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Minnesota Legislature

Office of the Revisor of Statutes

SF 849

as introduced - 91st Legislature (2019 - 2020) Posted on 02/04/2019 03:23pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; providing a sales tax exemption for certain construction
materials; providing for property tax abatement; appropriating money; amending
Minnesota Statutes 2018, 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 2018, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 51. new text end

new text begin Properties destroyed by 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 11, 2018, in the city of Mazeppa are exempt. 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. 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) The exemption under this subdivision applies to sales and purchases made after
March 11, 2018, and before January 1, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 11, 2018.
new text end

Sec. 2.

Minnesota Statutes 2018, 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 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
;new text begin and
new text end

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 49; deleted text beginanddeleted text endnew text begin 50, paragraph
(b); and 51.
new text end

deleted text begin (17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).
deleted 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. 3.

Minnesota Statutes 2018, 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;

(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

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

deleted text begin (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
building or project.
deleted 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. 4.

Minnesota Statutes 2018, 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 beginordeleted text endnew text begin,new text end (15) deleted text beginto (17)deleted text endnew text begin, or (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 the day following final enactment.
new text end

Sec. 5. new text beginAPPROPRIATION.
new text end

new text begin $5,000 in fiscal year 2020 only is appropriated from the general fund to the commissioner
of revenue for a grant of $2,600 to the city of Mazeppa and a grant of $2,400 to Wabasha
County. The grants shall be paid by July 20, 2019, and may be used for property tax
abatements and other costs incurred by public and private entities as a result of a fire in the
city of Mazeppa on March 11, 2018. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end