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HF 3594

as introduced - 89th Legislature (2015 - 2016) Posted on 03/24/2016 02:26pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/24/2016

Current Version - as introduced

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A bill for an act
relating to taxation; eliminating income and business taxes and replacing the
sales tax with a fair tax; amending Minnesota Statutes 2014, sections 297A.61,
subdivisions 2, 7, 24; 297A.62, subdivisions 1, 1a; 297A.63, by adding a
subdivision; 297A.66, subdivision 3; proposing coding for new law in Minnesota
Statutes, chapter 297A; repealing Minnesota Statutes 2014, sections 290.01,
subdivisions 1, 1a, 2, 3, 3a, 3b, 4, 4a, 4c, 5, 5a, 5b, 6, 7, 7a, 7b, 8, 8a, 9, 10, 11,
12, 13, 14, 15, 16, 17, 18, 19a, 19b, 19c, 19d, 19f, 19h, 20, 22, 29, 29a, 30;
290.014; 290.015; 290.02; 290.03; 290.032, subdivisions 1, 2, 3; 290.04; 290.05,
subdivisions 1, 2, 3, 4, 8; 290.06, subdivisions 1, 2c, 2d, 22, 23, 27, 28, 29, 33,
35, 36; 290.067, subdivisions 1, 2, 2a, 2b, 3, 4; 290.0671, subdivisions 1a, 2, 4,
5, 6, 7; 290.0672; 290.0674, subdivisions 1, 2, 4, 5; 290.0675, subdivisions 1, 2,
3, 4; 290.0677; 290.0679; 290.068, subdivisions 1, 2, 3, 4, 5, 6a, 7; 290.0681;
290.0692; 290.07, subdivisions 1, 2, 4, 7; 290.0802; 290.081; 290.091; 290.0921,
subdivisions 1, 2, 3, 3a, 4, 6, 8; 290.0922; 290.093; 290.095, subdivisions 1, 2,
3, 4, 5, 9, 11; 290.10; 290.17, subdivisions 1, 2, 3, 4, 5, 6; 290.172; 290.191,
subdivisions 1, 2, 3, 5, 6, 8, 9, 10, 11, 12; 290.20; 290.21, subdivisions 1,
4; 290.22; 290.26, subdivision 6; 290.281, subdivision 1; 290.30; 290.31,
subdivisions 1, 27; 290.311, subdivision 1; 290.32; 290.34, subdivisions 1, 2;
290.36; 290.371, subdivisions 1, 2, 3, 4; 290.431; 290.432; 290.48, subdivision
10; 290.491; 290.62; 290.92, subdivisions 1, 2a, 3, 4, 4a, 4b, 4c, 5, 5a, 9, 10, 12,
16, 17, 19, 20, 21, 24, 25, 26, 27, 28, 29, 30; 290.9201, subdivisions 1, 2, 6, 7, 8,
11; 290.923, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, 11; 290.9705, subdivisions 1,
3, 4; 290.9725; 290.9726, subdivisions 1, 2, 4; 290.9727; 290.9728; 290.9729;
290.9741; 290.9742; 290.9743; 290.9744; 297A.61, subdivisions 3, 4, 10, 12,
13, 16a, 16b, 16c, 17, 17a, 17b, 18, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40,
41, 42, 44, 45, 46, 49; 297A.62, subdivision 3; 297A.63, subdivision 2; 297A.64,
subdivisions 1, 2, 3, 4, 5; 297A.65; 297A.67, subdivisions 2, 3, 4, 5, 6, 7, 7a, 8,
9, 10, 11, 12, 13a, 14, 15, 16, 17, 18, 19, 20, 21, 23, 25, 26, 27, 28, 29, 31, 32;
297A.68, subdivisions 1, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 19, 20, 22,
23, 24, 25, 28, 29, 30, 31, 32, 33, 34, 35a, 36, 37, 39, 40, 42, 43, 44; 297A.69,
subdivisions 1, 2, 3, 4, 6, 7; 297A.70, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 9a, 10,
11, 12, 13, 14, 15, 16, 17, 18, 19; 297A.71, subdivisions 1, 3, 6, 8, 11, 12, 13,
14, 22, 23, 34, 35, 40, 42, 43, 44, 45, 46, 47, 48; 297A.75; 297D.01; 297D.02;
297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09;
297D.10; 297D.11; 297D.12; 297D.13; 297F.01; 297F.02; 297F.03; 297F.031;
297F.04; 297F.05; 297F.06; 297F.07; 297F.08, subdivisions 1, 2, 3, 4, 5, 6, 7,
8, 8a, 9, 10, 12, 13; 297F.09, subdivisions 1, 2, 3, 4, 4a, 5, 7, 8, 9, 10; 297F.10;
297F.11; 297F.12; 297F.13; 297F.14; 297F.15, subdivisions 9, 10; 297F.17;
297F.18; 297F.185; 297F.19, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 297F.20; 297F.21,
subdivisions 1, 2, 3; 297F.23; 297F.24; 297F.25; 297G.01; 297G.02; 297G.03;
297G.031; 297G.032; 297G.04; 297G.05; 297G.06; 297G.07; 297G.08;
297G.09, subdivisions 1, 2, 3, 4, 6, 7, 8, 9, 10; 297G.10; 297G.11; 297G.12;
297G.13; 297G.14, subdivision 9; 297G.16; 297G.17; 297G.18, subdivisions 1,
2, 3, 5, 6, 7, 8, 9, 10, 11; 297G.19; 297G.20, subdivisions 1, 2, 3, 4; 297G.22;
297H.01; 297H.02; 297H.03; 297H.04; 297H.05; 297H.06; 297H.07; 297H.08;
297H.09; 297H.10, subdivision 1; 297H.11; 297H.115; 297H.12; 297H.13,
subdivisions 1, 2, 5; 297I.01; 297I.05, subdivisions 1, 2, 3, 4, 5, 7, 11, 12,
13, 14; 297I.06; 297I.10, subdivisions 1, 3, 4; 297I.11; 297I.15; 297I.20;
297I.25; 297I.30, subdivisions 1, 2, 7, 8, 9, 10; 297I.35; 297I.40; 297I.60;
297I.65; 297I.70; 297I.75; 297I.80; 297I.85; 297I.90; Minnesota Statutes 2015
Supplement, sections 290.01, subdivisions 19, 31; 290.0671, subdivisions 1, 6a;
297A.67, subdivision 13; 297A.68, subdivisions 2, 5; 297A.70, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 297A.61, subdivision 2, is amended to read:


Subd. 2.

