1998 Minnesota Statutes

CHAPTER 297A. General sales and use taxes

     297A.01 Definitions. 

    Subdivision 1.  The following words, terms, and phrases 
 when used in this chapter shall have the meanings ascribed to 
 them in this section except where the context clearly indicates 
 a different meaning. 

    Subd. 2.  "Person" includes any individual, partner, 
 officer, director, firm, partnership, joint venture, limited 
 liability company, association, cooperative, social club, 
 fraternal organization, municipal or private corporation whether 
 organized for profit or not, estate, trusts, business trusts, 
 receiver, trustee, syndicate, the United States, the state of 
 Minnesota, any political subdivision of Minnesota, or any other 
 group or combination acting as a unit, and the plural as well as 
 the singular number.  As used in the preceding sentence, the 
 term "person" includes, but is not limited to, directors and 
 officers of corporations, governors and managers of a limited 
 liability company, or members of partnerships who, either 
 individually or jointly with others, have the control, 
 supervision or responsibility of filing returns and making 
 payment of the amount of tax imposed by this chapter.  "Person" 
 shall also include any agent or consignee of any individual or 
 organization enumerated in this subdivision. 

    Subd. 3.  A "sale" and a "purchase" includes, but is not 
 limited to, each of the following transactions: 

    (a) Any transfer of title or possession, or both, of 
 tangible personal property, whether absolutely or conditionally, 
 and the leasing of or the granting of a license to use or 
 consume tangible personal property other than manufactured homes 
 used for residential purposes for a continuous period of 30 days 
 or more, for a consideration in money or by exchange or barter; 

    (b) The production, fabrication, printing, or processing of 
 tangible personal property for a consideration for consumers who 
 furnish either directly or indirectly the materials used in the 
 production, fabrication, printing, or processing; 

    (c) The furnishing, preparing, or serving for a 
 consideration of food, meals, or drinks.  "Sale" or "purchase" 
 does not include: 

    (1) meals or drinks served to patients, inmates, or persons 
 residing at hospitals, sanitariums, nursing homes, senior 
 citizens homes, and correctional, detention, and detoxification 
 facilities; 

    (2) meals or drinks purchased for and served exclusively to 
 individuals who are 60 years of age or over and their spouses or 
 to the handicapped and their spouses by governmental agencies, 
 nonprofit organizations, agencies, or churches or pursuant to 
 any program funded in whole or part through 42 USCA sections 
 3001 through 3045, wherever delivered, prepared or served; or 

    (3) meals and lunches served at public and private schools, 
 universities, or colleges. 

 Notwithstanding section 297A.25, subdivision 2, taxable food or 
 meals include, but are not limited to, the following:  

    (i) food or drinks sold by the retailer for immediate 
 consumption on the retailer's premises.  Food and drinks sold 
 within a building or grounds which require an admission charge 
 for entrance are presumed to be sold for consumption on the 
 premises; 

    (ii) food or drinks prepared by the retailer for immediate 
 consumption either on or off the retailer's premises.  For 
 purposes of this subdivision, "food or drinks prepared for 
 immediate consumption" includes any food product upon which an 
 act of preparation including, but not limited to, cooking, 
 mixing, sandwich making, blending, heating, or pouring has been 
 performed by the retailer so the food product may be immediately 
 consumed by the purchaser; 

    (iii) ice cream, ice milk, frozen yogurt products, or 
 frozen novelties sold in single or individual servings including 
 cones, sundaes, and snow cones.  For purposes of this 
 subdivision, "single or individual servings" does not include 
 products when sold in bulk containers or bulk packaging; 

    (iv) soft drinks and other beverages including all 
 carbonated and noncarbonated beverages or drinks sold in liquid 
 form except beverages or drinks which contain milk or milk 
 products, beverages or drinks containing 15 or more percent 
 fruit juice, and noncarbonated and noneffervescent bottled water 
 sold in individual containers of one-half gallon or more in 
 size; 

    (v) gum, candy, and candy products, except when sold for 
 fundraising purposes by a nonprofit organization that provides 
 educational and social activities primarily for young people 18 
 years of age and under; 

    (vi) ice; 

    (vii) all food sold from vending machines; 

    (viii) all food for immediate consumption sold from 
 concession stands and vehicles; 

    (ix) party trays; 

    (x) all meals and single servings of packaged snack food 
 sold in restaurants and bars; and 

    (xi) bakery products: 

    (A) prepared by the retailer for consumption on the 
 retailer's premises; 

    (B) sold at a place that charges admission; 

    (C) sold from vending machines; or 

    (D) sold in single or individual servings from concession 
 stands, vehicles, bars, and restaurants.  For purposes of this 
 subdivision, "single or individual servings" does not include 
 products when sold in bulk containers or bulk packaging.  

    For purposes of this subdivision, "premises" means the 
 total space and facilities, including buildings, grounds, and 
 parking lots that are made available or that are available for 
 use by the retailer or customer for the purpose of sale or 
 consumption of prepared food and drinks.  The premises of a 
 caterer is the place where the catered food or drinks are 
 served; 

    (d) The granting of the privilege of admission to places of 
 amusement, recreational areas, or athletic events, except a 
 world championship football game sponsored by the national 
 football league, and the privilege of having access to and the 
 use of amusement devices, tanning facilities, reducing salons, 
 steam baths, turkish baths, health clubs, and spas or athletic 
 facilities; 

    (e) The furnishing for a consideration of lodging and 
 related services by a hotel, rooming house, tourist court, motel 
 or trailer camp and of the granting of any similar license to 
 use real property other than the renting or leasing thereof for 
 a continuous period of 30 days or more; 

    (f) The furnishing for a consideration of electricity, gas, 
 water, or steam for use or consumption within this state, or 
 local exchange telephone service, intrastate toll service, and 
 interstate toll service, if that service originates from and is 
 charged to a telephone located in this state.  Telephone service 
 does not include services purchased with prepaid telephone 
 calling cards.  Telephone service includes paging services and 
 private communication service, as defined in United States Code, 
 title 26, section 4252(d), as amended through December 31, 1991, 
 except for private communication service purchased by an agent 
 acting on behalf of the state lottery.  The furnishing for a 
 consideration of access to telephone services by a hotel to its 
 guests is a sale under this clause.  Sales by municipal 
 corporations in a proprietary capacity are included in the 
 provisions of this clause.  The furnishing of water and sewer 
 services for residential use shall not be considered a sale.  
 The sale of natural gas to be used as a fuel in vehicles 
 propelled by natural gas shall not be considered a sale for the 
 purposes of this section; 

    (g) The furnishing for a consideration of cable television 
 services, including charges for basic service, charges for 
 premium service, and any other charges for any other 
 pay-per-view, monthly, or similar television services; 

    (h) The furnishing for a consideration of parking services, 
 whether on a contractual, hourly, or other periodic basis, 
 except for parking at a meter; 

    (i) The furnishing for a consideration of services listed 
 in this paragraph: 

    (i) laundry and dry cleaning services including cleaning, 
 pressing, repairing, altering, and storing clothes, linen 
 services and supply, cleaning and blocking hats, and carpet, 
 drapery, upholstery, and industrial cleaning.  Laundry and dry 
 cleaning services do not include services provided by coin 
 operated facilities operated by the customer; 

    (ii) motor vehicle washing, waxing, and cleaning services, 
 including services provided by coin-operated facilities operated 
 by the customer, and rustproofing, undercoating, and towing of 
 motor vehicles; 

    (iii) building and residential cleaning, maintenance, and 
 disinfecting and exterminating services; 

    (iv) detective services, security services, burglar, fire 
 alarm, and armored car services; but not including services 
 performed within the jurisdiction they serve by off-duty 
 licensed peace officers as defined in section 626.84, 
 subdivision 1, or services provided by a nonprofit organization 
 for monitoring and electronic surveillance of persons placed on 
 in-home detention pursuant to court order or under the direction 
 of the Minnesota department of corrections; 

    (v) pet grooming services; 

    (vi) lawn care, fertilizing, mowing, spraying and sprigging 
 services; garden planting and maintenance; tree, bush, and shrub 
 pruning, bracing, spraying, and surgery; indoor plant care; 
 tree, bush, shrub and stump removal; and tree trimming for 
 public utility lines.  Services performed under a construction 
 contract for the installation of shrubbery, plants, sod, trees, 
 bushes, and similar items are not taxable; 

    (vii) massages, except when provided by a licensed health 
 care facility or professional or upon written referral from a 
 licensed health care facility or professional for treatment of 
 illness, injury, or disease; and 

    (viii) the furnishing for consideration of lodging, board 
 and care services for animals in kennels and other similar 
 arrangements, but excluding veterinary and horse boarding 
 services. 

 The services listed in this paragraph are taxable under section 
 297A.02 if the service is performed wholly within Minnesota or 
 if the service is performed partly within and partly without 
 Minnesota and the greater proportion of the service is performed 
 in Minnesota, based on the cost of performance.  In applying the 
 provisions of this chapter, the terms "tangible personal 
 property" and "sales at retail" include taxable services and the 
 provision of taxable services, unless specifically provided 
 otherwise.  Services performed by an employee for an employer 
 are not taxable under this paragraph.  Services performed by a 
 partnership or association for another partnership or 
 association are not taxable under this paragraph if one of the 
 entities owns or controls more than 80 percent of the voting 
 power of the equity interest in the other entity.  Services 
 performed between members of an affiliated group of corporations 
 are not taxable.  For purposes of this section, "affiliated 
 group of corporations" includes those entities that would be 
 classified as a member of an affiliated group under United 
 States Code, title 26, section 1504, as amended through December 
 31, 1987, and who are eligible to file a consolidated tax return 
 for federal income tax purposes; 

    (j) A "sale" and a "purchase" includes the transfer of 
 computer software, meaning information and directions that 
 dictate the function performed by data processing equipment.  A 
 "sale" and a "purchase" does not include the design, 
 development, writing, translation, fabrication, lease, or 
 transfer for a consideration of title or possession of a custom 
 computer program; and 

    (k) The granting of membership in a club, association, or 
 other organization if: 

    (1) the club, association, or other organization makes 
 available for the use of its members sports and athletic 
 facilities (without regard to whether a separate charge is 
 assessed for use of the facilities); and 

    (2) use of the sports and athletic facilities is not made 
 available to the general public on the same basis as it is made 
 available to members.  

 Granting of membership includes both one-time initiation fees 
 and periodic membership dues.  Sports and athletic facilities 
 include golf courses, tennis, racquetball, handball and squash 
 courts, basketball and volleyball facilities, running tracks, 
 exercise equipment, swimming pools, and other similar athletic 
 or sports facilities.  The provisions of this paragraph do not 
 apply to camps or other recreation facilities owned and operated 
 by an exempt organization under section 501(c)(3) of the 
 Internal Revenue Code of 1986, as amended through December 31, 
 1992, for educational and social activities for young people 
 primarily age 18 and under.  

    Subd. 4.  (a) A "retail sale" or "sale at retail" means a 
 sale for any purpose other than resale in the regular course of 
 business.  

    (b) Property utilized by the owner only by leasing such 
 property to others or by holding it in an effort to so lease it, 
 and which is put to no use by the owner other than resale after 
 such lease or effort to lease, shall be considered property 
 purchased for resale.  

    (c) Master computer software programs that are purchased 
 and used to make copies for sale or lease are considered 
 property purchased for resale.  

