SF 4449

as introduced - 91st Legislature (2019 - 2020) Posted on 03/27/2020 08:41am

A bill for an act
relating to taxation; providing sales tax exemptions and grants for disaster recovery
related to properties destroyed or damaged by fire in the city of Minneapolis;
appropriating money; amending Minnesota Statutes 2018, section 297A.71, by
adding a subdivision; Minnesota Statutes 2019 Supplement, section 297A.75,
subdivision 1.

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

Section 1.

Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 53. new text end

new text begin Properties destroyed or damaged by a fire. new text end

new text begin (a) Building materials and
supplies used or consumed in, and equipment incorporated into, the construction or
replacement of real property affected by, and capital equipment to replace equipment
destroyed in, the fire on March 22, 2020, on the 2400 block of Central Avenue NE, in the
city of Minneapolis, are exempt. For purposes of this subdivision, "capital equipment"
includes durable equipment used in a restaurant for food storage, preparation, and serving.
new text end

new text begin (b) Building cleaning and disinfecting services related to mitigating smoke damage in
buildings impacted by the fire on March 22, 2020, on the 2400 block of Central Avenue
NE, in the city of Minneapolis, are exempt.
new text end

new text begin (c) 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. The
exemption under paragraph (a) applies to sales and purchases made after March 21, 2020,
and before March 26, 2023. The exemption under paragraph (b) applies to sales and purchases
made after March 21, 2020, and before January 1, 2021.
new text end

new text begin (d) This subdivision expires April 1, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies retroactively to sales and purchases made after March 21, 2020.
new text end

Sec. 2.

Minnesota Statutes 2019 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) 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 veterans with a disability 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 Minnesota Statutes 2014,
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 Minnesota Statutes 2014, section
297A.71, subdivision 46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, 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, paragraph (a), clause (1), and paragraph (b);

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

(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;

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); deleted text begin and deleted text end 51 new text begin ; and
53, paragraph (a); and cleaning services for smoke-damaged property under section 297A.71,
subdivision 53, paragraph (b) new text end ; and

(17) building materials, equipment, and supplies for qualifying capital projects under
section 297A.71, subdivision 52.

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. new text begin APPROPRIATION.
new text end

new text begin (a) $....... in fiscal year 2020 is appropriated from the general fund to the commissioner
of public safety for grants to remediate the effects of the fire on the 2400 block of Central
Avenue NE, in the city of Minneapolis, on March 22, 2020.
new text end

new text begin (b) A grant recipient may use the money appropriated under this section for remediation
costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
costs, reimbursement for equipment costs, and reimbursement for property tax abatements
incurred by public or private entities as a result of the fire. This is a onetime appropriation
and is available until June 30, 2022.
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