Person.

(a) "Person" new text beginmeans any natural person, and new text endincludes any
individual or group and any combination of individuals, groups, or individuals and
groups acting as a unit.

(b) Personnew text begin alsonew text end includesnew text begin, unless the context clearly does not allow it,new text end a firm,
partnership, joint venture, limited liability company, association, cooperative, social club,
fraternal organization, municipal or private corporation whether or not organized for
profit, estate, trust, business trust, receiver, trustee, syndicate, the United States, and a
state and its political subdivisions.

(c) Person includes, but is not limited to, directors and officers of corporations,
governors and managers of a limited liability company, or members of partnerships who,
either individually or jointly with others, have the control, supervision, or responsibility of
filing returns and making payment of the amount of tax imposed by this chapter.

(d) Person includes any agent or consignee of any individual or organization listed
in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.61, subdivision 7, is amended to read:


Subd. 7.

Sales price.

(a) "Sales price" means the measure subject to sales tax, and
means the total amount of consideration, including cash, credit, personal property, and
services, for which personal property or services are sold, leased, or rented, valued in
money, whether received in money or otherwise, without any deduction for the following:

(1) the seller's cost of the property sold;

(2) the cost of materials used, labor or service cost, interest, losses, all costs of
transportation to the seller, all taxes imposed on the seller, and any other expenses of
the seller;

(3) charges by the seller for any services necessary to complete the sale, other than
delivery and installation charges;

(4) delivery charges, except the percentage of the delivery charge allocated to
delivery of tax exempt property, when the delivery charge is allocated by using either (i) a
percentage based on the total sales price of the taxable property compared to the total sales
price of all property in the shipment, or (ii) a percentage based on the total weight of the
taxable property compared to the total weight of all property in the shipment; and

(5) installation charges.

(b) Sales price does not include:

(1) discounts, including cash, terms, or coupons, that are not reimbursed by a third
party and that are allowed by the seller and taken by a purchaser on a sale;new text begin and
new text end

deleted text begin (2) interest, financing, and carrying charges from credit extended on the sale of
personal property or services, if the amount is separately stated on the invoice, bill of sale,
or similar document given to the purchaser; and
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end any taxes legally imposed directly on the consumer that are separately stated
on the invoice, bill of sale, or similar document given to the purchaser.

(c) Sales price includes consideration received by the seller from third parties if:

(1) the seller actually receives consideration from a party other than the purchaser
and the consideration is directly related to a price reduction or discount on the sale;

(2) the seller has an obligation to pass the price reduction or discount through to
the purchaser;

(3) the amount of the consideration attributable to the sale is fixed and determinable
by the seller at the time of the sale of the item to the purchaser; and

(4) one of the following criteria is met:

(i) the purchaser presents a coupon, certificate, or other documentation to the seller
to claim a price reduction or discount when the coupon, certificate, or documentation is
authorized, distributed, or granted by a third party with the understanding that the third party
will reimburse any seller to whom the coupon, certificate, or documentation is presented;

(ii) the purchaser identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount. A "preferred customer" card that is
available to any customer does not constitute membership in such a group; or

(iii) the price reduction or discount is identified as a third-party price reduction or
discount on the invoice received by the purchaser or on a coupon, certificate, or other
documentation presented by the purchaser.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 3.

Minnesota Statutes 2014, section 297A.61, subdivision 24, is amended to read:


Subd. 24.

Telecommunications services.

(a) "Telecommunications services" means
the electronic transmission, conveyance, or routing of voice, data, audio, video, or any
other information or signals to a point, or between or among points.

(b) Telecommunications services include transmission, conveyance, or routing in
which computer processing applications are used to act on the form, code, or protocol
of the content for purposes of transmission, conveyance, or routing, without regard to
whether the service is referred to as Voice over Internet Protocol services or is classified
by the Federal Communications Commission as enhanced or value added.

(c) Telecommunications services do not includedeleted text begin:
deleted text end

deleted text begin (1) data processing and information services that allow data to be generated,
acquired, stored, processed, or retrieved and delivered by an electronic transmission to
a purchaser when the purchaser's primary purpose for the underlying transaction is the
processed data or information;
deleted text end

deleted text begin (2) installation or maintenance of wiring or equipment on a customer's premises;
deleted text end

deleted text begin (3) tangible personal property;
deleted text end

deleted text begin (4) advertising, including, but not limited to, directory advertising;
deleted text end

deleted text begin (5) billing and collection services provided to third parties;
deleted text end

deleted text begin (6) Internet access service;
deleted text end

deleted text begin (7) radio and television audio and video programming services, regardless of the
medium, including the furnishing of transmission, conveyance, and routing of such
services by the programming service provider. Radio and television audio and video
programming services includes, but is not limited to, cable service as defined in United
States Code, title 47, section 522(6), and audio and video programming services delivered
by commercial mobile radio service providers, as defined in Code of Federal Regulations,
title 47, section 20.3;
deleted text end

deleted text begin (8) ancillary services; or
deleted text end

deleted text begin (9)deleted text end digital products delivered electronically, including, but not limited to, software,
music, video, reading materials, or ring tones.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 4.