    (d) Sales of building materials, supplies and equipment to 
 owners, contractors, subcontractors or builders for the erection 
 of buildings or the alteration, repair or improvement of real 
 property are "retail sales" or "sales at retail" in whatever 
 quantity sold and whether or not for purpose of resale in the 
 form of real property or otherwise.  

    (e) A sale of carpeting, linoleum, or other similar floor 
 covering which includes installation of the carpeting, linoleum, 
 or other similar floor covering is a contract for the 
 improvement of real property.  

    (f) A sale of shrubbery, plants, sod, trees, and similar 
 items that includes installation of the shrubbery, plants, sod, 
 trees, and similar items is a contract for the improvement of 
 real property.  

    (g) Aircraft and parts for the repair thereof purchased by 
 a nonprofit, incorporated flying club or association utilized 
 solely by the corporation by leasing such aircraft to 
 shareholders of the corporation shall be considered property 
 purchased for resale.  The leasing of the aircraft to the 
 shareholders by the flying club or association shall be 
 considered a sale.  Leasing of aircraft utilized by a lessee for 
 the purpose of leasing to others, whether or not the lessee also 
 utilizes the aircraft for flight instruction where no separate 
 charge is made for aircraft rental or for charter service, shall 
 be considered a purchase for resale; provided, however, that a 
 proportionate share of the lease payment reflecting use for 
 flight instruction or charter service is subject to tax pursuant 
 to section 297A.14. 

    (h) Tangible personal property that is awarded as prizes 
 shall not be considered property purchased for resale. 

    (i) Tangible personal property that is utilized or employed 
 in the furnishing or providing of services under section 
 297A.01, subdivision 3, paragraph (d), or in conducting lawful 
 gambling under chapter 349 or the state lottery under chapter 
 349A, including property given as promotional items, shall not 
 be considered property purchased for resale.  Machines, 
 equipment, or devices that are used to furnish, provide, or 
 dispense goods or services, including coin-operated devices, 
 shall not be considered property purchased for resale. 

    Subd. 5.  "Storage" includes any keeping or retention in 
 Minnesota for any purpose except sale in the regular course of 
 business or subsequent use solely outside Minnesota of tangible 
 personal property. 

    Subd. 6.  "Use" includes the exercise of any right or power 
 over tangible personal property, or tickets or admissions to 
 places of amusement or athletic events, purchased from a 
 retailer incident to the ownership of any interest in that 
 property, except that it does not include the sale of that 
 property in the regular course of business.  

    "Use" includes the consumption of printed materials which 
 are consumed in the creation of nontaxable advertising that is 
 distributed, either directly or indirectly, within Minnesota.  

    Subd. 7.  "Storage" and "use" do not include the keeping or 
 retaining in a public warehouse of tangible personal property or 
 tickets or admissions to places of amusement or athletic events 
 when shipped or brought into Minnesota by common carrier, for 
 the purpose of subsequently being transported outside Minnesota 
 and thereafter used solely outside Minnesota, except in the 
 course of interstate commerce.  

    Subd. 8.  "Sales price" means the total consideration 
 valued in money, for a retail sale whether paid in money or 
 otherwise, excluding therefrom any amount allowed as credit for 
 tangible personal property taken in trade for resale, without 
 deduction for the cost of the property sold, cost of materials 
 used, labor or service cost, interest, or discount allowed after 
 the sale is consummated, the cost of transportation incurred 
 prior to the time of sale, any amount for which credit is given 
 to the purchaser by the seller, or any other expense 
 whatsoever.  A deduction may be made for charges of up to 15 
 percent in lieu of tips, if the consideration for such charges 
 is separately stated.  No deduction shall be allowed for charges 
 for services that are part of a sale.  Except as otherwise 
 provided in this subdivision, a deduction may also be made for 
 interest, financing, or carrying charges, charges for labor or 
 services used in installing or applying the property sold or 
 transportation charges if the transportation occurs after the 
 retail sale of the property only if the consideration for such 
 charges is separately stated.  "Sales price," for purposes of 
 sales of ready-mixed concrete sold from a ready-mixed concrete 
 truck, includes any transportation, delivery, or other service 
 charges, and no deduction is allowed for those charges, whether 
 or not the charges are separately stated.  There shall not be 
 included in "sales price" cash discounts allowed and taken on 
 sales or the amount refunded either in cash or in credit for 
 property returned by purchasers. 

    Subd. 9.  "Gross receipts" means the total amount received, 
 in money or otherwise, for all sales at retail as measured by 
 the sales price.  Gross receipts from sales may, at the option 
 of the taxpayer, be reported on the cash basis as the 
 consideration is received or on the accrual basis as sales are 
 made. 

    Subd. 10.  "Retailer" includes every person engaged in 
 making sales at retail as herein defined. 

    Subd. 11.  "Tangible personal property" means corporeal 
 personal property of any kind whatsoever, including property 
 which is to become real property as a result of incorporation, 
 attachment, or installation following its acquisition. 

    Personal property does not include: 

    (a) large ponderous machinery and equipment used in a 
 business or production activity which at common law would be 
 considered to be real property; 

    (b) property which is subject to an ad valorem property 
 tax; 

    (c) property described in section 272.02, subdivision 1, 
 clause (8), paragraphs (a) to (d); 

    (d) property described in section 272.03, subdivision 2, 
 clauses (3) and (5). 

    Tangible personal property includes computer software, 
 whether contained on tape, discs, cards, or other devices.  
 Tangible personal property also includes prepaid telephone 
 calling cards.  For purposes of this chapter, "prepaid telephone 
 calling card" means any card or other similar arrangement, 
 including prepaid authorization numbers, which permit its holder 
 to obtain telephone services and pay for such services in 
 advance.  

    Subd. 12.  "Commissioner" means the commissioner of revenue 
 of the state of Minnesota. 

    Subd. 13.  "Agricultural production," as used in section 
 297A.25, subdivision 9, includes, but is not limited to, 
 horticulture; floriculture; raising of pets, fur bearing 
 animals, research animals, farmed cervidae, as defined in 
 section 17.451, subdivision 2, llamas, as defined in section 
 17.455, subdivision 2, ratitae, as defined in section 17.453, 
 subdivision 3, and horses. 

    Subd. 14.  "Handicapped" means a permanent and total 
 disability as defined in section 273.13, subdivision 22. 

    Subd. 15.  "Farm machinery" means new or used machinery, 
 equipment, implements, accessories, and contrivances used 
 directly and principally in the production for sale, but not 
 including the processing, of livestock, dairy animals, dairy 
 products, poultry and poultry products, fruits, vegetables, 
 forage, grains and bees and apiary products.  "Farm machinery"  
 includes: 

    (1) machinery for the preparation, seeding or cultivation 
 of soil for growing agricultural crops and sod, harvesting and 
 threshing of agricultural products, harvesting or mowing of sod, 
 and certain machinery for dairy, livestock and poultry farms; 

    (2) barn cleaners, milking systems, grain dryers, automatic 
 feeding systems and similar installations, whether or not the 
 equipment is installed by the seller and becomes part of the 
 real property; 

    (3) irrigation equipment sold for exclusively agricultural 
 use, including pumps, pipe fittings, valves, sprinklers and 
 other equipment necessary to the operation of an irrigation 
 system when sold as part of an irrigation system, whether or not 
 the equipment is installed by the seller and becomes part of the 
 real property; 

    (4) logging equipment, including chain saws used for 
 commercial logging; 

    (5) fencing used for the containment of farmed cervidae, as 
 defined in section 17.451, subdivision 2; 

    (6) primary and backup generator units used to generate 
 electricity for the purpose of operating farm machinery, as 
 defined in this subdivision, or providing light or space heating 
 necessary for the production of livestock, dairy animals, dairy 
 products, or poultry and poultry products; and 

    (7) aquaculture production equipment as defined in 
 subdivision 19.  

    Repair or replacement parts for farm machinery shall not be 
 included in the definition of farm machinery.  

    Tools, shop equipment, grain bins, feed bunks, fencing 
 material except fencing material covered by clause (5), 
 communication equipment and other farm supplies shall not be 
 considered to be farm machinery.  "Farm machinery" does not 
 include motor vehicles taxed under chapter 297B, snowmobiles, 
 snow blowers, lawn mowers except those used in the production of 
 sod for sale, garden-type tractors or garden tillers and the 
 repair and replacement parts for those vehicles and machines. 

    Subd. 16.    Capital equipment.  (a) Capital equipment 
 means machinery and equipment purchased or leased for use in 
 this state and used by the purchaser or lessee primarily for 
 manufacturing, fabricating, mining, or refining tangible 
 personal property to be sold ultimately at retail and for 
 electronically transmitting results retrieved by a customer of 
 an on-line computerized data retrieval system.  

    (b) Capital equipment includes all machinery and equipment 
 that is essential to the integrated production process.  Capital 
 equipment includes, but is not limited to: 

    (1) machinery and equipment used or required to operate, 
 control, or regulate the production equipment; 

    (2) machinery and equipment used for research and 
 development, design, quality control, and testing activities; 

    (3) environmental control devices that are used to maintain 
 conditions such as temperature, humidity, light, or air pressure 
 when those conditions are essential to and are part of the 
 production process; 

    (4) materials and supplies necessary to construct and 
 install machinery or equipment; 

    (5) repair and replacement parts, including accessories, 
 whether purchased as spare parts, repair parts, or as upgrades 
 or modifications to machinery or equipment; 

    (6) materials used for foundations that support machinery 
 or equipment; 

    (7) materials used to construct and install special purpose 
 buildings used in the production process; or 

    (8) ready-mixed concrete trucks in which the ready-mixed 
 concrete is mixed as part of the delivery process. 

    (c) Capital equipment does not include the following: 

    (1) motor vehicles taxed under chapter 297B; 

    (2) machinery or equipment used to receive or store raw 
 materials; 

    (3) building materials; 

    (4) machinery or equipment used for nonproduction purposes, 
 including, but not limited to, the following:  machinery and 
 equipment used for plant security, fire prevention, first aid, 
 and hospital stations; machinery and equipment used in support 
 operations or for administrative purposes; machinery and 
 equipment used solely for pollution control, prevention, or 
 abatement; and machinery and equipment used in plant cleaning, 
 disposal of scrap and waste, plant communications, space 
 heating, lighting, or safety; 

    (5) "farm machinery" as defined by subdivision 15, and 
 "aquaculture production equipment" as defined by subdivision 19; 
 or 

    (6) any other item that is not essential to the integrated 
 process of manufacturing, fabricating, mining, or refining. 

    (d) For purposes of this subdivision: 

    (1) "Equipment" means independent devices or tools separate 
 from machinery but essential to an integrated production 
 process, including computers and software, used in operating, 
 controlling, or regulating machinery and equipment; and any 
 subunit or assembly comprising a component of any machinery or 
 accessory or attachment parts of machinery, such as tools, dies, 
 jigs, patterns, and molds. 

    (2) "Fabricating" means to make, build, create, produce, or 
 assemble components or property to work in a new or different 
 manner. 

    (3) "Machinery" means mechanical, electronic, or electrical 
 devices, including computers and software, that are purchased or 
 constructed to be used for the activities set forth in paragraph 
 (a), beginning with the removal of raw materials from inventory 
 through the completion of the product, including packaging of 
 the product. 

    (4) "Manufacturing" means an operation or series of 
 operations where raw materials are changed in form, composition, 
 or condition by machinery and equipment and which results in the 
 production of a new article of tangible personal property.  For 
 purposes of this subdivision, "manufacturing" includes the 
 generation of electricity or steam to be sold at retail. 

