1.1 	A bill for an act
1.2 	relating to taxation; sales and use; expanding exemption for public safety radio 
1.3 	communication system;amending Minnesota Statutes 2010, sections 297A.70, 
1.4 	subdivision 8; 297A.75, subdivisions 1, 2, 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to 
1.7 	read:
1.8 		Subd. 8.Regionwide public safety radio communication system; products and 
1.9 	services. Products and services including, but not limited to, end user equipment used 
1.10 	for construction, ownership, operation, maintenance, and enhancement of the backbone 
1.11 	system of the regionwide public safety radio communication system established under 
1.12 	sections 403.21 to 403.40, are exempt. For purposes of this subdivision, backbone system 
1.13 	is defined in section 403.21, subdivision 9. ~~This subdivision is effective for purchases,~~ 
1.14 	~~sales, storage, use, or consumption for use in the first and second phases of the system, as~~ 
1.15 	~~defined in section 403.21, subdivisions 3, 10, and 11, that portion of the third phase of~~ 
1.16 	~~the system that is located in the southeast district of the State Patrol and the counties of~~ 
1.17 	~~Benton, Sherburne, Stearns, and Wright, and that portion of the system that is located in~~ 
1.18 	~~Itasca County.~~

1.19 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
1.20 	made after January 1, 2010. Purchasers may apply for a refund of tax paid for qualifying 
1.21 	purchases under this subdivision made after January 1, 2010, and before July 1, 2011, in 
1.22 	the manner provided in section 297A.75.

1.23 	Sec. 2. Minnesota Statutes 2010, section 297A.75, subdivision 1, is amended to read:
2.1 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
2.2 	following exempt items must be imposed and collected as if the sale were taxable and the 
2.3 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
2.4 	(1) capital equipment exempt under section 297A.68, subdivision 5;
2.5 	(2) building materials for an agricultural processing facility exempt under section 
2.6 	297A.71, subdivision 13;
2.7 	(3) building materials for mineral production facilities exempt under section 
2.8 	297A.71, subdivision 14;
2.9 	(4) building materials for correctional facilities under section 297A.71, subdivision 
2.10 	3;
2.11 	(5) building materials used in a residence for disabled veterans exempt under section 
2.12 	297A.71, subdivision 11;
2.13 	(6) elevators and building materials exempt under section 297A.71, subdivision 12;
2.14 	(7) building materials for the Long Lake Conservation Center exempt under section 
2.15 	297A.71, subdivision 17;
2.16 	(8) materials and supplies for qualified low-income housing under section 297A.71, 
2.17 	subdivision 23;
2.18 	(9) materials, supplies, and equipment for municipal electric utility facilities under 
2.19 	section 297A.71, subdivision 35;
2.20 	(10) equipment and materials used for the generation, transmission, and distribution 
2.21 	of electrical energy and an aerial camera package exempt under section 297A.68, 
2.22 	subdivision 37;
2.23 	(11) tangible personal property and taxable services and construction materials, 
2.24 	supplies, and equipment exempt under section 297A.68, subdivision 41;
2.25 	(12) commuter rail vehicle and repair parts under section 297A.70, subdivision 
2.26 	3, clause (11);
2.27 	(13) materials, supplies, and equipment for construction or improvement of projects 
2.28 	and facilities under section 297A.71, subdivision 40;
2.29 	(14) materials, supplies, and equipment for construction or improvement of a meat 
2.30 	processing facility exempt under section 297A.71, subdivision 41; ~~and~~
2.31 	(15) materials, supplies, and equipment for construction, improvement, or expansion 
2.32 	of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 
2.33 	42~~.~~; and
2.34 	(16) products and services for a regionwide public safety radio communication 
2.35 	system exempt under section 297A.70, subdivision 8, purchased after January 1, 2010, 
2.36 	and before July 1, 2011.

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

3.2 	Sec. 3. Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:
3.3 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
3.4 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
3.5 	must be paid to the applicant. Only the following persons may apply for the refund:
3.6 	(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
3.7 	(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental 
3.8 	subdivision;
3.9 	(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits 
3.10 	provided in United States Code, title 38, chapter 21;
3.11 	(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead 
3.12 	property;
3.13 	(5) for subdivision 1, clause (8), the owner of the qualified low-income housing 
3.14 	project;
3.15 	(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or 
3.16 	a joint venture of municipal electric utilities;
3.17 	(7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying 
3.18 	business; and
3.19 	(8) for subdivision 1, clauses (12) ~~and~~, (13), and (16), the applicant must be the 
3.20 	governmental entity that owns or contracts for the project or facility.

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

3.22 	Sec. 4. Minnesota Statutes 2010, section 297A.75, subdivision 3, is amended to read:
3.23 		Subd. 3.Application. (a) The application must include sufficient information 
3.24 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
3.25 	subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), 
3.26 	(12), (13), (14), ~~or~~ (15), or (16), the contractor, subcontractor, or builder must furnish to 
3.27 	the refund applicant a statement including the cost of the exempt items and the taxes paid 
3.28 	on the items unless otherwise specifically provided by this subdivision. The provisions of 
3.29 	sections 289A.40 and 289A.50 apply to refunds under this section.
3.30 	(b) An applicant may not file more than two applications per calendar year for 
3.31 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
3.32 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
3.33 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
4.1 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
4.2 	subdivision 40, must not be filed until after June 30, 2009.

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