1.1 	A bill for an act
1.2 	relating to taxation; eliminating income and business taxes and replacing the 
1.3 	sales tax with a fair tax;amending Minnesota Statutes 2014, sections 297A.61, 
1.4 	subdivisions 2, 7, 24; 297A.62, subdivisions 1, 1a; 297A.63, by adding a 
1.5 	subdivision; 297A.66, subdivision 3; proposing coding for new law in Minnesota 
1.6 	Statutes, chapter 297A; repealing Minnesota Statutes 2014, sections 290.01, 
1.7 	subdivisions 1, 1a, 2, 3, 3a, 3b, 4, 4a, 4c, 5, 5a, 5b, 6, 7, 7a, 7b, 8, 8a, 9, 10, 11, 
1.8 	12, 13, 14, 15, 16, 17, 18, 19a, 19b, 19c, 19d, 19f, 19h, 20, 22, 29, 29a, 30; 
1.9 	290.014; 290.015; 290.02; 290.03; 290.032, subdivisions 1, 2, 3; 290.04; 290.05, 
1.10 	subdivisions 1, 2, 3, 4, 8; 290.06, subdivisions 1, 2c, 2d, 22, 23, 27, 28, 29, 33, 
1.11 	35, 36; 290.067, subdivisions 1, 2, 2a, 2b, 3, 4; 290.0671, subdivisions 1a, 2, 4, 
1.12 	5, 6, 7; 290.0672; 290.0674, subdivisions 1, 2, 4, 5; 290.0675, subdivisions 1, 2, 
1.13 	3, 4; 290.0677; 290.0679; 290.068, subdivisions 1, 2, 3, 4, 5, 6a, 7; 290.0681; 
1.14 	290.0692; 290.07, subdivisions 1, 2, 4, 7; 290.0802; 290.081; 290.091; 290.0921, 
1.15 	subdivisions 1, 2, 3, 3a, 4, 6, 8; 290.0922; 290.093; 290.095, subdivisions 1, 2, 
1.16 	3, 4, 5, 9, 11; 290.10; 290.17, subdivisions 1, 2, 3, 4, 5, 6; 290.172; 290.191, 
1.17 	subdivisions 1, 2, 3, 5, 6, 8, 9, 10, 11, 12; 290.20; 290.21, subdivisions 1, 
1.18 	4; 290.22; 290.26, subdivision 6; 290.281, subdivision 1; 290.30; 290.31, 
1.19 	subdivisions 1, 27; 290.311, subdivision 1; 290.32; 290.34, subdivisions 1, 2; 
1.20 	290.36; 290.371, subdivisions 1, 2, 3, 4; 290.431; 290.432; 290.48, subdivision 
1.21 	10; 290.491; 290.62; 290.92, subdivisions 1, 2a, 3, 4, 4a, 4b, 4c, 5, 5a, 9, 10, 12, 
1.22 	16, 17, 19, 20, 21, 24, 25, 26, 27, 28, 29, 30; 290.9201, subdivisions 1, 2, 6, 7, 8, 
1.23 	11; 290.923, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, 11; 290.9705, subdivisions 1, 
1.24 	3, 4; 290.9725; 290.9726, subdivisions 1, 2, 4; 290.9727; 290.9728; 290.9729; 
1.25 	290.9741; 290.9742; 290.9743; 290.9744; 297A.61, subdivisions 3, 4, 10, 12, 
1.26 	13, 16a, 16b, 16c, 17, 17a, 17b, 18, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 
1.27 	41, 42, 44, 45, 46, 49; 297A.62, subdivision 3; 297A.63, subdivision 2; 297A.64, 
1.28 	subdivisions 1, 2, 3, 4, 5; 297A.65; 297A.67, subdivisions 2, 3, 4, 5, 6, 7, 7a, 8, 
1.29 	9, 10, 11, 12, 13a, 14, 15, 16, 17, 18, 19, 20, 21, 23, 25, 26, 27, 28, 29, 31, 32; 
1.30 	297A.68, subdivisions 1, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 19, 20, 22, 
1.31 	23, 24, 25, 28, 29, 30, 31, 32, 33, 34, 35a, 36, 37, 39, 40, 42, 43, 44; 297A.69, 
1.32 	subdivisions 1, 2, 3, 4, 6, 7; 297A.70, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 9a, 10, 
1.33 	11, 12, 13, 14, 15, 16, 17, 18, 19; 297A.71, subdivisions 1, 3, 6, 8, 11, 12, 13, 
1.34 	14, 22, 23, 34, 35, 40, 42, 43, 44, 45, 46, 47, 48; 297A.75; 297D.01; 297D.02; 
1.35 	297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 
1.36 	297D.10; 297D.11; 297D.12; 297D.13; 297F.01; 297F.02; 297F.03; 297F.031; 
1.37 	297F.04; 297F.05; 297F.06; 297F.07; 297F.08, subdivisions 1, 2, 3, 4, 5, 6, 7, 
1.38 	8, 8a, 9, 10, 12, 13; 297F.09, subdivisions 1, 2, 3, 4, 4a, 5, 7, 8, 9, 10; 297F.10; 
1.39 	297F.11; 297F.12; 297F.13; 297F.14; 297F.15, subdivisions 9, 10; 297F.17; 
2.1 	297F.18; 297F.185; 297F.19, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 297F.20; 297F.21, 
2.2 	subdivisions 1, 2, 3; 297F.23; 297F.24; 297F.25; 297G.01; 297G.02; 297G.03; 
2.3 	297G.031; 297G.032; 297G.04; 297G.05; 297G.06; 297G.07; 297G.08; 
2.4 	297G.09, subdivisions 1, 2, 3, 4, 6, 7, 8, 9, 10; 297G.10; 297G.11; 297G.12; 
2.5 	297G.13; 297G.14, subdivision 9; 297G.16; 297G.17; 297G.18, subdivisions 1, 
2.6 	2, 3, 5, 6, 7, 8, 9, 10, 11; 297G.19; 297G.20, subdivisions 1, 2, 3, 4; 297G.22; 
2.7 	297H.01; 297H.02; 297H.03; 297H.04; 297H.05; 297H.06; 297H.07; 297H.08; 
2.8 	297H.09; 297H.10, subdivision 1; 297H.11; 297H.115; 297H.12; 297H.13, 
2.9 	subdivisions 1, 2, 5; 297I.01; 297I.05, subdivisions 1, 2, 3, 4, 5, 7, 11, 12, 
2.10 	13, 14; 297I.06; 297I.10, subdivisions 1, 3, 4; 297I.11; 297I.15; 297I.20; 
2.11 	297I.25; 297I.30, subdivisions 1, 2, 7, 8, 9, 10; 297I.35; 297I.40; 297I.60; 
2.12 	297I.65; 297I.70; 297I.75; 297I.80; 297I.85; 297I.90; Minnesota Statutes 2015 
2.13 	Supplement, sections 290.01, subdivisions 19, 31; 290.0671, subdivisions 1, 6a; 
2.14 	297A.67, subdivision 13; 297A.68, subdivisions 2, 5; 297A.70, subdivision 2.
2.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.16 	Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 2, is amended to read:
2.17 		Subd. 2.Person. (a) "Person" means any natural person, and includes any 
2.18 	individual or group and any combination of individuals, groups, or individuals and 
2.19 	groups acting as a unit.
2.20 	(b) Person also includes, unless the context clearly does not allow it, a firm, 
2.21 	partnership, joint venture, limited liability company, association, cooperative, social club, 
2.22 	fraternal organization, municipal or private corporation whether or not organized for 
2.23 	profit, estate, trust, business trust, receiver, trustee, syndicate, the United States, and a 
2.24 	state and its political subdivisions.
2.25 	(c) Person includes, but is not limited to, directors and officers of corporations, 
2.26 	governors and managers of a limited liability company, or members of partnerships who, 
2.27 	either individually or jointly with others, have the control, supervision, or responsibility of 
2.28 	filing returns and making payment of the amount of tax imposed by this chapter.
2.29 	(d) Person includes any agent or consignee of any individual or organization listed 
2.30 	in this subdivision.