    (5) "Mining" means the extraction of minerals, ores, stone, 
 and peat. 

    (6) "On-line data retrieval system" means a system whose 
 cumulation of information is equally available and accessible to 
 all its customers. 

    (7) "Pollution control equipment" means machinery and 
 equipment used to eliminate, prevent, or reduce pollution 
 resulting from an activity described in paragraph (a). 

    (8) "Primarily" means machinery and equipment used 50 
 percent or more of the time in an activity described in 
 paragraph (a). 

    (9) "Refining" means the process of converting a natural 
 resource to a product, including the treatment of water to be 
 sold at retail. 

    (e) For purposes of this subdivision the requirement that 
 the machinery or equipment "must be used by the purchaser or 
 lessee" means that the person who purchases or leases the 
 machinery or equipment must be the one who uses it for the 
 qualifying purpose.  When a contractor buys and installs 
 machinery or equipment as part of an improvement to real 
 property, only the contractor is considered the purchaser. 

    Subd. 17.    Special tooling.  Special tooling means 
 tools, dies, jigs, patterns, gauges and other special tools 
 which have value and use only for the buyer and for the use for 
 which it is made.  An item has use or value only to the buyer if 
 the item is not standard enough to be stocked or ordered from a 
 catalog or other sales literature, but must be produced in 
 accordance with special requirements peculiar to the buyer and 
 not common to someone else whose conditions for possible use of 
 the material are reasonably similar to the buyer's.  

    Subd. 18.    Custom computer program.  "Custom computer 
 program" means a computer program prepared to the special order 
 of the customer, either in the form of written procedures or in 
 the form of storage media on which, or in which, the program is 
 recorded, or any required documentation or manuals designed to 
 facilitate the use of the custom computer program transferred.  
 It includes those services represented by separately stated 
 charges for modifications to an existing prewritten program that 
 are prepared to the special order of the customer.  It does not 
 include a "canned" or prewritten computer program that is held 
 or existing for general or repeated sale or lease, even if the 
 prewritten or "canned" program was initially developed on a 
 custom basis or for in-house use.  Modification to an existing 
 prewritten program to meet the customer's needs is custom 
 computer programming only to the extent of the modification.  
 For purposes of this subdivision: 

    (1) "Storage media" includes punched cards, tapes, discs, 
 diskettes, or drums on which computer programs may be embodied 
 or stored; 

    (2) "Computer" does not include tape-controlled automatic 
 drilling, milling, or other manufacturing machinery or 
 equipment; and 

    (3) "Computer program" means the complete plan for the 
 solution of a problem, such as the complete sequence of 
 automatic data processing equipment instructions necessary to 
 solve a problem and includes both systems and application 
 programs and subdivisions, such as assemblers, compilers, 
 routines, generators, and utility programs. 

    Subd. 19.    Aquaculture production equipment.  
 "Aquaculture production equipment" means new or used machinery, 
 equipment, implements, accessories, and contrivances used 
 directly and principally in aquaculture production.  Aquaculture 
 production equipment includes:  augers and blowers, automatic 
 feed systems, manual feeding equipment, shockers, gill nets, 
 trap nets, seines, box traps, round nets and traps, net pens, 
 dip nets, net washers, floating net supports, floating access 
 walkways, net supports and walkways, growing tanks, holding 
 tanks, troughs, raceways, transport tanks, egg taking equipment, 
 egg hatcheries, egg incubators, egg baskets and troughs, egg 
 graders, egg counting equipment, fish counting equipment, fish 
 graders, fish pumps and loaders, fish elevators, air blowers, 
 air compressors, oxygen generators, oxygen regulators, diffusers 
 and injectors, air supply equipment, oxygenation columns, water 
 coolers and heaters, heat exchangers, water filter systems, 
 water purification systems, waste collection equipment, feed 
 mills, portable scales, feed grinders, feed mixers, feed carts 
 and trucks, power feed wagons, fertilizer spreaders, fertilizer 
 tanks, forage collection equipment, land levelers, loaders, post 
 hole diggers, disc, harrow, plow, and water diversion devices.  
 Repair or replacement parts for aquaculture production equipment 
 shall not be included in the definition of aquaculture 
 production equipment. 

    Subd. 20. Repealed, 1997 c 231 art 7 s 46 

    Subd. 21. Repealed, 1997 c 231 art 13 s 20 

    Subd. 22.    Leasing.  "Leasing" includes all transfers 
 of possession of tangible personal property or the use thereof 
 by the lessee for a consideration when title remains with the 
 lessor at the end of the lease.  If a contract designated as a 
 lease binds the lessee for a fixed term and the lessee is to 
 obtain title at the end of the term of the agreement or has the 
 option at that time to purchase the property for a nominal 
 amount, the contract is regarded as a sale and not as a lease.  
 For purposes of this chapter, a lease of tangible personal 
 property is a series of transactions that impose upon the lessee 
 multiple payment obligations.  A taxable transaction is 
 considered to have occurred when an obligation to make a lease 
 payment becomes due under the terms of the agreement or trade 
 practices of the lessor.  For purposes of this subdivision, 
 "nominal amount" means an amount so small, slight, or negligible 
 that it is not economically significant and bears no relation to 
 the real value of the item being purchased. 

    HIST: Ex1967 c 32 art 13 s 1; 1969 c 62 s 1,2; 1969 c 571 s 
 1,2; 1969 c 634 s 1; Ex1971 c 31 art 1 s 1; 1973 c 36 s 1; 1973 
 c 582 s 3; 1975 c 312 s 1,2; 1975 c 397 s 1; 1977 c 363 s 1; 
 1979 c 303 art 9 s 1; 1980 c 607 art 5 s 1; 1Sp1981 c 1 art 4 s 
 1,2; 1982 c 523 art 34 s 1; 1982 c 641 art 2 s 4; 3Sp1982 c 1 
 art 6 s 1; 1983 c 327 s 1,2; 1984 c 502 art 6 s 1-3; 1984 c 655 
 art 1 s 53; 1985 c 83 s 1; 1Sp1985 c 14 art 2 s 6; art 4 s 90; 
 1987 c 268 art 4 s 1-6; 1987 c 400 s 52; 1988 c 719 art 10 s 1; 
 1Sp1989 c 1 art 12 s 2; art 19 s 3; 1990 c 480 art 4 s 3,4; 1990 
 c 604 art 6 s 1,2; 1991 c 291 art 8 s 7-10; 1991 c 309 s 14; 
 1993 c 137 s 10; 1993 c 375 art 1 s 4; art 8 s 14; art 9 s 
 22-25; 1994 c 416 art 3 s 1; 1994 c 510 art 3 s 9; 1994 c 587 
 art 2 s 2,3; 1995 c 264 art 2 s 22,23; art 17 s 2; 1997 c 31 art 
 2 s 6; 1997 c 84 art 3 s 3; 1997 c 231 art 7 s 4-8; art 13 s 2; 
 1998 c 300 art 2 s 2,3; 1998 c 389 art 8 s 1-3 

*   NOTE:  The amendment to subdivision 15 by Laws 1998, 
*chapter 389, article 8, section 2, is effective for sales made 
*after June 30, 2000.  Laws 1998, chapter 389, article 8, section 
*48.

     297A.02 Imposition of tax. 

    Subdivision 1.    Generally.  Except as otherwise 
 provided in this chapter, there is imposed an excise tax of 6.5 
 percent of the gross receipts from sales at retail made by any 
 person in this state. 

    Subd. 2.    Machinery and equipment.  Notwithstanding 
 the provisions of subdivision 1, the rate of the excise tax 
 imposed upon sales of farm machinery and aquaculture production 
 equipment is 2.0 percent for sales after June 30, 1998, and 
 before July 1, 1999, and 1.0 percent for sales after June 30, 
 1999, and before July 1, 2000. 

    Subd. 3.    Liquor and beer sales.  Notwithstanding the 
 provisions of subdivision 1, the rate of the excise tax imposed 
 upon sales of intoxicating liquor, as defined in section 
 340A.101, subdivision 14, and 3.2 percent malt liquor, as 
 defined in section 340A.101, subdivision 19, shall be nine 
 percent.  The 3.2 percent malt liquor is subject to taxation 
 under this subdivision only when sold at an on-sale or off-sale 
 municipal liquor store or other establishment licensed to sell 
 any type of intoxicating liquor.  

    Subd. 4.    Manufactured housing and park trailers.  
 Notwithstanding the provisions of subdivision 1, for sales at 
 retail of manufactured homes as defined in section 327.31, 
 subdivision 6, that are used for residential purposes, the 
 excise tax is imposed upon 65 percent of the dealer's cost of 
 the home, and for sales of new and used park trailers, as 
 defined in section 168.011, subdivision 8, paragraph (b), the 
 excise tax is imposed upon 65 percent of the sales price of the 
 park trailer. 

    Subd. 5.  Repealed, 1997 c 231 art 7 s 46 

    HIST: Ex1967 c 32 art 13 s 2; Ex1971 c 31 art 1 s 2; 1Sp1981 c 
 1 art 4 s 3; 3Sp1981 c 2 art 5 s 1; 3Sp1982 c 1 art 6 s 2; 1983 
 c 342 art 6 s 4; 1984 c 502 art 6 s 4,5; 1984 c 655 art 1 s 54; 
 1Sp1985 c 14 art 2 s 7; 1987 c 384 art 2 s 1; 1Sp1989 c 1 art 12 
 s 3; 1991 c 249 s 31; 1991 c 291 art 8 s 11; 1991 c 309 s 15; 
 1994 c 483 s 1; 1994 c 587 art 2 s 4; 1995 c 264 art 2 s 24; 
 1996 c 471 art 2 s 11; 1998 c 389 art 8 s 4,5 

*   NOTE:  The repeal of subdivision 2 by Laws 1998, chapter 
*389, article 8, section 47, is effective for sales made after 
*June 30, 2000.  Laws 1998, chapter 389, article 8, section 48.

  297A.021 Repealed, 1994 c 587 art 2 s 22 

     297A.022 Coordination of state and local sales tax rates.

    In preparing and distributing a sales tax schedule for use 
 within a local jurisdiction with a separate general sales tax, 
 the state department of revenue shall coordinate the state, 
 local option, and local sales tax so that a sale of $1 reflects 
 a tax equal to the combination of the state, local option, and 
 local sales tax rate.  The combined sales tax on other sales 
 amounts shall also reflect the coordinated rather than the 
 separate effects of the three sales taxes.  The schedule must be 
 coordinated as long as the local sales tax is in effect.  If the 
 sales tax percentage is changed for any of the taxes, the 
 schedule shall be adjusted to reflect the change. 

    HIST: 1994 c 587 art 2 s 5 

     297A.023 Remittance of amounts collected as taxes. 

    Any amounts collected, even if erroneously or illegally 
 collected, from a purchaser under a representation that they are 
 taxes imposed under this chapter are state funds from the time 
 of collection and must be reported on a return filed with the 
 commissioner and are not subject to refund without proof that 
 such amounts have been refunded or credited to the purchaser by 
 the seller. 

    HIST: 1996 c 471 art 2 s 12 

     297A.03 Separate statement; collection from purchaser; 
  advertising no tax; minimum; uniform tax collection methods. 

    Subdivision 1.  The tax shall be stated and charged 
 separately from the sales price or charge for service insofar as 
 practicable and shall be collected by the seller from the 
 purchaser and shall be a debt from the purchaser to the seller 
 recoverable at law in the same manner as other debts.  

