1.1 	A bill for an act
1.2 	relating to taxation; sales and use; exempting certain
1.3 	sales to counties that support certain judicial
1.4 	functions; amending Minnesota Statutes 2004, sections
1.5 	297A.70, subdivision 3; 297A.71, by adding a
1.6 	subdivision; 297A.75.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 297A.70,
1.9 	subdivision 3, is amended to read:
1.10 		Subd. 3.Sales of certain goods and services to
1.11 	government.  (a) The following sales to or use by the specified
1.12 	governments and political subdivisions of the state are exempt:
1.13 	(1) repair and replacement parts for emergency rescue
1.14 	vehicles, fire trucks, and fire apparatus to a political
1.15 	subdivision;
1.16 	(2) machinery and equipment, except for motor vehicles,
1.17 	used directly for mixed municipal solid waste management
1.18 	services at a solid waste disposal facility as defined in
1.19 	section 115A.03, subdivision 10;
1.20 	(3) chore and homemaking services to a political
1.21 	subdivision of the state to be provided to elderly or disabled
1.22 	individuals;
1.23 	(4) telephone services to the Department of Administration
1.24 	that are used to provide telecommunications services through the
1.25 	intertechnologies revolving fund;
1.26 	(5) firefighter personal protective equipment as defined in
2.1 	paragraph (b), if purchased or authorized by and for the use of
2.2 	an organized fire department, fire protection district, or fire
2.3 	company regularly charged with the responsibility of providing
2.4 	fire protection to the state or a political subdivision;
2.5 	(6) bullet-resistant body armor that provides the wearer
2.6 	with ballistic and trauma protection, if purchased by a law
2.7 	enforcement agency of the state or a political subdivision of
2.8 	the state, or a licensed peace officer, as defined in section
2.9 	626.84, subdivision 1;
2.10 	(7) motor vehicles purchased or leased by political
2.11 	subdivisions of the state if the vehicles are exempt from
2.12 	registration under section 168.012, subdivision 1, paragraph
2.13 	(b), exempt from taxation under section 473.448, or exempt from
2.14 	the motor vehicle sales tax under section 297B.03, clause (12);
2.15 	(8) equipment designed to process, dewater, and recycle
2.16 	biosolids for wastewater treatment facilities of political
2.17 	subdivisions, and materials incidental to installation of that
2.18 	equipment; ~~and~~ 
2.19 	(9) sales to a town of gravel and of machinery, equipment,
2.20 	and accessories, except motor vehicles, used exclusively for
2.21 	road and bridge maintenance, and leases by a town of motor
2.22 	vehicles exempt from tax under section 297B.03, clause (10); and 
2.23 	(10) sales to a county to operate and maintain county
2.24 	judicial facilities occupied by employees who are state court
2.25 	employees, including electricity, gas, and other fuels used for
2.26 	operation of equipment, lighting, and space heating and cooling.
2.27 	(b) For purposes of this subdivision, "firefighters
2.28 	personal protective equipment" means helmets, including face
2.29 	shields, chin straps, and neck liners; bunker coats and pants,
2.30 	including pant suspenders; boots; gloves; head covers or hoods;
2.31 	wildfire jackets; protective coveralls; goggles; self-contained
2.32 	breathing apparatus; canister filter masks; personal alert
2.33 	safety systems; spanner belts; optical or thermal imaging search
2.34 	devices; and all safety equipment required by the Occupational
2.35 	Safety and Health Administration.
2.36 	
EFFECTIVE DATE. This section is effective for sales and
3.1 	purchases made after June 30, 2005.

3.2 	Sec. 2. Minnesota Statutes 2004, section 297A.71, is
3.3 	amended by adding a subdivision to read:
3.4 		Subd. 33.County judicial buildings. Materials and
3.5 	supplies used or consumed in, and equipment incorporated into,
3.6 	the construction, expansion, remodeling, or improvement of a
3.7 	county judicial facility occupied or to be occupied by employees
3.8 	who are state court employees.
3.9 	
EFFECTIVE DATE. This section is effective for sales and
3.10 	purchases made after June 30, 2005.