2.31 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
2.32 	or after January 1, 2018.

2.33 	Sec. 2. Minnesota Statutes 2014, section 297A.61, subdivision 7, is amended to read:
2.34 		Subd. 7.Sales price. (a) "Sales price" means the measure subject to sales tax, and 
2.35 	means the total amount of consideration, including cash, credit, personal property, and 
2.36 	services, for which personal property or services are sold, leased, or rented, valued in 
2.37 	money, whether received in money or otherwise, without any deduction for the following:
2.38 	(1) the seller's cost of the property sold;
3.1 	(2) the cost of materials used, labor or service cost, interest, losses, all costs of 
3.2 	transportation to the seller, all taxes imposed on the seller, and any other expenses of 
3.3 	the seller;
3.4 	(3) charges by the seller for any services necessary to complete the sale, other than 
3.5 	delivery and installation charges;
3.6 	(4) delivery charges, except the percentage of the delivery charge allocated to 
3.7 	delivery of tax exempt property, when the delivery charge is allocated by using either (i) a 
3.8 	percentage based on the total sales price of the taxable property compared to the total sales 
3.9 	price of all property in the shipment, or (ii) a percentage based on the total weight of the 
3.10 	taxable property compared to the total weight of all property in the shipment; and
3.11 	(5) installation charges.
3.12 	(b) Sales price does not include:
3.13 	(1) discounts, including cash, terms, or coupons, that are not reimbursed by a third 
3.14 	party and that are allowed by the seller and taken by a purchaser on a sale; and 
3.15 	(2) interest, financing, and carrying charges from credit extended on the sale of 
3.16 	personal property or services, if the amount is separately stated on the invoice, bill of sale, 
3.17 	or similar document given to the purchaser; and
3.18 	(3) (2) any taxes legally imposed directly on the consumer that are separately stated 
3.19 	on the invoice, bill of sale, or similar document given to the purchaser.
3.20 	(c) Sales price includes consideration received by the seller from third parties if:
3.21 	(1) the seller actually receives consideration from a party other than the purchaser 
3.22 	and the consideration is directly related to a price reduction or discount on the sale;
3.23 	(2) the seller has an obligation to pass the price reduction or discount through to 
3.24 	the purchaser;
3.25 	(3) the amount of the consideration attributable to the sale is fixed and determinable 
3.26 	by the seller at the time of the sale of the item to the purchaser; and
3.27 	(4) one of the following criteria is met:
3.28 	(i) the purchaser presents a coupon, certificate, or other documentation to the seller 
3.29 	to claim a price reduction or discount when the coupon, certificate, or documentation is 
3.30 	authorized, distributed, or granted by a third party with the understanding that the third party 
3.31 	will reimburse any seller to whom the coupon, certificate, or documentation is presented;
3.32 	(ii) the purchaser identifies himself or herself to the seller as a member of a group or 
3.33 	organization entitled to a price reduction or discount. A "preferred customer" card that is 
3.34 	available to any customer does not constitute membership in such a group; or
4.1 	(iii) the price reduction or discount is identified as a third-party price reduction or 
4.2 	discount on the invoice received by the purchaser or on a coupon, certificate, or other 
4.3 	documentation presented by the purchaser.

4.4 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
4.5 	or after January 1, 2018.

4.6 	Sec. 3. Minnesota Statutes 2014, section 297A.61, subdivision 24, is amended to read:
4.7 		Subd. 24.Telecommunications services. (a) "Telecommunications services" means 
4.8 	the electronic transmission, conveyance, or routing of voice, data, audio, video, or any 
4.9 	other information or signals to a point, or between or among points.
4.10 	(b) Telecommunications services include transmission, conveyance, or routing in 
4.11 	which computer processing applications are used to act on the form, code, or protocol 
4.12 	of the content for purposes of transmission, conveyance, or routing, without regard to 
4.13 	whether the service is referred to as Voice over Internet Protocol services or is classified 
4.14 	by the Federal Communications Commission as enhanced or value added.
4.15 	(c) Telecommunications services do not include:
4.16 	(1) data processing and information services that allow data to be generated, 
4.17 	acquired, stored, processed, or retrieved and delivered by an electronic transmission to 
4.18 	a purchaser when the purchaser's primary purpose for the underlying transaction is the 
4.19 	processed data or information;
4.20 	(2) installation or maintenance of wiring or equipment on a customer's premises;
4.21 	(3) tangible personal property;
4.22 	(4) advertising, including, but not limited to, directory advertising;
4.23 	(5) billing and collection services provided to third parties;
4.24 	(6) Internet access service;
4.25 	(7) radio and television audio and video programming services, regardless of the 
4.26 	medium, including the furnishing of transmission, conveyance, and routing of such 
4.27 	services by the programming service provider. Radio and television audio and video 
4.28 	programming services includes, but is not limited to, cable service as defined in United 
4.29 	States Code, title 47, section 522(6), and audio and video programming services delivered 
4.30 	by commercial mobile radio service providers, as defined in Code of Federal Regulations, 
4.31 	title 47, section 20.3;
4.32 	(8) ancillary services; or
4.33 	(9) digital products delivered electronically, including, but not limited to, software, 
4.34 	music, video, reading materials, or ring tones.