    Subd. 2.  In computing the tax to be collected as the 
 result of any transaction amounts of tax less than one-half of 
 one cent may be disregarded and amounts of tax of one-half cent 
 or more may be considered an additional cent.  If the sales 
 price of any sale at retail is eight cents or less, no tax shall 
 be collected.  

    Subd. 3.  Agreements between competitive retailers or the 
 adoption of appropriate rules or regulations by organizations or 
 associations of retailers to provide uniform methods for adding 
 such tax or the average equivalent thereof, and which do not 
 involve price fixing agreements otherwise unlawful, are 
 expressly authorized and shall be held not in violation of any 
 laws of Minnesota prohibiting such agreements.  The commissioner 
 may prescribe rules for such agreements.  

    HIST: Ex1967 c 32 art 13 s 3; 1969 c 571 s 3; Ex1971 c 31 art 
 1 s 3; 1Sp1981 c 1 art 4 s 4; 3Sp1982 c 1 art 6 s 3; 1983 c 342 
 art 6 s 5; 1990 c 480 art 1 s 39 

     297A.04 Applications; member; form. 

    Every person desiring to engage in the business of making 
 retail sales within Minnesota shall file with the commissioner 
 an application for a permit.  The commissioner may require any 
 person or class of persons obligated to file a use tax return 
 under section 289A.11, subdivision 3, to file application for a 
 permit.  Every application for a permit shall be made upon a 
 form prescribed by the commissioner and shall set forth the name 
 under which the applicant intends to transact business, the 
 location of the applicant's place or places of business, and 
 such other information as the commissioner may require.  The 
 application shall be filed by the owner, if a natural person; by 
 a member or partner, if the owner is an association or 
 partnership; by a person authorized to file the application, if 
 the owner is a corporation.  

    HIST: Ex1967 c 32 art 13 s 4; 1969 c 571 s 4; 1986 c 444; 1990 
 c 480 art 1 s 46; 1993 c 375 art 9 s 26 

     297A.041 Operator of flea markets; seller's permits 
  required. 

    The operator of a flea market, craft show, antique show, 
 coin show, stamp show, comic book show, convention exhibit area, 
 or similar selling event, as a prerequisite to renting or 
 leasing space on the premises owned or controlled by the 
 operator to a person desiring to engage in or conduct business 
 as a seller, shall obtain evidence that the seller is the holder 
 of a valid seller's permit issued under section 297A.04, or a 
 written statement from the seller that the seller is not 
 offering for sale any item that is taxable under this chapter.  

    Flea market, craft show, antique show, coin show, stamp 
 show, comic book show, convention exhibit area, or similar 
 selling event, as used in this section, means an activity 
 involving a series of sales sufficient in number, scope, and 
 character to constitute a regular course of business, and that 
 would not qualify as an isolated or occasional sale under 
 section 297A.25, subdivision 12.  

    HIST: 1983 c 327 s 3; 1985 c 83 s 2; 1986 c 444; 1990 c 480 
 art 1 s 40; 1997 c 84 art 3 s 4 

  297A.05 Repealed, 1983 c 301 s 235; 1983 c 327 s 16 

     297A.06 Permit. 

    After compliance with sections 297A.04 and 297A.28, when 
 security is required, the commissioner shall grant to each 
 applicant a permit.  A permit is valid until canceled or revoked 
 but is not assignable and is valid only for the person in whose 
 name it is granted and for the transaction of business at the 
 places designated.  

    HIST: Ex1967 c 32 art 13 s 6; 1987 c 384 art 2 s 73; 1989 c 
 277 art 1 s 13; 1993 c 375 art 9 s 27 

     297A.065 Cancellation of permits. 

    The commissioner may cancel a permit when one of the 
 following conditions occurs: 

    (1) the permit holder has not filed a sales or use tax 
 return for one year or more; 

    (2) the permit holder has not reported any sales or use tax 
 liability on the permit holder's returns for two or more years; 
 or 

    (3) the permit holder requests cancellation of the permit. 

    HIST: 1989 c 277 art 1 s 14 

     297A.07 Revocation of permits. 

    Subdivision 1.    Hearings.  If any person fails to 
 comply with this chapter or the sales and use tax provisions of 
 chapter 289A or the rules adopted thereunder, without reasonable 
 cause, the commissioner may give the person 30 days' notice in 
 writing, specifying the violations, and that based upon such 
 violations the commissioner intends to revoke the person's 
 permit.  The notice shall also advise the person of the person's 
 right to contest the revocation under this subdivision, and the 
 general procedures for a contested case hearing under chapter 
 14.  The notice may be served personally or by mail in the 
 manner prescribed for service of an order of assessment.  A 
 permit is revoked when the commissioner serves a notice of 
 revocation of permit upon the person after 30 days have passed 
 following the date of the notice of intent to revoke without the 
 person requesting a hearing, or if a hearing is timely 
 requested, and held, after the commissioner serves an order of 
 revocation of permit under section 14.62, subdivision 1. 

    Subd. 2. Repealed, 1994 c 510 art 3 s 13 

    Subd. 3.    New permits after revocation.  The 
 commissioner shall not issue a new permit or reinstate a revoked 
 permit after revocation unless the taxpayer applies for a permit 
 and provides reasonable evidence of intention to comply with the 
 sales and use tax laws and rules.  The commissioner may require 
 the applicant to supply security, in addition to that authorized 
 by section 297A.28, as is reasonably necessary to insure 
 compliance with the sales and use tax laws and rules. 

    If a taxpayer has had a permit or permits revoked three 
 times in a five-year period, the commissioner shall not issue a 
 new permit or reinstate the revoked permit until 24 months have 
 elapsed after revocation and the taxpayer has satisfied the 
 conditions for reinstatement of a revoked permit or issuance of 
 a new permit imposed by this section and rules adopted hereunder.

    For purposes of this subdivision, the term "taxpayer" means 
 an individual, if a revoked permit was issued to or in the name 
 of an individual, or a corporation or partnership, if a revoked 
 permit was issued to or in the name of a corporation or 
 partnership.  Taxpayer also means an officer of a corporation, a 
 member of a partnership, or an individual who is liable for 
 delinquent sales taxes, either for the entity for which the new 
 or reinstated permit is at issue, or for another entity for 
 which a permit was previously revoked, or personally as a permit 
 holder. 

    HIST: Ex1967 c 32 art 13 s 7; 1985 c 248 s 70; 1986 c 444; 
 1987 c 268 art 17 s 25; 1989 c 184 art 2 s 27; 1992 c 511 art 8 
 s 7; 1993 c 375 art 9 s 28; 1994 c 416 art 3 s 3; 1994 c 510 art 
 3 s 10; 1997 c 84 art 5 s 10 

  297A.08 Repealed, 1990 c 480 art 1 s 45 

     297A.09 Presumption of tax; burden of proof. 

    For the purpose of the proper administration of this 
 chapter and to prevent evasion of the tax, it shall be presumed 
 that all gross receipts are subject to the tax until the 
 contrary is established.  The burden of proving that a sale is 
 not a sale at retail is upon the person who makes the sale, but 
 that person may take from the purchaser, at the time the exempt 
 purchase occurs, an exemption certificate to the effect that the 
 property purchased is for resale or that the sale is otherwise 
 exempt from the application of the tax imposed by sections 
 297A.01 to 297A.44.  A person asserting a claim that certain 
 sales are exempt, who does not have the required exemption 
 certificates in their possession, shall acquire the certificates 
 within 60 days after receiving written notice from the 
 commissioner that the certificates are required.  If the 
 certificates are not obtained within the 60-day period, the 
 sales are deemed taxable sales under this chapter. 

    HIST: Ex1967 c 32 art 13 s 9; 1986 c 444; 1997 c 31 art 2 s 7; 
 1997 c 231 art 7 s 9 

     297A.10 Exemption certificate, duty of retailer. 

    The exemption certificate will conclusively relieve the 
 retailer from collecting and remitting the tax only if taken in 
 good faith from a purchaser who holds the permit provided for in 
 section 297A.06. 

    HIST: Ex1967 c 32 art 13 s 10 

     297A.11 Content and form of exemption certificate. 

    The exemption certificate shall be signed by and bear the 
 name and address of the purchaser, shall indicate the sales tax 
 account number if any issued to the purchaser and shall indicate 
 the general character of the property sold by the purchaser in 
 the regular course of business and shall identify the property 
 purchased.  The certificate shall be substantially in such form 
 as the commissioner may prescribe.  

    HIST: Ex1967 c 32 art 13 s 11; 1993 c 375 art 9 s 29 

     297A.12 Improper use of subject of purchase obtained 
  with exemption certificate. 

    If a purchaser who gives an exemption certificate makes any 
 use of the subject of the purchase other than for a purpose 
 exempted under this chapter, such use shall be deemed a retail 
 sale by the purchaser as of the time of first use by the 
 purchaser, and the sales price to the purchaser shall be deemed 
 the gross receipts from such retail sale.  If the sole nonexempt 
 use is rental while holding for sale, the purchaser shall 
 include in the purchaser's gross receipts the amount of the 
 rental charged.  Upon subsequent sale of such property, the 
 seller shall include the entire amount of gross receipts 
 received therefrom without deduction of amounts previously 
 received as rentals.  

    HIST: Ex1967 c 32 art 13 s 12; 1971 c 151 s 1; 1986 c 444; 
 1997 c 31 art 2 s 8 

  297A.121 Repealed, 1990 c 480 art 1 s 45 

     297A.13 Commingling exemption certificate goods.  

    If a purchaser gives an exemption certificate with respect 
 to the purchase of fungible goods and thereafter commingles 
 these goods with other fungible goods not so purchased but of 
 such similarity that the identity of the constituent goods in 
 the commingled mass cannot be determined, sales from the mass of 
 commingled goods shall be deemed to be sales of the goods so 
 purchased until a quantity of commingled goods equal to the 
 quantity of purchased goods so commingled has been sold.  

    HIST: Ex1967 c 32 art 13 s 13 

     297A.135 Rental motor vehicle tax. 

    Subdivision 1.    Tax imposed.  A tax is imposed on the 
 lease or rental in this state for not more than 28 days of a 
 passenger automobile as defined in section 168.011, subdivision 
 7, a van as defined in section 168.011, subdivision 28, or a 
 pickup truck as defined in section 168.011, subdivision 29.  The 
 tax is imposed at the rate of 6.2 percent of the sales price as 
 defined for the purpose of imposing the sales and use tax in 
 this chapter.  It applies whether or not the vehicle is licensed 
 in the state. 

    Subd. 1a.    Fee imposed.  A fee equal to three percent 
 of the sales price is imposed on leases or rentals of vehicles 
 subject to the tax under subdivision 1.  The lessor on the 
 invoice to the customer may designate the fee as "a fee imposed 
 by the State of Minnesota for the registration of rental cars." 

    Subd. 2.    Sales and use tax.  The tax imposed in 
 subdivision 1 and the fee imposed in subdivision 1a are not 
 included in the sales price for purposes of determining the 
 sales and use tax imposed in this chapter or any sales and use 
 tax imposed on the transaction under a special law. 

