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HF 3819

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/28/2022 02:12pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/28/2022

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; modifying exemption provisions for construction
materials by certain contractors; adding a refund provision; amending Minnesota Statutes 2020, section 297A.71, by adding a subdivision; Minnesota Statutes 2021 Supplement, section 297A.75, subdivisions 1, 2, 3.

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

Section 1.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 54. new text end

new text begin Construction materials purchased by contractors; exemption for certain
projects at the Minneapolis-St. Paul International Airport.
new text end

new text begin (a) Materials and supplies
used in, and equipment incorporated into, the construction, reconstruction, repair,
maintenance, or improvement of public infrastructure at the Minneapolis-St. Paul
International Airport purchased by a contractor or subcontractor for the following projects
are exempt if purchased after June 30, 2022, and on or before December 31, 2024:
new text end

new text begin (1) security improvements to the rental automobile quick turn-around facility at Terminal
1;
new text end

new text begin (2) replacing air handling units at Terminal 1 and Terminal 2;
new text end

new text begin (3) improvements to the C concourse loading dock at Terminal 1;
new text end

new text begin (4) lighting upgrades to LED;
new text end

new text begin (5) restroom upgrades at Terminal 1;
new text end

new text begin (6) renovation of mechanical rooms in Terminal 1, a MAC storage facility, and a liquid
deicer storage facility;
new text end

new text begin (7) a new trades storage facility;
new text end

new text begin (8) new liquid deicer storage facility; and
new text end

new text begin (9) Terminal 1 passenger arrivals and departures replacement, rehabilitation, and
operational improvements.
new text end

new text begin (b) The tax on purchases exempt under this subdivision must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
provided in section 297A.75.
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. 2.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 1, is amended
to read:


Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14
;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23
;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion of
a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;

(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);

(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44
;

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;

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

(18) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving a fire station, police station, or related facilities exempt under section 297A.71,
subdivision 53deleted text begin.deleted text endnew text begin; and
new text end

new text begin (19) building construction or reconstruction materials, supplies, and equipment purchased
for qualifying projects at the Minneapolis-St. Paul International Airport under section
297A.71, subdivision 54.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2022.
new text end

Sec. 3.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 2, is amended
to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business;

(8) for subdivision 1, clauses (9), (10), (13), (17), and (18), the applicant must be the
governmental entity that owns or contracts for the project or facility; deleted text beginand
deleted text end

(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
building or projectdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (10) for subdivision 1, clause (19), the applicant must be an airport commission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2022.
new text end

Sec. 4.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 3, is amended
to read:


Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13) or (15) to deleted text begin(18)deleted text endnew text begin (19)new text end, the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2022.
new text end