1.1 	A bill for an act
1.2 	relating to taxation; amending sales tax exemption for
1.3 	certain nonprofit tickets or admissions; amending
1.4 	Minnesota Statutes 2004, section 297A.70, subdivision
1.5 	10.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 297A.70,
1.8 	subdivision 10, is amended to read:
1.9 		Subd. 10.Nonprofit tickets or admissions.  (a) Tickets
1.10 	or admissions to an event are exempt if all the gross receipts
1.11 	are recorded as such, in accordance with generally accepted
1.12 	accounting principles, on the books of one or more organizations
1.13 	whose primary mission is to provide an opportunity for citizens
1.14 	of the state to participate in the creation, performance, or
1.15 	appreciation of the arts, and provided that each organization is:
1.16 	(1) an organization described in section 501(c)(3) of the
1.17 	Internal Revenue Code in which voluntary contributions make up
1.18 	at least the following percent of the organization's annual
1.19 	revenue in its most recently completed 12-month fiscal year, or
1.20 	in the current year if the organization has not completed a
1.21 	12-month fiscal year:
1.22 	(i) for sales made after July 31, 2001, and before July 1,
1.23 	2002, for the organization's fiscal year completed in calendar
1.24 	year 2000, three percent;
1.25 	(ii) for sales made on or after July 1, 2002, and on or
2.1 	before June 30, 2003, for the organization's fiscal year
2.2 	completed in calendar year 2001, three percent;
2.3 	(iii) for sales made on or after July 1, 2003, and on or
2.4 	before June 30, 2004, for the organization's fiscal year
2.5 	completed in calendar year 2002, four percent; and
2.6 	(iv) for sales made in each 12-month period, beginning on
2.7 	July 1, 2004, and each subsequent year, for the organization's
2.8 	fiscal year completed in the preceding calendar year, five
2.9 	percent;
2.10 	(2) a municipal board that promotes cultural and arts
2.11 	activities; or
2.12 	(3) the University of Minnesota, a state college and
2.13 	university, or a private nonprofit college or university 
2.14 	provided that the event is held at a university-owned facility
2.15 	owned by the educational institution holding the event.
2.16 	The exemption only applies if the entire proceeds, after
2.17 	reasonable expenses, are used solely to provide opportunities
2.18 	for citizens of the state to participate in the creation,
2.19 	performance, or appreciation of the arts.
2.20 	(b) Tickets or admissions to the premises of the Minnesota
2.21 	Zoological Garden are exempt, provided that the exemption under
2.22 	this paragraph does not apply to tickets or admissions to
2.23 	performances or events held on the premises unless the
2.24 	performance or event is sponsored and conducted exclusively by
2.25 	the Minnesota Zoological Board or employees of the Minnesota
2.26 	Zoological Garden.
2.27 	
EFFECTIVE DATE. This section is effective for tickets and
2.28 	admissions sold on or after July 1, 2005.