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Minnesota Legislature

Office of the Revisor of Statutes

SF 3066

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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; exempting cities, counties, and townships from sales tax;
amending Minnesota Statutes 2006, section 297A.70, subdivision 2.


Section 1.

Minnesota Statutes 2006, section 297A.70, subdivision 2, is amended to

Subd. 2.

Sales to government.

(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
nursing homes;

(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section 473.4051;

(5) other states or political subdivisions of other states, if the sale would be exempt
from taxation if it occurred in that state; deleted text beginand
deleted text end

(6) sales to public libraries, public library systems, multicounty, multitype library
systems as defined in section 134.001, county law libraries under chapter 134A, state
agency libraries, the state library under section 480.09, and the Legislative Reference
Librarynew text begin; and
new text end

new text begin (7) goods or services purchased by a city, county, or township, except for items
purchased for the provision of goods or services that are:
new text end

new text begin (i) generally provided by a private business; and
new text end

new text begin (ii) the purchases would be taxable if made by a private business engaged in the
same activity
new text end.

(b) This exemption does not apply to the sales of the following products and services:

(1) 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 building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5,
except for leases entered into by the United States or its agencies or instrumentalities; or

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, and soft drinks, except for lodging, prepared food, candy,
and soft drinks purchased directly by the United States or its agencies or instrumentalities.

(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section 471.59.

new text begin (d) As used in this subdivision, "goods or services generally provided by a private
business" include, but are not limited to, goods or services generally provided by
liquor stores, gas and electric utilities, golf courses, marinas, health and fitness centers,
campgrounds, cafes, and laundromats. "Goods or services generally provided by a
private business" do not include housing services, sewer and water services, wastewater
treatment, ambulance and other public safety services, correctional services, chore or
homemaking services provided to elderly or disabled individuals, or road and street
maintenance or lighting.
new text end