5.1 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
5.2 	or after January 1, 2018.

5.3 	Sec. 4. [297A.611] ADDITIONAL FAIR TAX DEFINITIONS.
5.4 		Subdivision 1.Applicability. The following words, terms, and phrases when used 
5.5 	in this chapter have the meanings given them in this section, unless the context clearly 
5.6 	indicates a different meaning.
5.7 		Subd. 2.Fair tax. "Fair tax" means the sales and use tax imposed under this chapter 
5.8 	and incorporated into the gross sales price of all taxable property and taxable services.
5.9 		Subd. 3.Basic interest rate. "Basic interest rate" means:
5.10 	(1) in the case of a debt instrument, investment, financing lease, or account with a 
5.11 	term of not over three years, the applicable interest rate is a short-term rate based on the 
5.12 	average market yield during any one month on outstanding marketable obligations of the 
5.13 	United States with remaining periods to maturity of three years or fewer;
5.14 	(2) in the case of a debt instrument, investment, financing lease, or account with a 
5.15 	term of over three years but not over nine years, the applicable interest rate is a mid-term 
5.16 	rate based on the average market yield during any one month on outstanding marketable 
5.17 	obligations of the United States with remaining periods to maturity of more than three 
5.18 	years but not over nine years; or
5.19 	(3) in the case of a debt instrument, investment, financing lease, or account with a 
5.20 	term over nine years, the applicable interest rate is a long-term rate based on the average 
5.21 	market yield during any one month on outstanding marketable obligations of the United 
5.22 	States with remaining periods to maturity of over nine years.
5.23 		Subd. 4.Business purpose. "Business purpose" means a purchase made by a 
5.24 	person engaged in a trade or business and used in that trade or business for resale, to 
5.25 	produce, provide, render, or sell taxable property or taxable services, or in furtherance of 
5.26 	other bona fide business purposes.
5.27 		Subd. 5.Business use conversion. "Business use conversion" means the use of 
5.28 	taxable property or taxable services upon which tax was imposed and actually paid that 
5.29 	commenced to be 95 percent or more used for business purposes.
5.30 		Subd. 6.Dependent. (a) "Dependent" means a resident of this state with a valid 
5.31 	Social Security number who is:
5.32 	(1) under the age of 18 and is not a legally emancipated minor; or
5.33 	(2) 18 years of age or older and a registered student during not fewer than five 
5.34 	months in a calendar year who receives over 50 percent of their support during a calendar 
6.1 	year from a family member or legal guardian, regardless of whether the individual lives in 
6.2 	a common residence with a qualified family.
6.3 	(b) For purposes of this subdivision "legally emancipated minor" means a person 
6.4 	under the age of 18 years who: 
6.5 	(1) has been married;
6.6 	(2) is on active duty in the uniformed services of the United States;
6.7 	(3) has been emancipated by a court of competent jurisdiction; or
6.8 	(4) is otherwise considered emancipated under Minnesota law, and for whom 
6.9 	county social services has not determined that a social services case plan is necessary, 
6.10 	for reasons other than the child has failed or refuses to cooperate with the county agency 
6.11 	in developing the plan, and a child living on their own pursuant to section 260C.201, 
6.12 	subdivision 1, paragraph (a), clause (5).
6.13 	(c) For purposes of this subdivision, a dependent whose parents are divorced or legally 
6.14 	separated is treated as a dependent of the custodial parent, and in cases of joint custody, 
6.15 	the custodial parent is the parent that has custody of the child for more than one-half of the 
6.16 	time during a given calendar year. A parent entitled to be treated as the custodial parent 
6.17 	under this paragraph may release the claim to the other parent if the release is in writing.
6.18 		Subd. 7.Education and training costs. "Education and training costs" includes 
6.19 	tuition for primary, secondary, or postsecondary level education, and job-related training 
6.20 	courses. Education and training does not include costs for room, board, sports activities, 
6.21 	recreational activities, hobbies, games, arts or crafts, or cultural activities.
6.22 		Subd. 8.Explicitly charged fees. "Explicitly charged fees" means:
6.23 	(1) brokerage fees;
6.24 	(2) explicitly stated banking, loan origination, processing, documentation, credit 
6.25 	check fees, or other similar fees;
6.26 	(3) safe deposit box fees;
6.27 	(4) trustees' fees; and
6.28 	(5) other financial services fees, including mutual fund management, sales, and 
6.29 	exit fees.
6.30 		Subd. 9.Financial intermediation services. The value of "financial intermediation 
6.31 	services" means the sum of:
6.32 	(1) explicitly charged fees for financial intermediation services; and
6.33 	(2) implicitly charged fees for financial intermediation services.
6.34 		Subd. 10.Government enterprise. "Government enterprise" means an entity owned 
6.35 	and operated by a federal, state, or local governmental unit or political subdivision that 
7.1 	receives gross payments from private persons, provided that in any quarter in the calendar 
7.2 	year it has revenues from selling taxable property or taxable services that exceed $2,500.
7.3 		Subd. 11.Gross imputed amount. "Gross imputed amount" means:
7.4 	(1) with respect to any underlying interest-bearing investment or account, the 
7.5 	product of:
7.6 	(i) the excess of the basic interest rate over the rate paid on the investment; and
7.7 	(ii) the amount of the investment or account; or
7.8 	(2) with respect to any underlying interest-bearing debt, the product of:
7.9 	(i) the excess of the rate paid on the debt over the basic interest rate; and
7.10 	(ii) the amount of the debt.
7.11 		Subd. 12.Gross payment. "Gross payment" means the total amount charged for 
7.12 	taxable property and taxable services, including the taxes imposed under this chapter.
7.13 		Subd. 13.Implicitly charged fees. "Implicitly charged fees" means the gross 
7.14 	imputed amount in relation to any underlying interest-bearing investment, account, or debt.
7.15 		Subd. 14.Intangible property. "Intangible property" includes copyrights, 
7.16 	trademarks, patents, goodwill, financial instruments, securities, commercial paper, debts, 
7.17 	notes and bonds, and other property deemed intangible under state law. Intangible 
7.18 	property does not include tangible personal property or rents or a leasehold of any term 
7.19 	on the tangible personal property, real property or rents or leaseholds of any term on 
7.20 	the real property, or computer software.
7.21 		Subd. 15.Investment purpose. "Investment purpose" means the purchase of 
7.22 	property exclusively for the purpose of appreciation or the production of income but not 
7.23 	entailing more than minor personal efforts.
7.24 		Subd. 16.Mixed-use property. "Mixed-use property" means a taxable property or 
7.25 	taxable service used for both taxable use or consumption and for a business purpose.
7.26 		Subd. 17.Net payment. "Net payment" means the total amount charged for taxable 
7.27 	property or taxable services, excluding the taxes imposed under this chapter.
7.28 		Subd. 18.Nonprofit organization. "Nonprofit organization" means any corporation, 
7.29 	society, association, foundation, or institution organized and operated exclusively for 
7.30 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
7.31 	federal income taxation pursuant to section 501(c) of the Internal Revenue Code.
7.32 		Subd. 19.Produce, provide, render, or sell taxable property or taxable services.
 7.33 	"Produce, provide, render, or sell taxable property or taxable services" includes the 
7.34 	following:
7.35 	(1) a taxable property or taxable service is used to produce, provide, render, or sell 
7.36 	a taxable property or taxable service if the property or service is purchased by a person 
8.1 	engaged in a trade or business for the purpose of employing or using the taxable property 
8.2 	or taxable service in the production, provision, rendering, or sale of other taxable property 
8.3 	or taxable services in the ordinary course of that trade or business;
8.4 	(2) taxable property or taxable services used in a trade or business for the purpose of 
8.5 	research, experimentation, testing, and development is treated as used to produce, provide, 
8.6 	render, or sell taxable property or taxable services; 
8.7 	(3) taxable property or taxable services purchased by an insurer on behalf of an 
8.8 	insured is treated as used to produce, provide, render, or sell taxable property or taxable 
8.9 	services if the premium for the insurance contract giving rise to the insurer's obligation 
8.10 	was subject to tax on financial intermediation services under this chapter; and
8.11 	(4) education and training are treated as services used to produce, provide, render, or 
8.12 	sell taxable property or taxable services.
8.13 		Subd. 20.Qualified family. "Qualified family" consists of the following persons 
8.14 	sharing a common residence: 
8.15 	(1) a qualified individual;
8.16 	(2) the qualified individual's spouse; and
8.17 	(3) all dependents of either the qualified individual, their spouse, or both the 
8.18 	qualified individual and their spouse, including dependents that are students living away 
8.19 	from the common residence for part of the year.
8.20 		Subd. 21.Qualified individual. "Qualified individual" means a resident of this state 
8.21 	with a valid Social Security number who does not meet the definition of dependent.
8.22 		Subd. 22.Taxable employer. (a) "Taxable employer" includes, but is not limited to, 
8.23 	the following:
8.24 	(1) any household employing domestic servants; and
8.25 	(2) any government except for government enterprises.
8.26 	(b) Taxable employer does not include any employer that is:
8.27 	(1) engaged in a trade or business;
8.28 	(2) a nonprofit organization; or
8.29 	(3) a government enterprise.
8.30 	Taxable employer does not include the federal government or its agencies, until such time 
8.31 	as federal law allows state taxation of the federal government.
8.32 		Subd. 23.Taxable property; taxable service. (a) "Taxable property" means any 
8.33 	tangible personal property and all digital products including, but not limited to, the 
8.34 	following:
9.1 	(1) property purchased for business use but subsequently converted to personal use, 
9.2 	which is subject to the tax imposed by this section at the fair market value of the converted 
9.3 	property as of the date of conversion;
9.4 	(2) leaseholds of any term;
9.5 	(3) rents with respect to the property;
9.6 	(4) property exchanged in barter transactions, which must be taxed as if the 
9.7 	transaction was made in cash; and
9.8 	(5) mixed-use property, to the extent the property is used for a personal and not 
9.9 	a business purpose.
9.10 	(b) "Taxable service" means any service, including any financial intermediation 
9.11 	service, any service performed by an employee for which the employee is paid wages by a 
9.12 	taxable employer, but shall not include any service performed by an employee for which 
9.13 	the employee is paid wages by:
9.14 	(1) an employer in the regular course of the employer's trade or business;
9.15 	(2) an employer that is a nonprofit organization;
9.16 	(3) an employer that is a government enterprise; or
9.17 	(4) taxable employers to employees directly providing education and training.
9.18 	(c) Taxable property and taxable service do not include any intangible property 
9.19 	or used property or property held exclusively for an investment purpose, or any state 
9.20 	government functions that do not constitute the final consumption of property or services.
9.21 	(d) Taxable property and taxable service include sales of property or services by a 
9.22 	nonprofit organization for fund-raising purposes.
9.23 		Subd. 24.Used property. "Used property" means property for which the tax under 
9.24 	this chapter has been collected and for which no credit has been allowed, or property that 
9.25 	was held other than for a business purpose on December 31, 2013.
9.26 		Subd. 25.Wages. "Wages" means all compensation paid for employment service 
9.27 	including salaries, cash compensation, employee benefits, disability insurance, wage 
9.28 	replacement insurance payments, unemployment compensation insurance, workers' 
9.29 	compensation insurance, and the fair market value of any other consideration paid by an 
9.30 	employer to an employee in consideration for employment services rendered.