new text begin [297A.611] ADDITIONAL FAIR TAX DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The following words, terms, and phrases when used
in this chapter have the meanings given them in this section, unless the context clearly
indicates a different meaning.
new text end

new text begin Subd. 2. new text end

new text begin Fair tax. new text end

new text begin "Fair tax" means the sales and use tax imposed under this chapter
and incorporated into the gross sales price of all taxable property and taxable services.
new text end

new text begin Subd. 3. new text end

new text begin Basic interest rate. new text end

new text begin "Basic interest rate" means:
new text end

new text begin (1) in the case of a debt instrument, investment, financing lease, or account with a
term of not over three years, the applicable interest rate is a short-term rate based on the
average market yield during any one month on outstanding marketable obligations of the
United States with remaining periods to maturity of three years or fewer;
new text end

new text begin (2) in the case of a debt instrument, investment, financing lease, or account with a
term of over three years but not over nine years, the applicable interest rate is a mid-term
rate based on the average market yield during any one month on outstanding marketable
obligations of the United States with remaining periods to maturity of more than three
years but not over nine years; or
new text end

new text begin (3) in the case of a debt instrument, investment, financing lease, or account with a
term over nine years, the applicable interest rate is a long-term rate based on the average
market yield during any one month on outstanding marketable obligations of the United
States with remaining periods to maturity of over nine years.
new text end

new text begin Subd. 4. new text end

new text begin Business purpose. new text end

new text begin "Business purpose" means a purchase made by a
person engaged in a trade or business and used in that trade or business for resale, to
produce, provide, render, or sell taxable property or taxable services, or in furtherance of
other bona fide business purposes.
new text end

new text begin Subd. 5. new text end

new text begin Business use conversion. new text end

new text begin "Business use conversion" means the use of
taxable property or taxable services upon which tax was imposed and actually paid that
commenced to be 95 percent or more used for business purposes.
new text end

new text begin Subd. 6. new text end

new text begin Dependent. new text end

new text begin (a) "Dependent" means a resident of this state with a valid
Social Security number who is:
new text end

new text begin (1) under the age of 18 and is not a legally emancipated minor; or
new text end

new text begin (2) 18 years of age or older and a registered student during not fewer than five
months in a calendar year who receives over 50 percent of their support during a calendar
year from a family member or legal guardian, regardless of whether the individual lives in
a common residence with a qualified family.
new text end

new text begin (b) For purposes of this subdivision "legally emancipated minor" means a person
under the age of 18 years who:
new text end

new text begin (1) has been married;
new text end

new text begin (2) is on active duty in the uniformed services of the United States;
new text end

new text begin (3) has been emancipated by a court of competent jurisdiction; or
new text end

new text begin (4) is otherwise considered emancipated under Minnesota law, and for whom
county social services has not determined that a social services case plan is necessary,
for reasons other than the child has failed or refuses to cooperate with the county agency
in developing the plan, and a child living on their own pursuant to section 260C.201,
subdivision 1, paragraph (a), clause (5).
new text end

new text begin (c) For purposes of this subdivision, a dependent whose parents are divorced or legally
separated is treated as a dependent of the custodial parent, and in cases of joint custody,
the custodial parent is the parent that has custody of the child for more than one-half of the
time during a given calendar year. A parent entitled to be treated as the custodial parent
under this paragraph may release the claim to the other parent if the release is in writing.
new text end

new text begin Subd. 7. new text end

new text begin Education and training costs. new text end

new text begin "Education and training costs" includes
tuition for primary, secondary, or postsecondary level education, and job-related training
courses. Education and training does not include costs for room, board, sports activities,
recreational activities, hobbies, games, arts or crafts, or cultural activities.
new text end

new text begin Subd. 8. new text end

new text begin Explicitly charged fees. new text end

new text begin "Explicitly charged fees" means:
new text end

new text begin (1) brokerage fees;
new text end

new text begin (2) explicitly stated banking, loan origination, processing, documentation, credit
check fees, or other similar fees;
new text end

new text begin (3) safe deposit box fees;
new text end

new text begin (4) trustees' fees; and
new text end

new text begin (5) other financial services fees, including mutual fund management, sales, and
exit fees.
new text end

new text begin Subd. 9. new text end

new text begin Financial intermediation services. new text end

new text begin The value of "financial intermediation
services" means the sum of:
new text end

new text begin (1) explicitly charged fees for financial intermediation services; and
new text end

new text begin (2) implicitly charged fees for financial intermediation services.
new text end

new text begin Subd. 10. new text end

new text begin Government enterprise. new text end

new text begin "Government enterprise" means an entity owned
and operated by a federal, state, or local governmental unit or political subdivision that
receives gross payments from private persons, provided that in any quarter in the calendar
year it has revenues from selling taxable property or taxable services that exceed $2,500.
new text end

new text begin Subd. 11. new text end

new text begin Gross imputed amount. new text end

new text begin "Gross imputed amount" means:
new text end

new text begin (1) with respect to any underlying interest-bearing investment or account, the
product of:
new text end

new text begin (i) the excess of the basic interest rate over the rate paid on the investment; and
new text end

new text begin (ii) the amount of the investment or account; or
new text end

new text begin (2) with respect to any underlying interest-bearing debt, the product of:
new text end

new text begin (i) the excess of the rate paid on the debt over the basic interest rate; and
new text end

new text begin (ii) the amount of the debt.
new text end

new text begin Subd. 12. new text end

new text begin Gross payment. new text end

new text begin "Gross payment" means the total amount charged for
taxable property and taxable services, including the taxes imposed under this chapter.
new text end

new text begin Subd. 13. new text end

new text begin Implicitly charged fees. new text end

new text begin "Implicitly charged fees" means the gross
imputed amount in relation to any underlying interest-bearing investment, account, or debt.
new text end

new text begin Subd. 14. new text end

new text begin Intangible property. new text end

new text begin "Intangible property" includes copyrights,
trademarks, patents, goodwill, financial instruments, securities, commercial paper, debts,
notes and bonds, and other property deemed intangible under state law. Intangible
property does not include tangible personal property or rents or a leasehold of any term
on the tangible personal property, real property or rents or leaseholds of any term on
the real property, or computer software.
new text end

new text begin Subd. 15. new text end

new text begin Investment purpose. new text end

new text begin "Investment purpose" means the purchase of
property exclusively for the purpose of appreciation or the production of income but not
entailing more than minor personal efforts.
new text end

new text begin Subd. 16. new text end

new text begin Mixed-use property. new text end

new text begin "Mixed-use property" means a taxable property or
taxable service used for both taxable use or consumption and for a business purpose.
new text end