    Subd. 3.    Administration.  The tax imposed in 
 subdivision 1 must be reported and paid to the commissioner of 
 revenue with the taxes imposed in this chapter.  The tax imposed 
 in subdivision 1 and the fee imposed in subdivision 1a are 
 subject to the same interest, penalty, and other provisions 
 provided for sales and use taxes under chapter 289A and this 
 chapter.  The commissioner has the same powers to assess and 
 collect the tax and fee that are given the commissioner in 
 chapters 270 and 289A and this chapter to assess and collect 
 sales and use tax. 

    Subd. 4.    Exemptions.  (a) The tax and the fee imposed 
 by this section do not apply to a lease or rental of (1) a 
 vehicle to be used by the lessee to provide a licensed taxi 
 service; (2) a hearse or limousine used in connection with a 
 burial or funeral service; or (3) a van designed or adapted 
 primarily for transporting property rather than passengers. 

    (b) The lessor may elect not to charge the fee imposed in 
 subdivision 1a if in the previous calendar year the lessor had 
 no more than 20 vehicles available for lease that would have 
 been subject to tax under this section, or no more than $50,000 
 in gross receipts that would have been subject to tax under this 
 section. 

    Subd. 5.    Payment of excess fees.  On the first sales 
 tax return due following the end of a calendar year during which 
 a lessor has imposed a fee under subdivision 1a, the lessor 
 shall report to the commissioner of revenue, in the form 
 required by the commissioner, the amount of the fee collected 
 and the amount of motor vehicle registration taxes paid by the 
 lessor under chapter 168 on vehicles subject to the fee under 
 this section.  If the amount of the fee collected during the 
 previous year exceeds the amount of motor vehicle registration 
 taxes paid under chapter 168 during the previous year, the 
 lessor shall remit the excess to the commissioner of revenue at 
 the time the report is submitted. 

    HIST: 1991 c 291 art 8 s 12; 1992 c 511 art 8 s 8,9; 1994 c 
 587 art 2 s 6; 1995 c 264 art 2 s 25; 3Sp1997 c 3 s 23; 1998 c 
 389 art 8 s 6,7 

  297A.136 Repealed, 1995 c 264 art 2 s 43 

     297A.14 Use tax. 

    Subdivision 1.    Imposition.  For the privilege of 
 using, storing, distributing, or consuming in Minnesota tangible 
 personal property or taxable services purchased for use, 
 storage, distribution, or consumption in this state, a use tax 
 is imposed on every person in this state at the rate of tax 
 imposed under section 297A.02 on the sales price of sales at 
 retail of the items, unless the tax imposed by section 297A.02 
 was paid on the sales price.  

    A use tax is imposed on every person who uses, stores, 
 distributes, or consumes tangible personal property in Minnesota 
 which has been manufactured, fabricated, or assembled by the 
 person from materials, either within or without this state, at 
 the rate of tax imposed under section 297A.02 on the sales price 
 of sales at retail of the materials contained in the tangible 
 personal property, unless the tax imposed by section 297A.02 was 
 paid on the sales price. 

    Subd. 2.    Motor vehicles.  A motor vehicle subject to 
 tax under this section shall be taxed at its fair market value 
 at the time of transport into Minnesota if the motor vehicle was 
 acquired more than three months prior to its transport into this 
 state. 

    Subd. 3. Repealed, 1996 c 471 art 9 s 16 

    Subd. 4.    De minimis exemption.  Purchases subject to 
 use tax under this section are exempt if (1) the purchase is 
 made by an individual for personal use, and (2) the total 
 purchases that are subject to the use tax do not exceed $770 in 
 the calendar year.  For purposes of this subdivision, "personal 
 use" includes purchases for gifts.  If an individual makes 
 purchases, which are subject to use tax, of more than $770 in 
 the calendar year the individual must pay the use tax on the 
 entire amount.  This exemption does not apply to purchases made 
 from retailers who are required or registered to collect taxes 
 under this chapter. 

    HIST: Ex1967 c 32 art 13 s 14; 1971 c 430 s 1; Ex1971 c 31 art 
 1 s 4; 1973 c 650 art 13 s 1; 1Sp1981 c 1 art 4 s 5; 3Sp1982 c 1 
 art 6 s 4; 1983 c 342 art 6 s 6; 1984 c 502 art 6 s 6; 1Sp1985 c 
 14 art 2 s 8; 1987 c 268 art 4 s 7; 1990 c 480 art 4 s 5; 1991 c 
 291 art 2 s 7; 1992 c 511 art 8 s 11; 1993 c 375 art 9 s 31; 
 1996 c 471 art 2 s 13; 1997 c 31 art 2 s 9 

     297A.141 Local admissions and amusement taxes; exemption 
  for arts organizations. 

    No tax imposed by a local unit of government or imposed on 
 sales taking place in a single named local unit of government on 
 sales of admissions or amusements under a law enacted prior or 
 subsequent to the enactment of this provision, other than a 
 general sales tax law, shall apply to amounts charged for 
 admission to the premises of or events sponsored by a nonprofit 
 arts organization.  

    HIST: 1980 c 607 art 5 s 4 

     297A.15 Collection and payment; penalty. 

    Subdivision 1.  Liability for the payment of the use tax is 
 not extinguished until the tax has been paid to Minnesota.  
 However, a receipt from a retailer given to the purchaser 
 pursuant to section 297A.16 relieves the purchaser of further 
 liability for the tax to which the receipt refers, unless the 
 purchaser knows or has reason to know that the retailer did not 
 have a permit to collect the tax.  

    Subd. 2. Repealed, 1988 c 719 art 10 s 20 

    Subd. 3. Repealed, 1990 c 480 art 1 s 45 

    Subd. 4.    Seizure; court review.  The commissioner of 
 revenue or the commissioner's duly authorized agents are 
 empowered to seize and confiscate in the name of the state any 
 truck, automobile or means of transportation not owned or 
 operated by a common carrier, used in the illegal importation 
 and transportation of any article or articles of tangible 
 personal property by a retailer or the retailer's agent or 
 employee who does not have a sales or use tax permit and has 
 been engaging in transporting personal property into the state 
 without payment of the tax.  The commissioner may demand the 
 forfeiture and sale of the truck, automobile or other means of 
 transportation together with the property being transported 
 illegally, unless the owner establishes to the satisfaction of 
 the commissioner or the court that the owner had no notice or 
 knowledge or reason to believe that the vehicle was used or 
 intended to be used in any such violation.  Within two days 
 after the seizure, the person making the seizure shall deliver 
 an inventory of the vehicle and property seized to the person 
 from whom the seizure was made, if known, and to any person 
 known or believed to have any right, title, interest or lien on 
 the vehicle or property, and shall also file a copy with the 
 commissioner.  Within ten days after the date of service of the 
 inventory, the person from whom the vehicle and property was 
 seized or any person claiming an interest in the vehicle or 
 property may file with the commissioner a demand for a judicial 
 determination of the question as to whether the vehicle or 
 property was lawfully subject to seizure and forfeiture.  The 
 commissioner, within 30 days, shall institute an action in the 
 district court of the county where the seizure was made to 
 determine the issue of forfeiture.  The action shall be brought 
 in the name of the state and shall be prosecuted by the county 
 attorney or by the attorney general.  The court shall hear the 
 action without a jury and shall try and determine the issues of 
 fact and law involved.  Whenever a judgment of forfeiture is 
 entered, the commissioner may, unless the judgment is stayed 
 pending an appeal, cause the forfeited vehicle and property to 
 be sold at public auction as provided by law.  If a demand for 
 judicial determination is made and no action is commenced as 
 provided in this subdivision, the vehicle and property shall be 
 released by the commissioner and redelivered to the person 
 entitled to it.  If no demand is made, the vehicle and property 
 seized shall be deemed forfeited to the state by operation of 
 law and may be disposed of by the commissioner as provided where 
 there has been a judgment of forfeiture.  The forfeiture and 
 sale of the automobile, truck or other means of transportation, 
 and of the property being transported illegally in it, is a 
 penalty for the violation of this chapter.  After deducting the 
 expense of keeping the vehicle and property, the fee for 
 seizure, and the costs of the sale, the commissioner shall pay 
 from the funds collected all liens according to their priority, 
 which are established at the hearing as being bona fide and as 
 existing without the lienor having any notice or knowledge that 
 the vehicle or property was being used or was intended to be 
 used for or in connection with any such violation as specified 
 in the order of the court, and shall pay the balance of the 
 proceeds into the state treasury to be credited to the general 
 fund.  The state shall not be liable for any liens in excess of 
 the proceeds from the sale after deductions provided.  Any sale 
 under the provisions of this section shall operate to free the 
 vehicle and property sold from any and all liens on it, and 
 appeal from the order of the district court will lie as in other 
 civil cases.  

    For the purposes of this section, "common carrier" means 
 any person engaged in transportation for hire of tangible 
 personal property by motor vehicle, limited to (1) a person 
 possessing a certificate or permit or having completed a 
 registration process that authorizes for-hire transportation of 
 property from the United States Department of Transportation, 
 the transportation regulation board, or the department of 
 transportation; or (2) any person transporting commodities 
 defined as "exempt" in for-hire transportation; or (3) any 
 person who pursuant to a contract with a person described in 
 clause (1) or (2) above transports tangible personal property.  

    Subd. 5.    Refund; appropriation.  Notwithstanding the 
 provisions of sections 297A.02, subdivision 5, and 297A.25, 
 subdivision 42, the tax on sales of capital equipment, and 
 replacement capital equipment, shall be imposed and collected as 
 if the rate under section 297A.02, subdivision 1, applied.  Upon 
 application by the purchaser, on forms prescribed by the 
 commissioner, a refund equal to the reduction in the tax due as 
 a result of the application of the exemption under section 
 297A.25, subdivision 42, and the rate under section 297A.02, 
 subdivision 5, shall be paid to the purchaser.  The application 
 must include sufficient information to permit the commissioner 
 to verify the sales tax paid for the project.  The application 
 shall include information necessary for the commissioner 
 initially to verify that the purchases qualified as capital 
 equipment under section 297A.25, subdivision 42, or replacement 
 capital equipment under section 297A.01, subdivision 20.  No 
 more than two applications for refunds may be filed under this 
 subdivision in a calendar year.  Unless otherwise specifically 
 provided by this subdivision, the provisions of section 289A.40 
 apply to the refunds payable under this subdivision.  There is 
 annually appropriated to the commissioner of revenue the amount 
 required to make the refunds. 

    The amount to be refunded shall bear interest at the rate 
 in section 270.76 from the date the refund claim is filed with 
 the commissioner. 

    Subd. 6.    Refund; appropriation.  The tax on the gross 
 receipts from the sale of items exempt under section 297A.25, 
 subdivision 43, must be imposed and collected as if the sale 
 were taxable and the rate under section 297A.02, subdivision 1, 
 applied. 

    Upon application by the owner of the homestead property on 
 forms prescribed by the commissioner, a refund equal to the tax 
 paid on the gross receipts of the building materials and 
 equipment must be paid to the homeowner.  In the case of 
 building materials in which the tax was paid by a contractor, 
 application must be made by the homeowner for the sales tax paid 
 by the contractor.  The application must include sufficient 
 information to permit the commissioner to verify the sales tax 
 paid for the project.  The contractor must furnish to the 
 homeowner a statement of the cost of building materials and the 
 sales taxes paid on the materials.  The amount required to make 
 the refunds is annually appropriated to the commissioner.  
 Interest must be paid on the refund at the rate in section 
 270.76 from 60 days after the date the refund claim is filed 
 with the commissioner. 