9.31 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
9.32 	or after January 1, 2018.

9.33 	Sec. 5. Minnesota Statutes 2014, section 297A.62, subdivision 1, is amended to read:
9.34 		Subdivision 1.Generally. Except as otherwise provided in subdivision 3 or in this 
9.35 	chapter, a sales tax of 6.5 percent at the rate calculated under section 13 is imposed on the 
10.1 	gross receipts from retail sales as defined in section 297A.61, subdivision 4, net payments 
10.2 	on the production, provision, rendering, or selling of taxable property or taxable services
10.3 	made in this state or to a destination in this state by a person who is required to have or 
10.4 	voluntarily obtains a permit under section 297A.83, subdivision 1.

10.5 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
10.6 	or after January 1, 2018.

10.7 	Sec. 6. Minnesota Statutes 2014, section 297A.62, subdivision 1a, is amended to read:
10.8 		Subd. 1a.Constitutionally required sales tax increase. Except as otherwise 
10.9 	provided in subdivision 3 or in this chapter, an additional sales tax of 0.375 percent, 
10.10 	adjusted as determined under section 13 as required under the Minnesota Constitution, 
10.11 	article XI, section 15, is imposed on the gross receipts from retail sales as defined in 
10.12 	section 297A.61, subdivision 4, net payments on the production, provision, rendering, or 
10.13 	selling of taxable property or taxable services made in this state or to a destination in this 
10.14 	state by a person who is required to have or voluntarily obtains a permit under section 
10.15 	297A.83, subdivision 1. This additional tax expires July 1, 2034.

10.16 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
10.17 	or after January 1, 2018.

