1.1                          A bill for an act 
  1.2             relating to taxation; exempting used watercraft from 
  1.3             the sales and use tax; amending Minnesota Statutes 
  1.4             1998, section 297A.25, by adding a subdivision.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 297A.25, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 79.  [USED WATERCRAFT.] The gross receipts from the 
  1.9   sale of used watercraft are exempt.  For purposes of this 
  1.10  subdivision: 
  1.11     (1) "watercraft" means any contrivance used or designed for 
  1.12  navigation on water, whether motorized or nonmotorized, but not 
  1.13  including seaplanes; and 
  1.14     (2) "used watercraft" means a watercraft that has 
  1.15  previously been sold at retail as defined in section 297A.01, 
  1.16  subdivision 4, on which either (i) a tax on the sales price was 
  1.17  paid as provided in this chapter, or (ii) the purchaser 
  1.18  presented an exemption certificate. 
  1.19     Sec. 2.  [EFFECTIVE DATE.] 
  1.20     Section 1 is effective for sales after June 30, 1999.