new text begin Subd. 17. new text end

new text begin Net payment. new text end

new text begin "Net payment" means the total amount charged for taxable
property or taxable services, excluding the taxes imposed under this chapter.
new text end

new text begin Subd. 18. new text end

new text begin Nonprofit organization. new text end

new text begin "Nonprofit organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c) of the Internal Revenue Code.
new text end

new text begin Subd. 19. new text end

new text begin Produce, provide, render, or sell taxable property or taxable services.
new text end

new text begin "Produce, provide, render, or sell taxable property or taxable services" includes the
following:
new text end

new text begin (1) a taxable property or taxable service is used to produce, provide, render, or sell
a taxable property or taxable service if the property or service is purchased by a person
engaged in a trade or business for the purpose of employing or using the taxable property
or taxable service in the production, provision, rendering, or sale of other taxable property
or taxable services in the ordinary course of that trade or business;
new text end

new text begin (2) taxable property or taxable services used in a trade or business for the purpose of
research, experimentation, testing, and development is treated as used to produce, provide,
render, or sell taxable property or taxable services;
new text end

new text begin (3) taxable property or taxable services purchased by an insurer on behalf of an
insured is treated as used to produce, provide, render, or sell taxable property or taxable
services if the premium for the insurance contract giving rise to the insurer's obligation
was subject to tax on financial intermediation services under this chapter; and
new text end

new text begin (4) education and training are treated as services used to produce, provide, render, or
sell taxable property or taxable services.
new text end

new text begin Subd. 20. new text end

new text begin Qualified family. new text end

new text begin "Qualified family" consists of the following persons
sharing a common residence:
new text end

new text begin (1) a qualified individual;
new text end

new text begin (2) the qualified individual's spouse; and
new text end

new text begin (3) all dependents of either the qualified individual, their spouse, or both the
qualified individual and their spouse, including dependents that are students living away
from the common residence for part of the year.
new text end

new text begin Subd. 21. new text end

new text begin Qualified individual. new text end

new text begin "Qualified individual" means a resident of this state
with a valid Social Security number who does not meet the definition of dependent.
new text end

new text begin Subd. 22. new text end

new text begin Taxable employer. new text end

new text begin (a) "Taxable employer" includes, but is not limited to,
the following:
new text end

new text begin (1) any household employing domestic servants; and
new text end

new text begin (2) any government except for government enterprises.
new text end

new text begin (b) Taxable employer does not include any employer that is:
new text end

new text begin (1) engaged in a trade or business;
new text end

new text begin (2) a nonprofit organization; or
new text end

new text begin (3) a government enterprise.
new text end

new text begin Taxable employer does not include the federal government or its agencies, until such time
as federal law allows state taxation of the federal government.
new text end

new text begin Subd. 23. new text end

new text begin Taxable property; taxable service. new text end

new text begin (a) "Taxable property" means any
tangible personal property and all digital products including, but not limited to, the
following:
new text end

new text begin (1) property purchased for business use but subsequently converted to personal use,
which is subject to the tax imposed by this section at the fair market value of the converted
property as of the date of conversion;
new text end

new text begin (2) leaseholds of any term;
new text end

new text begin (3) rents with respect to the property;
new text end

new text begin (4) property exchanged in barter transactions, which must be taxed as if the
transaction was made in cash; and
new text end

new text begin (5) mixed-use property, to the extent the property is used for a personal and not
a business purpose.
new text end

new text begin (b) "Taxable service" means any service, including any financial intermediation
service, any service performed by an employee for which the employee is paid wages by a
taxable employer, but shall not include any service performed by an employee for which
the employee is paid wages by:
new text end

new text begin (1) an employer in the regular course of the employer's trade or business;
new text end

new text begin (2) an employer that is a nonprofit organization;
new text end

new text begin (3) an employer that is a government enterprise; or
new text end

new text begin (4) taxable employers to employees directly providing education and training.
new text end

new text begin (c) Taxable property and taxable service do not include any intangible property
or used property or property held exclusively for an investment purpose, or any state
government functions that do not constitute the final consumption of property or services.
new text end

new text begin (d) Taxable property and taxable service include sales of property or services by a
nonprofit organization for fund-raising purposes.
new text end

new text begin Subd. 24. new text end

new text begin Used property. new text end

new text begin "Used property" means property for which the tax under
this chapter has been collected and for which no credit has been allowed, or property that
was held other than for a business purpose on December 31, 2013.
new text end

new text begin Subd. 25. new text end

new text begin Wages. new text end

new text begin "Wages" means all compensation paid for employment service
including salaries, cash compensation, employee benefits, disability insurance, wage
replacement insurance payments, unemployment compensation insurance, workers'
compensation insurance, and the fair market value of any other consideration paid by an
employer to an employee in consideration for employment services rendered.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 5.

Minnesota Statutes 2014, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

Generally.

Except as otherwise provided in deleted text beginsubdivision 3 or indeleted text end this
chapter, a sales tax deleted text beginof 6.5 percentdeleted text endnew text begin at the rate calculated under section 13new text end is imposed on deleted text beginthe
gross receipts from retail sales as defined in section 297A.61, subdivision 4,
deleted text endnew text begin net payments
on the production, provision, rendering, or selling of taxable property or taxable services
new text end
made in this state or to a destination in this state by a person who is required to have or
voluntarily obtains a permit under section 297A.83, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 6.

Minnesota Statutes 2014, section 297A.62, subdivision 1a, is amended to read:


Subd. 1a.

Constitutionally required sales tax increase.