10.18 	Sec. 7. [297A.625] PROHIBITION ON CERTAIN TAXES; IMPOSITION OF 
10.19 	THE FAIR TAX.
10.20 	(a) For taxable years beginning after December 31, 2017, imposition of the 
10.21 	following taxes are prohibited:
10.22 	(1) individual income and corporate franchise taxes;
10.23 	(2) insurance taxes;
10.24 	(3) occupation taxes; and
10.25 	(4) sales, excise, and gross receipts taxes other than the taxes under this chapter and 
10.26 	chapters 296A and 297B.
10.27 	(b) For taxable years beginning after December 31, 2017, all revenues lost as a result 
10.28 	of the repeal of the taxes under paragraph (a) shall be replaced by the levy and imposition 
10.29 	of a sales tax upon all final use or consumption of taxable property or taxable services 
10.30 	in this state. The sales tax under this chapter shall be renamed the "fair tax" and the 
10.31 	rates under section 297A.62 shall be modified to the rates determined under section 13. 
10.32 	The fair tax shall be incorporated into the gross payment and sales price for all taxable 
10.33 	goods and services.

11.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.2 	Sec. 8. Minnesota Statutes 2014, section 297A.63, is amended by adding a subdivision 
11.3 	to read:
11.4 		Subd. 4.Conversion of business purchases to personal use. Use tax is owed on 
11.5 	property and services purchased exempt from the tax under this chapter as a purchase for 
11.6 	business use that is subsequently used more than five percent for personal use. The tax is 
11.7 	owed on the value of the property or service at the time of conversion. This includes the 
11.8 	conversion of housing from rental or other business property to personal use by the owner.

11.9 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
11.10 	or after January 1, 2018.

11.11 	Sec. 9. Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read:
11.12 		Subd. 3.Retailer not maintaining place of business in this state. (a) To the 
11.13 	extent allowed by the United States Constitution and in accordance with the terms and 
11.14 	conditions of federal remote seller law, a retailer making retail sales from outside this state 
11.15 	to a destination within this state and not maintaining a place of business in this state shall 
11.16 	collect sales and use taxes and remit them to the commissioner under section 297A.77.
11.17 	(b) To the extent allowed by the United States Constitution and the laws of the 
11.18 	United States, a retailer making retail sales from outside this state to a destination within 
11.19 	this state and not maintaining a place of business in this state shall collect sales and use 
11.20 	taxes and remit them to the commissioner under section 297A.77, if the retailer engages in 
11.21 	the regular or systematic soliciting of sales from potential customers in this state by:
11.22 	(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or 
11.23 	other written solicitations of business to customers in this state;
11.24 	(2) display of advertisements on billboards or other outdoor advertising in this state;
11.25 	(3) advertisements in newspapers published in this state;
11.26 	(4) advertisements in trade journals or other periodicals the circulation of which is 
11.27 	primarily within this state;
11.28 	(5) advertisements in a Minnesota edition of a national or regional publication or 
11.29 	a limited regional edition in which this state is included as part of a broader regional or 
11.30 	national publication which are not placed in other geographically defined editions of the 
11.31 	same issue of the same publication;
11.32 	(6) advertisements in regional or national publications in an edition which is not 
11.33 	by its contents geographically targeted to Minnesota but which is sold over the counter 
11.34 	in Minnesota or by subscription to Minnesota residents;
12.1 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
12.2 	(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, 
12.3 	microwave, or other communication system.
12.4 	This paragraph must be construed without regard to the state from which distribution 
12.5 	of the materials originated or in which they were prepared.
12.6 	(c) The location within or without this state of independent vendors that provide 
12.7 	products or services to the retailer in connection with its solicitation of customers within this 
12.8 	state, including such products and services as creation of copy, printing, distribution, and 
12.9 	recording, is not considered in determining whether the retailer is required to collect tax.
12.10 	(d) A retailer not maintaining a place of business in this state is presumed, subject to 
12.11 	rebuttal, to be engaged in regular solicitation within this state if it engages in any of the 
12.12 	activities in paragraph (b) and:
12.13 	(1) makes 100 or more retail sales from outside this state to destinations in this state 
12.14 	during a period of 12 consecutive months; or
12.15 	(2) makes ten or more retail sales totaling more than $100,000 from outside this state 
12.16 	to destinations in this state during a period of 12 consecutive months.
12.17 	(b) A retailer that is not subject to paragraph (a) that does not maintain a place of 
12.18 	business in this state but made taxable sales of at least $1,000,000 in the previous year 
12.19 	from outside this state to destinations within this state shall collect sales and use taxes but 
12.20 	shall be compensated for the administrative costs related to the collection and remittance 
12.21 	of the sales tax. The commissioner shall, after reviewing the recommendations of the 
12.22 	advisory task force established in section 12, develop a method for calculating and paying 
12.23 	the compensation required under this paragraph. If a retailer subject to this paragraph and 
12.24 	the commissioner are unable to agree on the method for calculating compensation and 
12.25 	the retailer demands arbitration, the matter must be submitted to binding arbitration in 
12.26 	accordance with chapter 572B, and the rules of the American Arbitration Association. 
12.27 	Retailers subject to this paragraph may choose to combine into a single group and jointly 
12.28 	request that their objections be combined and dealt with in a single arbitration. Within 30 
12.29 	days after the demand for arbitration, the parties shall each select an arbitrator or agree 
12.30 	upon a single arbitrator. If the parties each select an arbitrator, the two arbitrators shall 
12.31 	select a third arbitrator within 45 days after the demand for arbitration. Each party shall 
12.32 	pay the fees and expenses of the arbitrator it selected and the parties shall share equally 
12.33 	the expenses of the third arbitrator or an arbitrator agreed upon mutually by the parties.

12.34 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
12.35 	or after January 1, 2018.

