SF 387

as introduced - 90th Legislature (2017 - 2018) Posted on 01/27/2017 08:53am

A bill for an act
relating to taxation; providing a sales tax exemption for certain construction
materials; appropriating money; amending Minnesota Statutes 2016, sections
297A.71, by adding a subdivision; 297A.75, subdivisions 1, 2, 3.

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

Section 1.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 49. new text end

new text begin Properties destroyed by fire. new text end

new text begin (a) Building materials and supplies used in,
and equipment incorporated into, the construction or replacement of real property that is
located in Melrose affected by the fire on September 8, 2016, are exempt.
new text end

new text begin (b) For sales and purchases made after September 30, 2016, and before April 1, 2017,
the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1,
applied and then refunded in the manner provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after September 30, 2016, and before January 1, 2019, except that the refund provisions
of paragraph (b) are effective for sales and purchases made after September 30, 2016, and
before April 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, 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) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

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

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

(8) 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;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

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

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45;

(iii) a research and development facility exempt under section 297A.71, subdivision 46;
and

(iv) an industrial measurement manufacturing and controls facility exempt under section
297A.71, subdivision 47;

(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44;

(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c); deleted text begin and
deleted text end

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44 new text begin ; and
new text end

new text begin (16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 49, paragraph (b) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after September 30, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, 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), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business; deleted text begin and
deleted text end

(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
entity that owns or contracts for the project or facility new text begin ; and
new text end

new text begin (9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
building or project new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after September 30, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13), deleted text begin or deleted text end (15), new text begin and (16), new text end the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2016.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2017 only is appropriated from the general fund to the commissioner
of revenue for a grant to the city of Melrose that shall be paid by ........ This is a onetime
appropriation.
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