Except as otherwise
provided in deleted text beginsubdivision 3 or indeleted text end this chapter, an additional sales tax of 0.375 percent,
new text beginadjusted as determined under section 13 new text endas required under the Minnesota Constitution,
article XI, section 15, is imposed on the deleted text begingross receipts from retail sales as defined in
section 297A.61, subdivision 4,
deleted text endnew text begin net payments on the production, provision, rendering, or
selling of taxable property or taxable services
new text end made in this state or to a destination in this
state by a person who is required to have or voluntarily obtains a permit under section
297A.83, subdivision 1. This additional tax expires July 1, 2034.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 7.

new text begin [297A.625] PROHIBITION ON CERTAIN TAXES; IMPOSITION OF
THE FAIR TAX.
new text end

new text begin (a) For taxable years beginning after December 31, 2017, imposition of the
following taxes are prohibited:
new text end

new text begin (1) individual income and corporate franchise taxes;
new text end

new text begin (2) insurance taxes;
new text end

new text begin (3) occupation taxes; and
new text end

new text begin (4) sales, excise, and gross receipts taxes other than the taxes under this chapter and
chapters 296A and 297B.
new text end

new text begin (b) For taxable years beginning after December 31, 2017, all revenues lost as a result
of the repeal of the taxes under paragraph (a) shall be replaced by the levy and imposition
of a sales tax upon all final use or consumption of taxable property or taxable services
in this state. The sales tax under this chapter shall be renamed the "fair tax" and the
rates under section 297A.62 shall be modified to the rates determined under section 13.
The fair tax shall be incorporated into the gross payment and sales price for all taxable
goods and services.
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

Sec. 8.

Minnesota Statutes 2014, section 297A.63, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Conversion of business purchases to personal use. new text end

new text begin Use tax is owed on
property and services purchased exempt from the tax under this chapter as a purchase for
business use that is subsequently used more than five percent for personal use. The tax is
owed on the value of the property or service at the time of conversion. This includes the
conversion of housing from rental or other business property to personal use by the owner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 9.

Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read:


Subd. 3.

Retailer not maintaining place of business in this state.

(a) To the
extent allowed by the United States Constitution and in accordance with the terms and
conditions of federal remote seller law, a retailer making retail sales from outside this state
to a destination within this state and not maintaining a place of business in this state shall
collect sales and use taxes and remit them to the commissioner under section 297A.77.

deleted text begin (b) To the extent allowed by the United States Constitution and the laws of the
United States, a retailer making retail sales from outside this state to a destination within
this state and not maintaining a place of business in this state shall collect sales and use
taxes and remit them to the commissioner under section 297A.77, if the retailer engages in
the regular or systematic soliciting of sales from potential customers in this state by:
deleted text end

deleted text begin (1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or
other written solicitations of business to customers in this state;
deleted text end

deleted text begin (2) display of advertisements on billboards or other outdoor advertising in this state;
deleted text end

deleted text begin (3) advertisements in newspapers published in this state;
deleted text end

deleted text begin (4) advertisements in trade journals or other periodicals the circulation of which is
primarily within this state;
deleted text end

deleted text begin (5) advertisements in a Minnesota edition of a national or regional publication or
a limited regional edition in which this state is included as part of a broader regional or
national publication which are not placed in other geographically defined editions of the
same issue of the same publication;
deleted text end

deleted text begin (6) advertisements in regional or national publications in an edition which is not
by its contents geographically targeted to Minnesota but which is sold over the counter
in Minnesota or by subscription to Minnesota residents;
deleted text end

deleted text begin (7) advertisements broadcast on a radio or television station located in Minnesota; or
deleted text end

deleted text begin (8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
microwave, or other communication system.
deleted text end

deleted text begin This paragraph must be construed without regard to the state from which distribution
of the materials originated or in which they were prepared.
deleted text end

deleted text begin (c) The location within or without this state of independent vendors that provide
products or services to the retailer in connection with its solicitation of customers within this
state, including such products and services as creation of copy, printing, distribution, and
recording, is not considered in determining whether the retailer is required to collect tax.
deleted text end

deleted text begin (d) A retailer not maintaining a place of business in this state is presumed, subject to
rebuttal, to be engaged in regular solicitation within this state if it engages in any of the
activities in paragraph (b) and:
deleted text end

deleted text begin (1) makes 100 or more retail sales from outside this state to destinations in this state
during a period of 12 consecutive months; or
deleted text end

deleted text begin (2) makes ten or more retail sales totaling more than $100,000 from outside this state
to destinations in this state during a period of 12 consecutive months.
deleted text end

new text begin (b) A retailer that is not subject to paragraph (a) that does not maintain a place of
business in this state but made taxable sales of at least $1,000,000 in the previous year
from outside this state to destinations within this state shall collect sales and use taxes but
shall be compensated for the administrative costs related to the collection and remittance
of the sales tax. The commissioner shall, after reviewing the recommendations of the
advisory task force established in section 12, develop a method for calculating and paying
the compensation required under this paragraph. If a retailer subject to this paragraph and
the commissioner are unable to agree on the method for calculating compensation and
the retailer demands arbitration, the matter must be submitted to binding arbitration in
accordance with chapter 572B, and the rules of the American Arbitration Association.
Retailers subject to this paragraph may choose to combine into a single group and jointly
request that their objections be combined and dealt with in a single arbitration. Within 30
days after the demand for arbitration, the parties shall each select an arbitrator or agree
upon a single arbitrator. If the parties each select an arbitrator, the two arbitrators shall
select a third arbitrator within 45 days after the demand for arbitration. Each party shall
pay the fees and expenses of the arbitrator it selected and the parties shall share equally
the expenses of the third arbitrator or an arbitrator agreed upon mutually by the parties.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 10.