13.1 	Sec. 10. [297A.712] EXEMPTIONS.
13.2 		Subdivision 1.Scope. The net payments from the sale, storage, distribution, use, 
13.3 	or consumption of the taxable property and taxable services contained in this section are 
13.4 	specifically exempted from the taxes imposed under this chapter.
13.5 		Subd. 2.Purchased for a business purpose. Taxable property or taxable services 
13.6 	purchased by a person engaged in a trade or business are exempt if used in that trade or 
13.7 	business:
13.8 	(1) for resale;
13.9 	(2) to produce, provide, render, or sell taxable property or taxable services; or
13.10 	(3) in furtherance of other bona fide business purposes.
13.11 		Subd. 3.Purchased for use outside of the state. Taxable property or taxable 
13.12 	services purchased for export from Minnesota for use or consumption outside of the 
13.13 	state are exempt.
13.14 		Subd. 4.Purchased for an investment purpose. Taxable property purchased 
13.15 	exclusively for appreciation or the production of income with minor personal effort are 
13.16 	exempt.
13.17 		Subd. 5.Purchases by a government enterprise. Taxable property and taxable 
13.18 	services purchased by a government enterprise are exempt.
13.19 		Subd. 6.Education costs. Education and training costs paid to an accredited 
13.20 	institution of higher education are exempt. Tuition paid to an accredited elementary school 
13.21 	or secondary school program is also exempt.
13.22 		Subd. 7.Petroleum and other fuels. Purchases of petroleum and other fuels subject 
13.23 	to the tax under chapter 296A are exempt.
13.24 		Subd. 8.Purchases by and goods and services provided by certain nonprofit 
13.25 	organizations. (a) Taxable property and taxable services purchased by a qualifying 
13.26 	nonprofit organization are exempt if used for the purposes allowed for that nonprofit 
13.27 	under this subdivision.
13.28 	(b) Taxable property and taxable services provided to others by a qualifying 
13.29 	nonprofit organization are exempt if used for the purposes allowed for that nonprofit 
13.30 	organization under this subdivision.
13.31 	(c) For purposes of this subdivision "qualifying nonprofit organization" means 
13.32 	one of the following:
13.33 	(1) a corporation, society, association, foundation, or institution organized and 
13.34 	operated exclusively for charitable, religious, or education purposes, including the 
13.35 	maintenance of a cemetery owned by a religious organization;
13.36 	(2) any senior citizen group or association of groups that:
14.1 	(i) in general limits membership to persons who are either age 55 or older, or 
14.2 	physically disabled;
14.3 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
14.4 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
14.5 	the benefit of any private shareholders; and
14.6 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code;
14.7 	(3) an organization of military service veterans or an auxiliary unit of an organization 
14.8 	of military service veterans are exempt if:
14.9 	(i) the organization or auxiliary unit is organized within Minnesota and is exempt 
14.10 	from federal taxation under section 501(c), clause (19), of the Internal Revenue Code; and
14.11 	(ii) the tangible personal property or services are purchased for charitable, civic, 
14.12 	educational, or nonprofit uses and not for social, recreational, pleasure, or profit uses; and
14.13 	(4) a nonprofit organization that exists solely for the purpose of providing 
14.14 	educational or social activities for young people primarily age 18 and under.
14.15 		Subd. 9.Purchase by the federal government. Taxable property and taxable 
14.16 	services purchased by the United States and its agencies and instrumentalities are exempt. 
14.17 	Any state or local government purchases made with funds received from the federal 
14.18 	government are also exempt to the extent required under federal law.

14.19 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
14.20 	or after January 1, 2018.

14.21 	Sec. 11. [297A.755] CREDITS AND REFUNDS.
14.22 		Subdivision 1.Generally. (a) Each person shall be allowed a credit with respect to 
14.23 	the taxes imposed under this chapter for each month equal to the sum of:
14.24 	(1) the business use conversion credit under subdivision 2;
14.25 	(2) the intermediate and export sales credit under subdivision 3;
14.26 	(4) the insurance proceeds credit under subdivision 4;
14.27 	(5) the bad debt credit under section 297A.81; or
14.28 	(6) any amount paid in excess of the amount due.
14.29 	(b) Only one credit paid may be taken with respect to the sale or purchase of any 
14.30 	particular taxable property or taxable service.
14.31 	(c) Each qualified person shall be paid a monthly sales tax rebate, as determined 
14.32 	under section 14.
14.33 		Subd. 2.Business use conversion credit. A person is eligible for a credit for 
14.34 	the fair tax paid on taxable property and taxable services if the property or service is 
15.1 	subsequently used at least 95 percent for business purposes. The credit is equal to the tax 
15.2 	included in the gross payment on the taxable property or taxable service.
15.3 		Subd. 3.Intermediate and export credit. A person is eligible for a credit for the 
15.4 	fair tax paid on the purchase of any taxable property or taxable service purchased for a 
15.5 	business purpose in a trade or business or exported from the state for use or consumption 
15.6 	outside of the state.
15.7 		Subd. 4.Insurance proceeds credit. (a) Any person receiving a payment from an 
15.8 	insurer by virtue of an insurance contract, if the insurance premium is subject to the tax 
15.9 	under this chapter, shall be entitled to a credit in an amount equal to the product of the tax 
15.10 	rates imposed under section 297A.62 and the amount of the payment made by the insurer, 
15.11 	adjusted as required in paragraphs (b) and (c). For purposes of this section, "insurance 
15.12 	contract" shall include the following insurance contracts:
15.13 	(1) life;
15.14 	(2) health;
15.15 	(3) property and casualty loss;
15.16 	(4) general liability;
15.17 	(5) marine;
15.18 	(6) fire;
15.19 	(7) accident;
15.20 	(8) disability;
15.21 	(9) long-term care; or
15.22 	(10) any combination of clauses (1) to (9).
15.23 	(b) The credit under paragraph (a) shall be paid by the insurer to the insured and the 
15.24 	insurer shall be entitled to the credit in lieu of the insured, except that the insurer may 
15.25 	elect, in a form prescribed by the commissioner, to not pay the credit and require the 
15.26 	insured to apply for the credit. In the event of such election, the insurer must provide the 
15.27 	commissioner and the insured the name and tax identification number of the insurer and of 
15.28 	the insured and indicate the proper amount of the credit.
15.29 	(c) If taxable property or taxable services purchased by an insurer on behalf of the 
15.30 	insured are purchased free of tax as a purchase for use in a trade or business, then the 
15.31 	credit is not available for that purchase.

