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SF 3040

as introduced - 91st Legislature (2019 - 2020) Posted on 02/13/2020 03:02pm

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

Current Version - as introduced

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A bill for an act
relating to taxes; sales and use; providing a sales tax exemption for certain
purchases of automated storage and retrieval equipment; amending Minnesota
Statutes 2018, section 297A.68, by adding a subdivision; Minnesota Statutes 2019
Supplement, section 297A.75, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2018, section 297A.68, is amended by adding a subdivision
to read:


new text begin Subd. 46. new text end

new text begin Certain automated storage and retrieval equipment purchases. new text end

new text begin (a)
Purchases for use in a warehouse and distribution facility of an automated storage and
retrieval system are exempt if the following conditions are met:
new text end

new text begin (1) the automated storage and retrieval system is installed in a facility located in a county
in which no home rule charter or statutory city located solely in the county has a 2018
population of 2,500 or more and the county's total 2018 population is less than 16,000;
new text end

new text begin (2) the automated storage and retrieval system has a cost of at least $10,000,000; and
new text end

new text begin (3) installation of the equipment occurs after July 1, 2019, and before December 31,
2021.
new text end

new text begin (b) The tax on purchases under this subdivision must be imposed and collected as if the
rate under section 297A.61, subdivision 1, applies and then refunded in the manner provided
in section 297A.75.
new text end

new text begin (c) For purposes of this subdivision the term "automated storage and retrieval system"
means an integrated warehousing and logistical system consisting of a storage/retrieval
machine, warehouse management and control software, and associated rack structure and
extraction devices, as well as integrated ancillary systems including but not limited to
palletizers, conveyors, and case packing and handling equipment necessary for order
fulfillment.
new text end

new text begin (d) The exemption under this subdivision applies to sales and purchases made after June
30, 2019, and before December 31, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2019.
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); and 51; deleted text beginand
deleted text end

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

new text begin (18) an automated storage and retrieval system under section 297A.68, subdivision 46new 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 2019 Supplement, 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), deleted text beginanddeleted text end (15),new text begin and (18),new text end the owner of the
qualifying business;

(8) for subdivision 1, clauses (9), (10), (13), and (17), the applicant must be the
governmental entity that owns or contracts for the project or facility; and

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end