new text begin [297A.712] EXEMPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The net payments from the sale, storage, distribution, use,
or consumption of the taxable property and taxable services contained in this section are
specifically exempted from the taxes imposed under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Purchased for a business purpose. new text end

new text begin Taxable property or taxable services
purchased by a person engaged in a trade or business are exempt if used in that trade or
business:
new text end

new text begin (1) for resale;
new text end

new text begin (2) to produce, provide, render, or sell taxable property or taxable services; or
new text end

new text begin (3) in furtherance of other bona fide business purposes.
new text end

new text begin Subd. 3. new text end

new text begin Purchased for use outside of the state. new text end

new text begin Taxable property or taxable
services purchased for export from Minnesota for use or consumption outside of the
state are exempt.
new text end

new text begin Subd. 4. new text end

new text begin Purchased for an investment purpose. new text end

new text begin Taxable property purchased
exclusively for appreciation or the production of income with minor personal effort are
exempt.
new text end

new text begin Subd. 5. new text end

new text begin Purchases by a government enterprise. new text end

new text begin Taxable property and taxable
services purchased by a government enterprise are exempt.
new text end

new text begin Subd. 6. new text end

new text begin Education costs. new text end

new text begin Education and training costs paid to an accredited
institution of higher education are exempt. Tuition paid to an accredited elementary school
or secondary school program is also exempt.
new text end

new text begin Subd. 7. new text end

new text begin Petroleum and other fuels. new text end

new text begin Purchases of petroleum and other fuels subject
to the tax under chapter 296A are exempt.
new text end

new text begin Subd. 8. new text end

new text begin Purchases by and goods and services provided by certain nonprofit
organizations.
new text end

new text begin (a) Taxable property and taxable services purchased by a qualifying
nonprofit organization are exempt if used for the purposes allowed for that nonprofit
under this subdivision.
new text end

new text begin (b) Taxable property and taxable services provided to others by a qualifying
nonprofit organization are exempt if used for the purposes allowed for that nonprofit
organization under this subdivision.
new text end

new text begin (c) For purposes of this subdivision "qualifying nonprofit organization" means
one of the following:
new text end

new text begin (1) a corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or education purposes, including the
maintenance of a cemetery owned by a religious organization;
new text end

new text begin (2) any senior citizen group or association of groups that:
new text end

new text begin (i) in general limits membership to persons who are either age 55 or older, or
physically disabled;
new text end

new text begin (ii) is organized and operated exclusively for pleasure, recreation, and other
nonprofit purposes, not including housing, no part of the net earnings of which inures to
the benefit of any private shareholders; and
new text end

new text begin (iii) is an exempt organization under section 501(c) of the Internal Revenue Code;
new text end

new text begin (3) an organization of military service veterans or an auxiliary unit of an organization
of military service veterans are exempt if:
new text end

new text begin (i) the organization or auxiliary unit is organized within Minnesota and is exempt
from federal taxation under section 501(c), clause (19), of the Internal Revenue Code; and
new text end

new text begin (ii) the tangible personal property or services are purchased for charitable, civic,
educational, or nonprofit uses and not for social, recreational, pleasure, or profit uses; and
new text end

new text begin (4) a nonprofit organization that exists solely for the purpose of providing
educational or social activities for young people primarily age 18 and under.
new text end

new text begin Subd. 9. new text end

new text begin Purchase by the federal government. new text end

new text begin Taxable property and taxable
services purchased by the United States and its agencies and instrumentalities are exempt.
Any state or local government purchases made with funds received from the federal
government are also exempt to the extent required under federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 11.

new text begin [297A.755] CREDITS AND REFUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) Each person shall be allowed a credit with respect to
the taxes imposed under this chapter for each month equal to the sum of:
new text end

new text begin (1) the business use conversion credit under subdivision 2;
new text end

new text begin (2) the intermediate and export sales credit under subdivision 3;
new text end

new text begin (4) the insurance proceeds credit under subdivision 4;
new text end

new text begin (5) the bad debt credit under section 297A.81; or
new text end

new text begin (6) any amount paid in excess of the amount due.
new text end

new text begin (b) Only one credit paid may be taken with respect to the sale or purchase of any
particular taxable property or taxable service.
new text end

new text begin (c) Each qualified person shall be paid a monthly sales tax rebate, as determined
under section 14.
new text end

new text begin Subd. 2. new text end

new text begin Business use conversion credit. new text end

new text begin A person is eligible for a credit for
the fair tax paid on taxable property and taxable services if the property or service is
subsequently used at least 95 percent for business purposes. The credit is equal to the tax
included in the gross payment on the taxable property or taxable service.
new text end

new text begin Subd. 3. new text end

new text begin Intermediate and export credit. new text end

new text begin A person is eligible for a credit for the
fair tax paid on the purchase of any taxable property or taxable service purchased for a
business purpose in a trade or business or exported from the state for use or consumption
outside of the state.
new text end

new text begin Subd. 4. new text end

new text begin Insurance proceeds credit. new text end

new text begin (a) Any person receiving a payment from an
insurer by virtue of an insurance contract, if the insurance premium is subject to the tax
under this chapter, shall be entitled to a credit in an amount equal to the product of the tax
rates imposed under section 297A.62 and the amount of the payment made by the insurer,
adjusted as required in paragraphs (b) and (c). For purposes of this section, "insurance
contract" shall include the following insurance contracts:
new text end

new text begin (1) life;
new text end

new text begin (2) health;
new text end

new text begin (3) property and casualty loss;
new text end

new text begin (4) general liability;
new text end

new text begin (5) marine;
new text end

new text begin (6) fire;
new text end

new text begin (7) accident;
new text end

new text begin (8) disability;
new text end

new text begin (9) long-term care; or
new text end

new text begin (10) any combination of clauses (1) to (9).
new text end

new text begin (b) The credit under paragraph (a) shall be paid by the insurer to the insured and the
insurer shall be entitled to the credit in lieu of the insured, except that the insurer may
elect, in a form prescribed by the commissioner, to not pay the credit and require the
insured to apply for the credit. In the event of such election, the insurer must provide the
commissioner and the insured the name and tax identification number of the insurer and of
the insured and indicate the proper amount of the credit.
new text end

new text begin (c) If taxable property or taxable services purchased by an insurer on behalf of the
insured are purchased free of tax as a purchase for use in a trade or business, then the
credit is not available for that purchase.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2018.
new text end