15.32 	EFFECTIVE DATE. This section is effective for sales and purchases made on 
15.33 	or after January 1, 2018.

15.34 	Sec. 12. FAIR TAX LEGISLATION; ADVISORY TASK FORCE.
 16.1 		Subdivision 1.Proposed legislation. No later than February 1, 2017, the 
16.2 	commissioner of revenue shall submit legislation to the chairs and ranking minority 
16.3 	members of the legislative committees having jurisdiction over taxes in the senate and 
16.4 	the house of representatives recommending the modification, repeal, or enactment of any 
16.5 	provision of law made necessary by the repeal or modification of state taxes under this act, 
16.6 	or to ensure compliance with the intent of this act, and the enactment or to implement the 
16.7 	provisions of this act. The commissioner shall consult with the advisory group established 
16.8 	in subdivision 2 in developing the proposed legislation. The sourcing of sales, the duty 
16.9 	to collect and remit the tax, penalties, and other administrative provisions related to the 
16.10 	fair tax shall follow as closely as practical the sourcing, collection, remittance, penalties, 
16.11 	and administrative provisions of the existing sales tax with the exception that the fair tax 
16.12 	must be included in the sales price and not stated separately by the retailer. The legislation 
16.13 	shall include, at a minimum, the following:
16.14 	(1) the repeal of any provision of law relating to withholding taxes;
16.15 	(2) the repeal of any provision of law related to the prohibited taxes under Minnesota 
16.16 	Statutes, section 297A.625;
16.17 	(3) the repeal of the tax exemptions and deductions and administrative provisions 
16.18 	related to the repeal of the taxes prohibited under Minnesota Statutes, section 297A.625;
16.19 	(4) the fair tax rate necessary to replace the current sales and use tax revenue and the 
16.20 	revenues lost as a result of the repeal of the taxes prohibited under Minnesota Statutes, 
16.21 	section 297A.625; 
16.22 	(5) any modifications necessary to include the fair tax in the reported sale price of 
16.23 	all taxable property, including reporting and remittance requirements for the fair tax 
16.24 	collected by sellers;
16.25 	(6) the method for collecting the fair tax;
16.26 	(7) record-keeping requirements for all sellers;
16.27 	(8) a vendor allowance provision to compensate all sellers and other remitters of the 
16.28 	tax to offset their costs of complying with the tax;
16.29 	(9) the method for providing each qualified taxpayer with a payment to offset the 
16.30 	burden on taxation of basic necessities as required by section 14;
16.31 	(10) any provisions necessary for administering the credits allowed in Minnesota 
16.32 	Statutes, section 297A.755;
16.33 	(11) provisions for reporting wages to the Social Security Administration;
16.34 	(12) the statutory, language, and cross-reference changes necessary to effect the 
16.35 	provisions of this act, including the repeal of all sections related to the prohibition of the 
16.36 	taxes in Minnesota Statutes, section 297A.625;
17.1 	(13) recommendations for changes in rate or duration for all local sales taxes to 
17.2 	reflect the expanded tax base under the fair tax;
17.3 	(14) recommendations for changes to existing local sales tax laws to allow their 
17.4 	administration with the fair tax; and
17.5 	(15) any other recommendation or provision necessary to effect the provisions 
17.6 	of this act.
17.7 		Subd. 2.Fair Tax Advisory Task Force. (a) The Fair Tax Advisory Task Force 
17.8 	shall provide advice to the commissioner of revenue related to the development of the 
17.9 	legislation required in subdivision 1.
17.10 	(b) The task force shall consist of the following individuals or their designees:
17.11 	(1) the commissioner of revenue;
17.12 	(2) three senators who serve on the committee having jurisdiction over taxes, chosen 
17.13 	by the Subcommittee on Committees of the senate Committee on Rules and Administration, 
17.14 	of which two appointees shall be from the majority party and one from the minority party;
17.15 	(3) three representatives who serve on the committee having jurisdiction over taxes, 
17.16 	chosen by the speaker of the house, of which two appointees shall be from the majority 
17.17 	party and one from the minority party;
17.18 	(4) one representative from the tax section of the Minnesota Bar Association, 
17.19 	selected by that association;
17.20 	(5) one representative from the Minnesota Society of Certified Public Accountants, 
17.21 	selected by that organization;
17.22 	(6) a representative from the Minnesota Retailers Association, selected by the 
17.23 	advisory task force;
17.24 	(7) a representative of the banking and credit union industry, selected by the 
17.25 	advisory board;
17.26 	(8) two private citizens chosen by the speaker of the house; and
17.27 	(9) two private citizens chosen by the majority leader of the senate.
17.28 	(c) The advisory task force may adopt procedures to govern its conduct and shall 
17.29 	select a chair from among its members. All members serve at the pleasure of their 
17.30 	appointing authority.
17.31 	(d) The advisory task force shall assist the commissioner in identifying specific 
17.32 	statutes and issues needed to be addressed in prohibiting the taxes listed in Minnesota 
17.33 	Statutes, section 297A.655 and replacing the lost revenues with the fair tax. It will 
17.34 	also review and offer recommendations on drafts of the legislation developed by the 
17.35 	commissioner under subdivision 1.
18.1 	(e) The commissioner may accept lawful grants and in-kind contributions from any 
18.2 	federal, state, or local source or legal business or individual for general operation support, 
18.3 	including personnel costs. The staff from the Department of Revenue shall provide the 
18.4 	primary staffing for the advisory task force, although senate and house of representatives 
18.5 	legislative staff may also provide assistance at the discretion of the senate and house of 
18.6 	representatives members.

18.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.8 	Sec. 13. FAIR TAX RATE.
 18.9 	The commissioner shall determine a method for setting the fair tax rate for the tax 
18.10 	required under this act to replace the anticipated state revenue loss due to the prohibition 
18.11 	of the taxes in Minnesota Statutes, section 297A.655, and the change from the existing 
18.12 	sales tax to the fair tax under this act. The commissioner shall determine the rate change 
18.13 	necessary to reduce the heritage tax rate by a revenue neutral amount as allowed under the 
18.14 	Minnesota Constitution, article XI, section 15. The rates determined under this section 
18.15 	shall be the tax rates under Minnesota Statutes, section 297A.62, subdivisions 1 and 1a, 
18.16 	for all sales and purchases made on or after January 1, 2018.

18.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.18 	Sec. 14. MONTHLY SALES TAX REBATE.
 18.19 	The commissioner shall determine a method for providing a monthly sales tax 
18.20 	rebate for each qualified person. The sales tax rebate must be distributed to each qualified 
18.21 	family on or before the first business day of the month for which the sales tax rebate is 
18.22 	being provided. The amount of the sales tax rebate must be determined annually and be 
18.23 	equal to the product of the rate of the sales tax established under Minnesota Statutes, 
18.24 	section 297A.62, and 1/12 of the annual poverty guidelines updated periodically in the 
18.25 	Federal Register by the United States Department of Health and Human Services under 
18.26 	the authority of United States Code, title 42, section 9902(2), as amended. If a qualified 
18.27 	family contains two qualified individuals, the amount of the sales tax rebate will be based 
18.28 	on the annual poverty guidelines for a family of one plus the annual poverty guidelines for 
18.29 	a family size equal to one less than the number of persons in the qualified family.

18.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
18.31 	and rebates under this section shall be paid beginning January 1, 2018.

