 26, section 42(g), meeting all of the 
  2.9   requirements for a low-income housing credit under section 42 of 
  2.10  the Internal Revenue Code of 1986 regardless of whether the 
  2.11  project actually applies for or receives a low-income housing 
  2.12  credit; or 
  2.13     (4) a project that will be operated in compliance with 
  2.14  Internal Revenue Service revenue procedure 96-32. 
  2.15     Sec. 2.  [EFFECTIVE DATE.] 
  2.16     Section 1 is effective for sales and purchases occurring 
  2.17  after June 30, 2000.