    Subd. 7.    Refund; appropriation; adult and juvenile 
 correctional facilities.  If construction materials and 
 supplies described in section 297A.25, subdivision 65, are 
 purchased by a contractor, subcontractor, or builder as part of 
 a lump-sum contract or similar type of contract with a price 
 covering both labor and materials for use in the project, a 
 refund equal to the taxes paid by the contractor, subcontractor, 
 or builder must be paid to the governmental subdivision.  The 
 tax must be imposed and collected as if the sales were taxable 
 and the rate under section 297A.02, subdivision 1, applied.  An 
 application for refund must be submitted by the governmental 
 subdivision and must include sufficient information to permit 
 the commissioner to verify the sales taxes paid for the 
 project.  The contractor, subcontractor, or builder must furnish 
 to the governmental subdivision a statement of the cost of the 
 construction materials and supplies and the sales taxes paid on 
 them.  The amount required to make the refunds is annually 
 appropriated to the commissioner.  Interest must be paid on the 
 refund at the rate in section 270.76 from 60 days after the date 
 the refund claim is filed with the commissioner. 

    HIST: Ex1967 c 32 art 13 s 15; 1969 c 915 s 1; 1975 c 397 s 2; 
 1980 c 614 s 123; 1983 c 247 s 128; 1984 c 502 art 6 s 7; 1985 c 
 248 s 70; 1Sp1985 c 14 art 8 s 17; 1986 c 441 s 7; 1986 c 444; 
 1988 c 719 art 10 s 2,3; 1Sp1989 c 1 art 12 s 4,5; 1990 c 480 
 art 1 s 46; 1992 c 464 art 2 s 4; 1992 c 511 art 7 s 21,22; art 
 8 s 12; 1994 c 587 art 2 s 7; 1995 c 264 art 2 s 26; 1996 c 471 
 art 2 s 14; art 9 s 3,4; 1997 c 231 art 7 s 10; 1997 c 251 s 21 

  297A.151 Renumbered 270.73 

     297A.16 Collection of tax at time of sale. 

    Any retailer who is required under section 297A.21 or 
 authorized by the commissioner to collect the use tax upon 
 making retail sales of any items enumerated in this chapter not 
 exempted under sections 297A.01 to 297A.44 to which the use tax 
 applies shall at the time of making such sales collect the use 
 tax from the purchaser and give to the purchaser a receipt 
 therefor in the form of a notation on the sales slip or receipt 
 for the sales price or in such other form as prescribed by the 
 commissioner.  Any such retailer shall not collect the tax from 
 a purchaser who furnishes to such retailer a copy of a 
 certificate issued by the commissioner authorizing such 
 purchaser to pay any sales or use tax due on purchases made by 
 such purchaser directly to the commissioner.  The tax collected 
 by such retailer pursuant to the provisions of this section 
 shall be remitted to the commissioner as provided in other 
 sections of this chapter. 

    HIST: Ex1967 c 32 art 13 s 16; 1969 c 915 s 2; 1986 c 444; 
 1988 c 719 art 10 s 4 

     297A.17 Status as debt. 

    The use tax required to be collected by the retailer shall 
 be a debt from the purchaser to the retailer recoverable at law 
 in the same manner as other debts.  

    HIST: Ex1967 c 32 art 13 s 17; 1988 c 719 art 10 s 5; 1989 c 
 277 art 1 s 15; 1990 c 480 art 1 s 41 

     297A.18 Minimum tax. 

    In computing the tax to be collected as the result of any 
 transaction amounts of tax less than one-half of one cent may be 
 disregarded and amounts of tax of one-half cent or more may be 
 considered an additional cent. 

    HIST: Ex1967 c 32 art 13 s 18; 1987 c 268 art 4 s 8; 1990 c 
 480 art 1 s 42 

  297A.19 Repealed, 1989 c 277 art 1 s 35 

  297A.20 Repealed, 1990 c 480 art 1 s 45 

     297A.21 Registration to collect use tax. 

    Subdivision 1.    Retailer maintaining place of business 
 in Minnesota.  "Retailer maintaining a place of business in 
 this state", or any like term, shall mean any retailer having or 
 maintaining within this state, directly or by a subsidiary, an 
 office, place of distribution, sales or sample room or place, 
 warehouse, or other place of business, or having any 
 representative, agent, salesperson, canvasser, or solicitor 
 operating in this state under the authority of the retailer or 
 its subsidiary, for any purpose, including the repairing, 
 selling, delivering, installing, or soliciting of orders for the 
 retailer's goods or services, or the leasing of tangible 
 personal property located in this state, whether the place of 
 business or agent, representative, salesperson, canvasser, or 
 solicitor is located in the state permanently or temporarily, or 
 whether or not the retailer or subsidiary is authorized to do 
 business within this state. 

    Subd. 2.    Destination.  The destination of a sale is 
 the location to which the retailer makes delivery of the 
 property sold, or causes the property to be delivered, to the 
 purchaser of the property, or to the agent or designee of the 
 purchaser by any means of delivery, including the United States 
 Postal Service, a common carrier, or a contract carrier. 

    Subd. 3.    Out-of-state retailer maintaining place of 
 business in Minnesota.  A retailer making retail sales from 
 outside this state to a destination within this state and 
 maintaining a place of business in this state shall file an 
 application for a permit pursuant to section 297A.04 and shall 
 collect and remit the use tax as provided in section 297A.16. 

    Subd. 4.    Required registration by out-of-state retailer 
 not maintaining place of business in Minnesota.  (a) A 
 retailer making retail sales from outside this state to a 
 destination within this state and not maintaining a place of 
 business in this state shall file an application for a permit 
 pursuant to section 297A.04 and shall collect and remit the use 
 tax as provided in section 297A.16 if the retailer engages in 
 the regular or systematic soliciting of sales from potential 
 customers in this state by: 

    (1) the distribution, by mail or otherwise, without regard 
 to the state from which such distribution originated or in which 
 the materials were prepared, of catalogs, periodicals, 
 advertising flyers, or other written solicitations of business 
 to customers in this state; 

    (2) display of advertisements on billboards or other 
 outdoor advertising in this state; 

    (3) advertisements in newspapers published in this state; 

    (4) advertisements in trade journals or other periodicals 
 the circulation of which is primarily within this state; 

    (5) advertisements in a Minnesota edition of a national or 
 regional publication or a limited regional edition in which this 
 state is included of a broader regional or national publication 
 which are not placed in other geographically defined editions of 
 the same issue of the same publication; 

    (6) advertisements in regional or national publications in 
 an edition which is not by its contents geographically targeted 
 to Minnesota but which is sold over the counter in Minnesota or 
 by subscription to Minnesota residents; 

    (7) advertisements broadcast on a radio or television 
 station located in Minnesota; or 

    (8) any other solicitation by telegraphy, telephone, 
 computer database, cable, optic, microwave, or other 
 communication system. 

    (b) The location within or without this state of vendors 
 independent of the retailer which provide products or services 
 to the retailer in connection with its solicitation of customers 
 within this state, including such products and services as 
 creation of copy, printing, distribution, and recording, is not 
 to be taken into account in the determination of whether the 
 retailer is required to collect use tax.  Paragraph (a) shall be 
 construed without regard to the state from which distribution of 
 the materials originated or in which they were prepared.  

    (c) A retailer not maintaining a place of business in this 
 state shall be presumed, subject to rebuttal, to be engaged in 
 regular solicitation within this state if it engages in any of 
 the activities in paragraph (a) and (1) makes 100 or more retail 
 sales from outside this state to destinations within this state 
 during a period of 12 consecutive months, or (2) makes ten or 
 more retail sales totaling more than $100,000 from outside this 
 state to destinations within this state during a period of 12 
 consecutive months. 

    (d) A retailer not maintaining a place of business in this 
 state shall not be required to collect use tax imposed by any 
 local governmental unit or subdivision of this state and this 
 section does not subject such a retailer to any regulation of 
 any local unit of government or subdivision of this state.  

    Subd. 5.    Voluntary registration by out-of-state 
 retailer not maintaining place of business in Minnesota.  A 
 retailer making retail sales from outside this state to a 
 destination within this state who is not required to collect and 
 remit use tax may nevertheless voluntarily file an application 
 for a permit pursuant to section 297A.04.  If the application is 
 granted, the retailer shall collect and remit the use tax as 
 provided in section 297A.16 until the permit is canceled or 
 revoked. 

    Subd. 6.    Commissioner's discretion.  (a) The 
 commissioner may decline to issue a permit to any retailer not 
 maintaining a place of business in this state, or may cancel a 
 permit previously issued to the retailer, if the commissioner 
 believes that the use tax can be collected more effectively from 
 the persons using the property in this state.  A refusal to 
 issue or cancellation of a permit on such grounds does not 
 affect the retailer's right to make retail sales from outside 
 this state to destinations within this state. 

    (b) When, in the opinion of the commissioner, it is 
 necessary for the efficient administration of sections 297A.14 
 to 297A.25 to regard a salesperson, representative, trucker, 
 peddler, or canvasser as the agent of the dealer, distributor, 
 supervisor, employer, or other person under whom that person 
 operates or from whom the person obtains the tangible personal 
 property sold, whether making sales personally or in behalf of 
 that dealer, distributor, supervisor, employer, or other person 
 the commissioner may regard the salesperson, representative, 
 trucker, peddler, or canvasser as such agent, and may regard the 
 dealer, distributor, supervisor, employer, or other person as a 
 retailer for the purposes of sections 297A.14 to 297A.25. 

    HIST: Ex1967 c 32 art 13 s 21; 1969 c 915 s 3; 1986 c 444; 
 1988 c 719 art 10 s 6; 1989 c 277 art 1 s 17; 1991 c 291 art 8 s 
 13,14; 1992 c 511 art 8 s 13; 1996 c 471 art 9 s 5 

     297A.211 Common carriers as retailers. 

    Subdivision 1.  Every person, as defined in this chapter, 
 who is engaged in interstate for-hire transportation of tangible 
 personal property or passengers by motor vehicle may at their 
 option, under rules prescribed by the commissioner, register as 
 retailers and pay the taxes imposed by this chapter in 
 accordance with this section.  Any taxes paid under this section 
 are deemed use taxes, except local sales taxes when no 
 corresponding local use tax is imposed.  Persons referred to 
 herein are:  (1) persons possessing a certificate or permit or 
 having completed a registration process that authorizes for-hire 
 transportation of property or passengers from the United States 
 Department of Transportation, the transportation regulation 
 board, or the department of transportation; or (2) persons 
 transporting commodities defined as "exempt" in for-hire 
 transportation in interstate commerce; or (3) persons who, 
 pursuant to contracts with persons described in clause (1) or 
 (2) above, transport tangible personal property in interstate 
 commerce.  Persons qualifying under clauses (2) and (3) must 
 maintain on a current basis the same type of mileage records 
 that are required by persons specified in clause (1) by the 
 United States Department of Transportation.  Persons who in the 
 course of their business are transporting solely their own goods 
 in interstate commerce may also register as retailers pursuant 
 to rules prescribed by the commissioner and pay the taxes 
 imposed by this chapter in accordance with this section.  

    Subd. 2.  (a) Such persons, when properly registered as 
 retailers, may make purchases in this state, or import property 
 into this state, without payment of the sales or use taxes 
 imposed by this chapter at the time of purchase or importation, 
 provided that such purchases or importations come within the 
 provisions of this section and are made in strict compliance 
 with the rules of the commissioner. 