3.11 	Sec. 3. Minnesota Statutes 2004, section 297A.75, is
3.12 	amended to read:
3.13 	297A.75 REFUND; APPROPRIATION.
3.14 		Subdivision 1.Tax collected. The tax on the gross
3.15 	receipts from the sale of the following exempt items must be
3.16 	imposed and collected as if the sale were taxable and the rate
3.17 	under section 297A.62, subdivision 1, applied.  The exempt items
3.18 	include:
3.19 	(1) capital equipment exempt under section 297A.68,
3.20 	subdivision 5;
3.21 	(2) building materials for an agricultural processing
3.22 	facility exempt under section 297A.71, subdivision 13;
3.23 	(3) building materials for mineral production facilities
3.24 	exempt under section 297A.71, subdivision 14;
3.25 	(4) building materials for correctional facilities under
3.26 	section 297A.71, subdivision 3;
3.27 	(5) building materials used in a residence for disabled
3.28 	veterans exempt under section 297A.71, subdivision 11;
3.29 	(6) chair lifts, ramps, elevators, and associated building
3.30 	materials exempt under section 297A.71, subdivision 12;
3.31 	(7) building materials for the Long Lake Conservation
3.32 	Center exempt under section 297A.71, subdivision 17;
3.33 	(8) materials, supplies, fixtures, furnishings, and
3.34 	equipment for a county law enforcement and family service center
3.35 	under section 297A.71, subdivision 26; ~~and~~ 
3.36 	(9) materials and supplies for qualified low-income housing
4.1 	under section 297A.71, subdivision 23; and 
4.2 	(10) building materials, supplies, and equipment for county
4.3 	judicial facilities under section 297A.71, subdivision 33.
4.4 		Subd. 2.Refund; eligible persons. Upon application on
4.5 	forms prescribed by the commissioner, a refund equal to the tax
4.6 	paid on the gross receipts of the exempt items must be paid to
4.7 	the applicant.  Only the following persons may apply for the
4.8 	refund:
4.9 	(1) for subdivision 1, clauses (1) to (3), the applicant
4.10 	must be the purchaser;
4.11 	(2) for subdivision 1, clauses (4), (7), and (8), the
4.12 	applicant must be the governmental subdivision;
4.13 	(3) for subdivision 1, clause (5), the applicant must be
4.14 	the recipient of the benefits provided in United States Code,
4.15 	title 38, chapter 21;
4.16 	(4) for subdivision 1, clause (6), the applicant must be
4.17 	the owner of the homestead property; ~~and~~ 
4.18 	(5) for subdivision 1, clause (9), the owner of the
4.19 	qualified low-income housing project; and 
4.20 	(6) for subdivision 1, clause (10), the applicant must be
4.21 	the county.
4.22 		Subd. 3.Application. (a) The application must include
4.23 	sufficient information to permit the commissioner to verify the
4.24 	tax paid.  If the tax was paid by a contractor, subcontractor,
4.25 	or builder, under subdivision 1, clause (4), (5), (6), (7), (8),
4.26 	~~or~~ (9), or (10),the contractor, subcontractor, or builder must
4.27 	furnish to the refund applicant a statement including the cost
4.28 	of the exempt items and the taxes paid on the items unless
4.29 	otherwise specifically provided by this subdivision.  The
4.30 	provisions of sections 289A.40 and 289A.50 apply to refunds
4.31 	under this section.
4.32 	(b) An applicant may not file more than two applications
4.33 	per calendar year for refunds for taxes paid on capital
4.34 	equipment exempt under section 297A.68, subdivision 5.
4.35 		Subd. 4.Interest. Interest must be paid on the refund
4.36 	at the rate in section 270.76 from 90 days after the refund
5.1 	claim is filed with the commissioner for taxes paid under
5.2 	subdivision 1.
5.3 		Subd. 5.Appropriation. The amount required to make the
5.4 	refunds is annually appropriated to the commissioner.
5.5 	
EFFECTIVE DATE. This section is effective for sales and
5.6 	purchases made after June 30, 2005.