SF 2812

as introduced - 91st Legislature (2019 - 2020) Posted on 04/08/2019 02:31pm

A bill for an act
relating to taxation; sales and use; extending the exemption for governments and
nonprofits to certain psychiatric residential treatment facilities; amending Minnesota
Statutes 2018, section 297A.70, subdivision 7.

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

Section 1.

Minnesota Statutes 2018, section 297A.70, subdivision 7, is amended to read:

Subd. 7.

Hospitals, outpatient surgical centers, deleted text begin and deleted text end critical access dental providers new text begin ,
and psychiatric residential treatment facilities new text end .

(a) Sales, except for those listed in
paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to a hospital are exempt, if the items purchased are used in providing
hospital services. For purposes of this subdivision, "hospital" means a hospital organized
and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
Revenue Code, and licensed under chapter 144 or by any other jurisdiction, and "hospital
services" are services authorized or required to be performed by a "hospital" under chapter
144.

(b) Sales, except for those listed in paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to an outpatient surgical center are
exempt, if the items purchased are used in providing outpatient surgical services. For purposes
of this subdivision, "outpatient surgical center" means an outpatient surgical center organized
and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes
of this subdivision, "outpatient surgical services" means: (1) services authorized or required
to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For
purposes of this subdivision, "urgent care" means health services furnished to a person
whose medical condition is sufficiently acute to require treatment unavailable through, or
inappropriate to be provided by, a clinic or physician's office, but not so acute as to require
treatment in a hospital emergency room.

(c) Sales, except for those listed in paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to a critical access dental provider
are exempt, if the items purchased are used in providing critical access dental care services.
For the purposes of this subdivision, "critical access dental provider" means a dentist or
dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the
previous calendar year, had no more than 15 percent of its patients covered by private dental
insurance.

new text begin (d) Sales, except for those listed in paragraph (e), to a psychiatric residential treatment
facility are exempt if the items purchased are used in providing psychiatric residential
treatment services. For the purposes of this subdivision, "psychiatric residential treatment
facility" means a federally certified psychiatric residential treatment facility for persons
younger than 21 years of age organized and operated for charitable purposes within the
meaning of section 501(c)(3) of the Internal Revenue Code and licensed under chapter
245A. For the purpose of this subdivision, "psychiatric residential treatment services" means
services authorized or required to be provided under section 256B.0625, subdivision 45a.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital, outpatient surgical center, deleted text begin or deleted text end critical access dental provider, new text begin or
psychiatric residential treatment facility, new text end even though the clinic, office, or facility may be
owned and operated by a hospital, outpatient surgical center, or critical access dental provider;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared
food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities that
will not be used principally by the hospital, outpatient surgical center, or critical access
dental provider;

(4) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a hospital, outpatient surgical center, deleted text begin or deleted text end critical access dental provider new text begin , or psychiatric
residential treatment facility new text end ; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.

deleted text begin (e) deleted text end new text begin (f) new text end A limited liability company also qualifies for exemption under this subdivision
if (1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

deleted text begin (f) deleted text end new text begin (g) new text end An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:

(1) the nonprofit unit would have qualified for exemption under subdivision 4; and

(2) the items purchased would have qualified for the exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2019.
new text end