    (b) Any person described in subdivision 1 may elect to pay 
 directly to the commissioner any sales or use tax that may be 
 due under this chapter for the acquisition of mobile 
 transportation equipment and parts and accessories attached or 
 to be attached to such equipment registered under section 
 168.187. 

    (c) The total cost of such equipment and parts and 
 accessories attached or to be attached to such equipment shall 
 be multiplied by a fraction, the numerator of which is the 
 Minnesota mileage as reported on the current pro rata 
 application provided for in section 168.187 and the denominator 
 is the total mileage reported on the current pro rata 
 registration application.  The amount so determined shall be 
 multiplied by the tax rate to disclose the tax due. 

 In computing the tax under this section "sales price" does not 
 include the amount of any tax, except any manufacturer's or 
 importer's excise tax, imposed by the United States upon or with 
 respect to retail sales, whether imposed on the retailer or the 
 consumer.  

    (d) Each such retailer shall make a return and remit to the 
 commissioner the tax due for the preceding calendar month in 
 accordance with the provisions of sections 289A.11 and 289A.20, 
 subdivision 4. 

    Subd. 3.  A person who pays the tax to the seller under 
 section 297A.03 or pays the tax to the motor vehicle registrar 
 as required by section 297B.02 and who meets the requirements of 
 this section at the time of the sale, except that the person has 
 not registered as a retailer under this section at the time of 
 the sale, may register as a retailer, make a return, and file 
 for a refund of the difference between the tax calculated under 
 section 297A.02, 297A.14, or 297B.02 and the tax calculated 
 under subdivision 2.  

    Subd. 4.  Notwithstanding subdivisions 1 to 3, the 
 commissioner may enter into an agreement with the commissioner 
 of public safety, whereby upon approval of both commissioners, 
 the commissioner of public safety will collect the sales tax on 
 motor vehicles from persons defined in subdivision 1.  For the 
 purpose of collecting the tax, the commissioner of public safety 
 shall act as the agent of the commissioner of revenue and shall 
 be subject to all rules not inconsistent with the provisions of 
 this chapter, that may be prescribed by the commissioner. 

    HIST: 1971 c 115 s 1; 1977 c 15 s 1; 1978 c 539 s 1; 1980 c 
 607 art 5 s 3; 1980 c 614 s 123; 1983 c 327 s 5; 1985 c 248 s 
 70; 1987 c 268 art 4 s 9,10; 1990 c 480 art 1 s 43,46; 1991 c 
 291 art 2 s 8; art 8 s 15; 1994 c 587 art 2 s 21; 1996 c 471 art 
 2 s 15; art 9 s 6; 1997 c 231 art 7 s 11 

  297A.212 Repealed, 1995 c 264 art 12 s 5 

     297A.213 Direct payment by purchasers permitted. 

    The commissioner may permit purchasers to pay taxes imposed 
 by this chapter directly to the commissioner.  Any taxes paid by 
 purchasers under this section are deemed use taxes, except local 
 sales taxes when no corresponding local use tax is imposed. 

    HIST: 1997 c 231 art 7 s 12 

     297A.22 Presumption of purpose of sale, burden of proof. 

    For the purpose of the proper administration of sections 
 297A.01 to 297A.44 and to prevent evasion of the use tax and the 
 duty to collect the use tax, it shall be presumed that all 
 retail sales for delivery in Minnesota are for storage, use or 
 other consumption in Minnesota until the contrary is 
 established.  The retailer who makes the sale may take from the 
 purchaser an exemption certificate in accordance with sections 
 297A.09 to 297A.13.  

    HIST: Ex1967 c 32 art 13 s 22; 1986 c 444; 1997 c 31 art 2 s 
 10 

     297A.23 Property brought to state; presumption; burden 
  of proof. 

    Any purchaser of tangible personal property or any items 
 enumerated in section 297A.14 which are shipped or brought to 
 Minnesota by the purchaser shall have the burden of proving that 
 the same were not purchased from a retailer for storage, use or 
 consumption in Minnesota.  

    HIST: Ex1967 c 32 art 13 s 23; 1986 c 444; 1997 c 31 art 2 s 
 11 

     297A.24 Taxes in other states or other counties. 

    Subdivision 1.    State tax.  If any article of tangible 
 personal property or any item enumerated in section 297A.14 has 
 already been subjected to a tax by any other state in respect of 
 its sale, storage, use or other consumption in an amount less 
 than the tax imposed by sections 297A.01 to 297A.44, then as to 
 the person who paid the tax in such other state, the provisions 
 of section 297A.14 shall apply only at a rate measured by the 
 difference between the rate imposed under section 297A.02 and 
 the rate by which the previous tax was computed.  If such tax 
 imposed in such other state was equal to or greater than the tax 
 imposed in this state, then no tax shall be due from such person 
 under section 297A.14. 

    Subd. 2. Repealed, 1996 c 471 art 9 s 16 

    Subd. 3.    Local taxes.  If an item has been subjected 
 to a sales tax imposed by a political subdivision of this state 
 and is used, stored, or consumed in another political 
 subdivision imposing a local use tax, a credit shall be given 
 for all legally imposed sales taxes paid by the purchaser with 
 respect to that item. 

    HIST: Ex1967 c 32 art 13 s 24; 1973 c 501 s 13; 1Sp1981 c 1 
 art 4 s 6; 1991 c 291 art 2 s 9; 1996 c 471 art 9 s 7; 1997 c 84 
 art 3 s 5 

     297A.25 Exemptions. 

    Subdivision 1.    Scope.  The items contained in this 
 section are specifically exempted from the taxes imposed by this 
 chapter. 

    Subd. 2.    Food products.  The gross receipts from the 
 sale of and storage, use, or consumption of food products 
 including but not limited to cereal and cereal products, butter, 
 cheese, milk and milk products, oleomargarine, meat and meat 
 products, fish and fish products, eggs and egg products, 
 vegetables and vegetable products, fruit and fruit products, 
 spices and salt, sugar and sugar products, coffee and coffee 
 substitutes, tea, cocoa and cocoa products, and food products 
 which are not taxable pursuant to section 297A.01, subdivision 
 3, clause (c) are exempt.  

    Subd. 3.    Medicines; medical devices.  The gross 
 receipts from the sale of and storage, use, or consumption of 
 prescribed drugs, prescribed medicine and insulin, intended for 
 use, internal or external, in the cure, mitigation, treatment or 
 prevention of illness or disease in human beings are exempt, 
 together with prescription glasses, fever thermometers, 
 therapeutic, and prosthetic devices.  "Prescribed drugs" or 
 "prescribed medicine" includes over-the-counter drugs or 
 medicine prescribed by a licensed physician.  "Therapeutic 
 devices" includes reusable finger pricking devices for the 
 extraction of blood, blood glucose monitoring machines, and 
 other diagnostic agents used in diagnosing, monitoring, or 
 treating diabetes.  Nonprescription analgesics consisting 
 principally (determined by the weight of all ingredients) of 
 acetaminophen, acetylsalicylic acid, ibuprofen, ketoprofen, 
 naproxen, and other nonprescription analgesics that are approved 
 by the United States Food and Drug Administration for internal 
 use by human beings, or a combination thereof, are exempt. 

    Medical supplies purchased by a licensed health care 
 facility or licensed health care professional to provide medical 
 treatment to residents or patients are exempt.  The exemption 
 does not apply to medical equipment or components of medical 
 equipment, laboratory supplies, radiological supplies, and other 
 items used in providing medical services.  For purposes of this 
 subdivision, "medical supplies" means adhesive and nonadhesive 
 bandages, gauze pads and strips, cotton applicators, 
 antiseptics, nonprescription drugs, eye solution, and other 
 similar supplies used directly on the resident or patient in 
 providing medical services. 

    Subd. 4.    Constitutional prohibitions.  The gross 
 receipts from the sale of and the storage, use or other 
 consumption in Minnesota of tangible personal property, tickets, 
 or admissions, electricity, gas, or local exchange telephone 
 service, which under the Constitution or laws of the United 
 States or under the Constitution of Minnesota, the state of 
 Minnesota is prohibited from taxing, are exempt.  

    Subd. 5.    Outstate transport or delivery.  The gross 
 receipts from the following sales of, and storage, use, or 
 consumption of, tangible personal property are exempt:  

    (1) property which, without intermediate use, is shipped or 
 transported outside Minnesota by the purchaser and thereafter 
 used in a trade or business or is stored, processed, fabricated 
 or manufactured into, attached to or incorporated into other 
 tangible personal property transported or shipped outside 
 Minnesota and thereafter used in a trade or business outside 
 Minnesota, and which is not thereafter returned to a point 
 within Minnesota, except in the course of interstate commerce 
 (storage shall not constitute intermediate use); provided that 
 the property is not subject to tax in that state or country to 
 which it is transported for storage or use and provided further 
 that sales of tangible personal property to be used in other 
 states or countries as part of a maintenance contract shall be 
 specifically exempt; or 

    (2) property which the seller delivers to a common carrier 
 for delivery outside Minnesota, places in the United States mail 
 or parcel post directed to the purchaser outside Minnesota, or 
 delivers to the purchaser outside Minnesota by means of the 
 seller's own delivery vehicles, and which is not thereafter 
 returned to a point within Minnesota, except in the course of 
 interstate commerce. 

    Subd. 6.    Packing materials.  The gross receipts from 
 the sale of and storage, use, or consumption of packing 
 materials used to pack and ship household goods, the ultimate 
 destination of which is outside the state of Minnesota and which 
 are not thereafter returned to a point within Minnesota, except 
 in the course of interstate commerce, are exempt.  

    Subd. 7.    Petroleum products.  The gross receipts from 
 the sale of and storage, use or consumption of the following 
 petroleum products are exempt:  

    (1) products upon which a tax has been imposed and paid 
 under the provisions of chapter 296A, and no refund has been or 
 will be allowed because the buyer used the fuel for nonhighway 
 use; 

    (2) products which are used in the improvement of 
 agricultural land by constructing, maintaining, and repairing 
 drainage ditches, tile drainage systems, grass waterways, water 
 impoundment, and other erosion control structures; 

    (3) products purchased by a transit system receiving 
 financial assistance under section 174.24 or 473.384; 

    (4) products used in a passenger snowmobile, as defined in 
 section 296A.01, subdivision 39, for off-highway business use as 
 part of the operations of a resort as provided under section 
 296A.16, subdivision 2, clause (2); or 

    (5) products purchased by a state or a political 
 subdivision of a state for use in motor vehicles exempt from 
 registration under section 168.012, subdivision 1, paragraph (b).

    Subd. 8.    Clothing.  The gross receipts from the sale 
 of and storage, use, or consumption of clothing and wearing 
 apparel are exempt, except the following: 

    (1) all articles commonly or commercially known as jewelry, 
 whether real or imitation; pearls, precious and semiprecious 
 stones, and imitations thereof; articles made of, or ornamented, 
 mounted or fitted with precious metals or imitations thereof; 
 watches; clocks; cases and movements for watches and clocks; 
 gold, gold-plated, silver, or sterling flatware or hollowware 
 and silver-plated hollowware; opera glasses; lorgnettes; marine 
 glasses; field glasses and binoculars; 

    (2) articles made of fur on the hide or pelt, and articles 
 of which such fur is the component material or chief value, but 
 only if such value is more than three times the value of the 
 next most valuable component material; 

    (3) perfume, essences, extracts, toilet waters, cosmetics, 
 petroleum jellies, hair oils, pomades, hair dressings, hair 
 restoratives, hair dyes, aromatic cachous and toilet powders.  
 The tax imposed by this chapter shall not apply to lotion, oil, 
 powder, or other articles intended to be used or applied only in 
 the case of babies; 

    (4) trunks, valises, traveling bags, suitcases, satchels, 
 overnight bags, hat boxes for use by travelers, beach bags, 
 bathing suit bags, brief cases made of leather or imitation 
 leather, salespeople's sample and display cases, purses, 
 handbags, pocketbooks, wallets, billfolds, card, pass, and key 
 cases and toilet cases. 