18.32 	Sec. 15.  REPEALER.
 19.1 	(a) Minnesota Statutes 2014, sections 290.01, subdivisions 1, 1a, 2, 3, 3a, 3b, 4, 4a, 
19.2 	4c, 5, 5a, 5b, 6, 7, 7a, 7b, 8, 8a, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19a, 19b, 19c, 19d, 
19.3 	19f, 19h, 20, 22, 29, 29a, and 30; 290.014; 290.015; 290.02; 290.03; 290.032, subdivisions 
19.4 	1, 2, and 3; 290.04; 290.05, subdivisions 1, 2, 3, 4, and 8; 290.06, subdivisions 1, 2c, 2d, 
19.5 	22, 23, 27, 28, 29, 33, 35, and 36; 290.067, subdivisions 1, 2, 2a, 2b, 3, and 4; 290.0671, 
19.6 	subdivisions 1a, 2, 4, 5, 6, and 7; 290.0672; 290.0674, subdivisions 1, 2, 4, and 5; 
19.7 	290.0675, subdivisions 1, 2, 3, and 4; 290.0677; 290.0679; 290.068, subdivisions 1, 2, 
19.8 	3, 4, 5, 6a, and 7; 290.0681; 290.0692; 290.07, subdivisions 1, 2, 4, and 7; 290.0802; 
19.9 	290.081; 290.091; 290.0921, subdivisions 1, 2, 3, 3a, 4, 6, and 8; 290.0922; 290.093; 
19.10 	290.095, subdivisions 1, 2, 3, 4, 5, 9, and 11; 290.10; 290.17, subdivisions 1, 2, 3, 4, 5, 
19.11 	and 6; 290.172; 290.191, subdivisions 1, 2, 3, 5, 6, 8, 9, 10, 11, and 12; 290.20; 290.21, 
19.12 	subdivisions 1 and 4; 290.22; 290.26, subdivision 6; 290.281, subdivision 1; 290.30; 
19.13 	290.31, subdivisions 1 and 27; 290.311, subdivision 1; 290.32; 290.34, subdivisions 1 and 
19.14 	2; 290.36; 290.371, subdivisions 1, 2, 3, and 4; 290.431; 290.432; 290.48, subdivision 10; 
19.15 	290.491; 290.62; 290.92, subdivisions 1, 2a, 3, 4, 4a, 4b, 4c, 5, 5a, 9, 10, 12, 16, 17, 19, 
19.16 	20, 21, 24, 25, 26, 27, 28, 29, and 30; 290.9201, subdivisions 1, 2, 6, 7, 8, and 11; 290.923, 
19.17 	subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 290.9705, subdivisions 1, 3, and 4; 290.9725; 
19.18 	290.9726, subdivisions 1, 2, and 4; 290.9727; 290.9728; 290.9729; 290.9741; 290.9742; 
19.19 	290.9743; 290.9744; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 
19.20 	297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; 297D.13; 297F.01; 297F.02; 
19.21 	297F.03; 297F.031; 297F.04; 297F.05; 297F.06; 297F.07; 297F.08, subdivisions 1, 2, 3, 4, 
19.22 	5, 6, 7, 8, 8a, 9, 10, 12, and 13; 297F.09, subdivisions 1, 2, 3, 4, 4a, 5, 7, 8, 9, and 10; 
19.23 	297F.10; 297F.11; 297F.12; 297F.13; 297F.14; 297F.15, subdivisions 9 and 10; 297F.17; 
19.24 	297F.18; 297F.185; 297F.19, subdivisions 1, 2, 3, 5, 6, 7, 8, and 9; 297F.20; 297F.21, 
19.25 	subdivisions 1, 2, and 3; 297F.23; 297F.24; 297F.25; 297G.01; 297G.02; 297G.03; 
19.26 	297G.031; 297G.032; 297G.04; 297G.05; 297G.06; 297G.07; 297G.08; 297G.09, 
19.27 	subdivisions 1, 2, 3, 4, 6, 7, 8, 9, and 10; 297G.10; 297G.11; 297G.12; 297G.13; 297G.14, 
19.28 	subdivision 9; 297G.16; 297G.17; 297G.18, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 11; 
19.29 	297G.19; 297G.20, subdivisions 1, 2, 3, and 4; 297G.22; 297H.01; 297H.02; 297H.03; 
19.30 	297H.04; 297H.05; 297H.06; 297H.07; 297H.08; 297H.09; 297H.10, subdivision 1; 
19.31 	297H.11; 297H.115; 297H.12; 297H.13, subdivisions 1, 2, and 5; 297I.01; 297I.05, 
19.32 	subdivisions 1, 2, 3, 4, 5, 7, 11, 12, 13, and 14; 297I.06; 297I.10, subdivisions 1, 3, and 4; 
19.33 	297I.11; 297I.15; 297I.20; 297I.25; 297I.30, subdivisions 1, 2, 7, 8, 9, and 10; 297I.35; 
19.34 	297I.40; 297I.60; 297I.65; 297I.70; 297I.75; 297I.80; 297I.85; and 297I.90, are repealed.
19.35 	(b) Minnesota Statutes 2015 Supplement, sections 290.01, subdivisions 19 and 31; 
19.36 	and 290.0671, subdivisions 1 and 6a, are repealed.
20.1 	(c) Minnesota Statutes 2014, sections 297A.61, subdivisions 3, 4, 10, 12, 13, 16a, 
20.2 	16b, 16c, 17, 17a, 17b, 18, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 41, 42, 44, 45, 46, 
20.3 	and 49; 297A.62, subdivision 3; 297A.63, subdivision 2; 297A.64, subdivisions 1, 2, 3, 4, 
20.4 	and 5; 297A.65; 297A.67, subdivisions 2, 3, 4, 5, 6, 7, 7a, 8, 9, 10, 11, 12, 13a, 14, 15, 16, 
20.5 	17, 18, 19, 20, 21, 23, 25, 26, 27, 28, 29, 31, and 32; 297A.68, subdivisions 1, 3, 4, 6, 7, 8, 
20.6 	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, 
20.7 	40, 42, 43, and 44; 297A.69, subdivisions 1, 2, 3, 4, 6, and 7; 297A.70, subdivisions 1, 3, 4, 
20.8 	5, 6, 7, 8, 9, 9a, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19; 297A.71, subdivisions 1, 3, 6, 8, 
20.9 	11, 12, 13, 14, 22, 23, 34, 35, 40, 42, 43, 44, 45, 46, 47, and 48; and 297A.75, are repealed.
20.10 	(d) Minnesota Statutes 2015 Supplement, sections 297A.67, subdivision 13; 
20.11 	297A.68, subdivisions 2 and 5; and 297A.70, subdivision 2, are repealed.

20.12 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective for all taxable years 
20.13 	beginning after December 31, 2017. Paragraphs (c) and (d) are effective for sales and 
20.14 	purchases made after December 31, 2017.