Sec. 12. new text beginFAIR TAX LEGISLATION; ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Proposed legislation. new text end

new text begin No later than February 1, 2017, the
commissioner of revenue shall submit legislation to the chairs and ranking minority
members of the legislative committees having jurisdiction over taxes in the senate and
the house of representatives recommending the modification, repeal, or enactment of any
provision of law made necessary by the repeal or modification of state taxes under this act,
or to ensure compliance with the intent of this act, and the enactment or to implement the
provisions of this act. The commissioner shall consult with the advisory group established
in subdivision 2 in developing the proposed legislation. The sourcing of sales, the duty
to collect and remit the tax, penalties, and other administrative provisions related to the
fair tax shall follow as closely as practical the sourcing, collection, remittance, penalties,
and administrative provisions of the existing sales tax with the exception that the fair tax
must be included in the sales price and not stated separately by the retailer. The legislation
shall include, at a minimum, the following:
new text end

new text begin (1) the repeal of any provision of law relating to withholding taxes;
new text end

new text begin (2) the repeal of any provision of law related to the prohibited taxes under Minnesota
Statutes, section 297A.625;
new text end

new text begin (3) the repeal of the tax exemptions and deductions and administrative provisions
related to the repeal of the taxes prohibited under Minnesota Statutes, section 297A.625;
new text end

new text begin (4) the fair tax rate necessary to replace the current sales and use tax revenue and the
revenues lost as a result of the repeal of the taxes prohibited under Minnesota Statutes,
section 297A.625;
new text end

new text begin (5) any modifications necessary to include the fair tax in the reported sale price of
all taxable property, including reporting and remittance requirements for the fair tax
collected by sellers;
new text end

new text begin (6) the method for collecting the fair tax;
new text end

new text begin (7) record-keeping requirements for all sellers;
new text end

new text begin (8) a vendor allowance provision to compensate all sellers and other remitters of the
tax to offset their costs of complying with the tax;
new text end

new text begin (9) the method for providing each qualified taxpayer with a payment to offset the
burden on taxation of basic necessities as required by section 14;
new text end

new text begin (10) any provisions necessary for administering the credits allowed in Minnesota
Statutes, section 297A.755;
new text end

new text begin (11) provisions for reporting wages to the Social Security Administration;
new text end

new text begin (12) the statutory, language, and cross-reference changes necessary to effect the
provisions of this act, including the repeal of all sections related to the prohibition of the
taxes in Minnesota Statutes, section 297A.625;
new text end

new text begin (13) recommendations for changes in rate or duration for all local sales taxes to
reflect the expanded tax base under the fair tax;
new text end

new text begin (14) recommendations for changes to existing local sales tax laws to allow their
administration with the fair tax; and
new text end

new text begin (15) any other recommendation or provision necessary to effect the provisions
of this act.
new text end

new text begin Subd. 2. new text end

new text begin Fair Tax Advisory Task Force. new text end

new text begin (a) The Fair Tax Advisory Task Force
shall provide advice to the commissioner of revenue related to the development of the
legislation required in subdivision 1.
new text end

new text begin (b) The task force shall consist of the following individuals or their designees:
new text end

new text begin (1) the commissioner of revenue;
new text end

new text begin (2) three senators who serve on the committee having jurisdiction over taxes, chosen
by the Subcommittee on Committees of the senate Committee on Rules and Administration,
of which two appointees shall be from the majority party and one from the minority party;
new text end

new text begin (3) three representatives who serve on the committee having jurisdiction over taxes,
chosen by the speaker of the house, of which two appointees shall be from the majority
party and one from the minority party;
new text end

new text begin (4) one representative from the tax section of the Minnesota Bar Association,
selected by that association;
new text end

new text begin (5) one representative from the Minnesota Society of Certified Public Accountants,
selected by that organization;
new text end

new text begin (6) a representative from the Minnesota Retailers Association, selected by the
advisory task force;
new text end

new text begin (7) a representative of the banking and credit union industry, selected by the
advisory board;
new text end

new text begin (8) two private citizens chosen by the speaker of the house; and
new text end

new text begin (9) two private citizens chosen by the majority leader of the senate.
new text end

new text begin (c) The advisory task force may adopt procedures to govern its conduct and shall
select a chair from among its members. All members serve at the pleasure of their
appointing authority.
new text end

new text begin (d) The advisory task force shall assist the commissioner in identifying specific
statutes and issues needed to be addressed in prohibiting the taxes listed in Minnesota
Statutes, section 297A.655 and replacing the lost revenues with the fair tax. It will
also review and offer recommendations on drafts of the legislation developed by the
commissioner under subdivision 1.
new text end

new text begin (e) The commissioner may accept lawful grants and in-kind contributions from any
federal, state, or local source or legal business or individual for general operation support,
including personnel costs. The staff from the Department of Revenue shall provide the
primary staffing for the advisory task force, although senate and house of representatives
legislative staff may also provide assistance at the discretion of the senate and house of
representatives members.
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

Sec. 13. new text beginFAIR TAX RATE.
new text end

new text begin The commissioner shall determine a method for setting the fair tax rate for the tax
required under this act to replace the anticipated state revenue loss due to the prohibition
of the taxes in Minnesota Statutes, section 297A.655, and the change from the existing
sales tax to the fair tax under this act. The commissioner shall determine the rate change
necessary to reduce the heritage tax rate by a revenue neutral amount as allowed under the
Minnesota Constitution, article XI, section 15. The rates determined under this section
shall be the tax rates under Minnesota Statutes, section 297A.62, subdivisions 1 and 1a,
for all sales and purchases made on or after January 1, 2018.
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

Sec. 14. new text beginMONTHLY SALES TAX REBATE.
new text end

new text begin The commissioner shall determine a method for providing a monthly sales tax
rebate for each qualified person. The sales tax rebate must be distributed to each qualified
family on or before the first business day of the month for which the sales tax rebate is
being provided. The amount of the sales tax rebate must be determined annually and be
equal to the product of the rate of the sales tax established under Minnesota Statutes,
section 297A.62, and 1/12 of the annual poverty guidelines updated periodically in the
Federal Register by the United States Department of Health and Human Services under
the authority of United States Code, title 42, section 9902(2), as amended. If a qualified
family contains two qualified individuals, the amount of the sales tax rebate will be based
on the annual poverty guidelines for a family of one plus the annual poverty guidelines for
a family size equal to one less than the number of persons in the qualified family.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and rebates under this section shall be paid beginning January 1, 2018.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, sections 290.01, subdivisions 1, 1a, 2, 3, 3a, 3b, 4, 4a,
4c, 5, 5a, 5b, 6, 7, 7a, 7b, 8, 8a, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19a, 19b, 19c, 19d,
19f, 19h, 20, 22, 29, 29a, and 30; 290.014; 290.015; 290.02; 290.03; 290.032, subdivisions
1, 2, and 3; 290.04; 290.05, subdivisions 1, 2, 3, 4, and 8; 290.06, subdivisions 1, 2c, 2d,
22, 23, 27, 28, 29, 33, 35, and 36; 290.067, subdivisions 1, 2, 2a, 2b, 3, and 4; 290.0671,
subdivisions 1a, 2, 4, 5, 6, and 7; 290.0672; 290.0674, subdivisions 1, 2, 4, and 5;
290.0675, subdivisions 1, 2, 3, and 4; 290.0677; 290.0679; 290.068, subdivisions 1, 2,
3, 4, 5, 6a, and 7; 290.0681; 290.0692; 290.07, subdivisions 1, 2, 4, and 7; 290.0802;
290.081; 290.091; 290.0921, subdivisions 1, 2, 3, 3a, 4, 6, and 8; 290.0922; 290.093;
290.095, subdivisions 1, 2, 3, 4, 5, 9, and 11; 290.10; 290.17, subdivisions 1, 2, 3, 4, 5,
and 6; 290.172; 290.191, subdivisions 1, 2, 3, 5, 6, 8, 9, 10, 11, and 12; 290.20; 290.21,
subdivisions 1 and 4; 290.22; 290.26, subdivision 6; 290.281, subdivision 1; 290.30;
290.31, subdivisions 1 and 27; 290.311, subdivision 1; 290.32; 290.34, subdivisions 1 and
2; 290.36; 290.371, subdivisions 1, 2, 3, and 4; 290.431; 290.432; 290.48, subdivision 10;
290.491; 290.62; 290.92, subdivisions 1, 2a, 3, 4, 4a, 4b, 4c, 5, 5a, 9, 10, 12, 16, 17, 19,
20, 21, 24, 25, 26, 27, 28, 29, and 30; 290.9201, subdivisions 1, 2, 6, 7, 8, and 11; 290.923,
subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 290.9705, subdivisions 1, 3, and 4; 290.9725;
290.9726, subdivisions 1, 2, and 4; 290.9727; 290.9728; 290.9729; 290.9741; 290.9742;
290.9743; 290.9744; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07;
297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; 297D.13; 297F.01; 297F.02;
297F.03; 297F.031; 297F.04; 297F.05; 297F.06; 297F.07; 297F.08, subdivisions 1, 2, 3, 4,
5, 6, 7, 8, 8a, 9, 10, 12, and 13; 297F.09, subdivisions 1, 2, 3, 4, 4a, 5, 7, 8, 9, and 10;
297F.10; 297F.11; 297F.12; 297F.13; 297F.14; 297F.15, subdivisions 9 and 10; 297F.17;
297F.18; 297F.185; 297F.19, subdivisions 1, 2, 3, 5, 6, 7, 8, and 9; 297F.20; 297F.21,
subdivisions 1, 2, and 3; 297F.23; 297F.24; 297F.25; 297G.01; 297G.02; 297G.03;
297G.031; 297G.032; 297G.04; 297G.05; 297G.06; 297G.07; 297G.08; 297G.09,
subdivisions 1, 2, 3, 4, 6, 7, 8, 9, and 10; 297G.10; 297G.11; 297G.12; 297G.13; 297G.14,
subdivision 9; 297G.16; 297G.17; 297G.18, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 11;
297G.19; 297G.20, subdivisions 1, 2, 3, and 4; 297G.22; 297H.01; 297H.02; 297H.03;
297H.04; 297H.05; 297H.06; 297H.07; 297H.08; 297H.09; 297H.10, subdivision 1;
297H.11; 297H.115; 297H.12; 297H.13, subdivisions 1, 2, and 5; 297I.01; 297I.05,
subdivisions 1, 2, 3, 4, 5, 7, 11, 12, 13, and 14; 297I.06; 297I.10, subdivisions 1, 3, and 4;
297I.11; 297I.15; 297I.20; 297I.25; 297I.30, subdivisions 1, 2, 7, 8, 9, and 10; 297I.35;
297I.40; 297I.60; 297I.65; 297I.70; 297I.75; 297I.80; 297I.85; and 297I.90,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2015 Supplement, sections 290.01, subdivisions 19 and 31;
and 290.0671, subdivisions 1 and 6a,
new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2014, sections 297A.61, subdivisions 3, 4, 10, 12, 13, 16a,
16b, 16c, 17, 17a, 17b, 18, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 41, 42, 44, 45, 46,
and 49; 297A.62, subdivision 3; 297A.63, subdivision 2; 297A.64, subdivisions 1, 2, 3, 4,
and 5; 297A.65; 297A.67, subdivisions 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13a, 14, 15, 16,
17, 18, 19, 20, 21, 23, 25, 26, 27, 28, 29, 31, and 32; 297A.68, subdivisions 1, 3, 4, 6, 7, 8,
9, 10, 11, 12, 13, 14, 16, 17, 19, 20, 22, 23, 24, 25, 28, 29, 30, 31, 32, 33, 34, 35a, 36, 37, 39,
40, 42, 43, and 44; 297A.69, subdivisions 1, 2, 3, 4, 6, and 7; 297A.70, subdivisions 1, 3, 4,
5, 6, 7, 8, 9, 9a, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19; 297A.71, subdivisions 1, 3, 6, 8,
11, 12, 13, 14, 22, 23, 34, 35, 40, 42, 43, 44, 45, 46, 47, and 48; and 297A.75,
new text end new text begin are repealed.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2015 Supplement, sections 297A.67, subdivision 13;
297A.68, subdivisions 2 and 5; and 297A.70, subdivision 2,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective for all taxable years
beginning after December 31, 2017. Paragraphs (c) and (d) are effective for sales and
purchases made after December 31, 2017.
new text end