    Subd. 9.    Materials consumed in production.  The gross 
 receipts from the sale of and the storage, use, or consumption 
 of all materials, including chemicals, fuels, petroleum 
 products, lubricants, packaging materials, including returnable 
 containers used in packaging food and beverage products, feeds, 
 seeds, fertilizers, electricity, gas and steam, used or consumed 
 in agricultural or industrial production of personal property 
 intended to be sold ultimately at retail, whether or not the 
 item so used becomes an ingredient or constituent part of the 
 property produced are exempt.  Seeds, trees, fertilizers, and 
 herbicides purchased for use by farmers in the Conservation 
 Reserve Program under United States Code, title 16, section 
 590h, as amended through December 31, 1991, the Integrated Farm 
 Management Program under section 1627 of Public Law Number 
 101-624, the Wheat and Feed Grain Programs under sections 301 to 
 305 and 401 to 405 of Public Law Number 101-624, and the 
 conservation reserve program under sections 103F.505 to 
 103F.531, are included in this exemption.  Sales to a 
 veterinarian of materials used or consumed in the care, 
 medication, and treatment of horses and agricultural production 
 animals are exempt under this subdivision.  Chemicals used for 
 cleaning food processing machinery and equipment are included in 
 this exemption.  Materials, including chemicals, fuels, and 
 electricity purchased by persons engaged in agricultural or 
 industrial production to treat waste generated as a result of 
 the production process are included in this exemption.  Such 
 production shall include, but is not limited to, research, 
 development, design or production of any tangible personal 
 property, manufacturing, processing (other than by restaurants 
 and consumers) of agricultural products whether vegetable or 
 animal, commercial fishing, refining, smelting, reducing, 
 brewing, distilling, printing, mining, quarrying, lumbering, 
 generating electricity and the production of road building 
 materials.  Such production shall not include painting, 
 cleaning, repairing or similar processing of property except as 
 part of the original manufacturing process.  Machinery, 
 equipment, implements, tools, accessories, appliances, 
 contrivances, furniture and fixtures, used in such production 
 and fuel, electricity, gas or steam used for space heating or 
 lighting, are not included within this exemption; however, 
 accessory tools, equipment and other short lived items, which 
 are separate detachable units used in producing a direct effect 
 upon the product, where such items have an ordinary useful life 
 of less than 12 months, are included within the exemption 
 provided herein.  Electricity used to make snow for outdoor use 
 for ski hills, ski slopes, or ski trails is included in this 
 exemption.  Petroleum and special fuels used in producing or 
 generating power for propelling ready-mixed concrete trucks on 
 the public highways of this state are not included in this 
 exemption. 

    Subd. 10.    Publications; publication materials.  The 
 gross receipts from the sale of and storage, use or other 
 consumption in Minnesota of tangible personal property which is 
 used or consumed in producing any publication regularly issued 
 at average intervals not exceeding three months, and any such 
 publication are exempt.  For purposes of this subdivision, 
 "publication" as used herein shall include, without limiting the 
 foregoing, a qualified newspaper as defined by section 331A.02, 
 and any supplements or enclosures with or part of said 
 newspaper; and the gross receipts of any advertising contained 
 therein or therewith shall be exempt.  For this purpose, 
 advertising in any such publication shall be deemed to be a 
 service and not tangible personal property, and persons or their 
 agents who publish or sell such newspapers shall be deemed to be 
 engaging in a service with respect to gross receipts realized 
 from such newsgathering or publishing activities by them, 
 including the sale of advertising.  The term "publication" shall 
 not include magazines and periodicals sold over the counter.  
 Machinery, equipment, implements, tools, accessories, 
 appliances, contrivances, furniture and fixtures used in such 
 publication and fuel, electricity, gas or steam used for space 
 heating or lighting, are not exempt. 

    Subd. 11.    Sales to government.  The gross receipts 
 from all sales, including sales in which title is retained by a 
 seller or a vendor or is assigned to a third party under an 
 installment sale or lease purchase agreement under section 
 465.71, of tangible personal property to, and all storage, use 
 or consumption of such property by, the United States and its 
 agencies and instrumentalities, the University of Minnesota, 
 state universities, community colleges, technical colleges, 
 state academies, the Lola and Rudy Perpich Minnesota center for 
 arts education, an instrumentality of a political subdivision 
 that is accredited as an optional/special function school by the 
 North Central Association of Colleges and Schools, school 
 districts, public libraries, public library systems, 
 multicounty, multitype library systems as defined in section 
 134.001, county law libraries under chapter 134A, the state 
 library under section 480.09, and the legislative reference 
 library are exempt. 

    As used in this subdivision, "school districts" means 
 public school entities and districts of every kind and nature 
 organized under the laws of the state of Minnesota, including, 
 without limitation, school districts, intermediate school 
 districts, education districts, service cooperatives, secondary 
 vocational cooperative centers, special education cooperatives, 
 joint purchasing cooperatives, telecommunication cooperatives, 
 regional management information centers, and any instrumentality 
 of a school district, as defined in section 471.59. 

    Sales exempted by this subdivision include sales under 
 section 297A.01, subdivision 3, paragraph (f).  

    Sales to hospitals and nursing homes owned and operated by 
 political subdivisions of the state are exempt under this 
 subdivision.  

    Sales of supplies and equipment used in the operation of an 
 ambulance service owned and operated by a political subdivision 
 of the state are exempt under this subdivision provided that the 
 supplies and equipment are used in the course of providing 
 medical care.  Sales to a political subdivision of repair and 
 replacement parts for emergency rescue vehicles and fire trucks 
 and apparatus are exempt under this subdivision.  

    Sales to a political subdivision of machinery and 
 equipment, except for motor vehicles, used directly for mixed 
 municipal solid waste management services at a solid waste 
 disposal facility as defined in section 115A.03, subdivision 10, 
 are exempt under this subdivision.  

    Sales to political subdivisions of chore and homemaking 
 services to be provided to elderly or disabled individuals are 
 exempt. 

    Sales to a town of gravel and of machinery, equipment, and 
 accessories, except motor vehicles, used exclusively for road 
 and bridge maintenance, and leases of motor vehicles exempt from 
 tax under section 297B.03, clause (10), are exempt. 

    Sales of telephone services to the department of 
 administration that are used to provide telecommunications 
 services through the intertechnologies revolving fund are exempt 
 under this subdivision. 

    This exemption shall not apply to building, construction or 
 reconstruction materials purchased by a contractor or a 
 subcontractor as a part of a lump-sum contract or similar type 
 of contract with a guaranteed maximum price covering both labor 
 and materials for use in the construction, alteration, or repair 
 of a building or facility.  This exemption does not apply to 
 construction materials purchased by tax exempt entities or their 
 contractors to be used in constructing buildings or facilities 
 which will not be used principally by the tax exempt entities. 

    This exemption does not apply to the leasing of a motor 
 vehicle as defined in section 297B.01, subdivision 5, except for 
 leases entered into by the United States or its agencies or 
 instrumentalities.  

    The tax imposed on sales to political subdivisions of the 
 state under this section applies to all political subdivisions 
 other than those explicitly exempted under this subdivision, 
 notwithstanding section 115A.69, subdivision 6, 116A.25, 
 360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 469.127, 473.448, 473.545, or 473.608 or any other law to the 
 contrary enacted before 1992. 

    Sales exempted by this subdivision include sales made to 
 other states or political subdivisions of other states, if the 
 sale would be exempt from taxation if it occurred in that state, 
 but do not include sales under section 297A.01, subdivision 3, 
 paragraphs (c) and (e). 

    Subd. 12.    Occasional sales.  (a) The gross receipts 
 from the isolated or occasional sale of tangible personal 
 property in Minnesota not made in the normal course of business 
 of selling that kind of property, and the storage, use, or 
 consumption of property acquired as a result of such a sale are 
 exempt.  

    (b) This exemption does not apply to sales of tangible 
 personal property primarily used in a trade or business unless 
 (1) the sale occurs in a transaction subject to or described in 
 section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 
 1031, or 1033 of the Internal Revenue Code of 1986, as amended 
 through December 31, 1990; (2) the sale is between members of a 
 controlled group as defined in section 1563(a) of the Internal 
 Revenue Code of 1986, as amended through December 31, 1990; (3) 
 the sale is a sale of farm machinery; (4) the sale is a farm 
 auction sale; (5) the sale is a sale of substantially all of the 
 assets of a trade or business; or (6) the total amount of gross 
 receipts from the sale of trade or business property made during 
 the calendar month of the sale and the preceding 11 calendar 
 months does not exceed $1,000. 

    (c) For purposes of this subdivision, the following terms 
 have the meanings given.  

    (1) A "farm auction" is a public auction conducted by a 
 licensed auctioneer if substantially all of the property sold 
 consists of property used in the trade or business of farming 
 and property not used primarily in a trade or business. 

    (2) "Trade or business" includes the assets of a separate 
 division, branch, or identifiable segment of a trade or business 
 if, before the sale, the income and expenses attributable to the 
 separate division, branch, or identifiable segment could be 
 separately ascertained from the books of account or record (the 
 lease or rental of an identifiable segment does not qualify for 
 the exemption). 

    (3) A "sale of substantially all of the assets of a trade 
 or business" must occur as a single transaction or a series of 
 related transactions occurring within the 12-month period 
 beginning on the date of the first sale of assets intended to 
 qualify for the exemption provided in paragraph (b), clause (5). 

    For purposes of this subdivision, "normal course of 
 business" means activities that demonstrate a commercial 
 continuity or consistency of making sales or performing services 
 for the purposes of attaining profit or producing income.  
 Factors that indicate that a person is acting in the normal 
 course of business include: 

    (1) systematic solicitation of sales through advertising 
 media; 

    (2) entering into contracts to perform services or provide 
 tangible personal property; 

    (3) maintaining a place of business; or 

    (4) use of exemption certificates to purchase goods exempt 
 from the sales tax. 

    Subd. 13. Repealed, 1987 c 268 art 4 s 25 

    Subd. 14.    Airflight equipment.  The gross receipts 
 from sales of airflight equipment to, and the storage, use or 
 other consumption of such property by airline companies, as 
 defined in section 270.071, subdivision 4, are exempt.  For 
 purposes of this subdivision, "airflight equipment" includes 
 airplanes and parts necessary for the repair and maintenance of 
 such airflight equipment, and flight simulators, but does not 
 include airplanes with a gross weight of less than 30,000 pounds 
 that are used on intermittent or irregularly timed flights. 

    Subd. 15.    Taconite production materials.  The gross 
 receipts from the sale of and the storage, use or other 
 consumption by persons taxed under the in lieu provisions of 
 chapter 298, of mill liners, grinding rods and grinding balls 
 which are substantially consumed in the production of taconite, 
 the material of which primarily is added to and becomes a part 
 of the material being processed are exempt.  

    Subd. 16.    Sales to nonprofit groups.  The gross 
 receipts from the sale of tangible personal property to, and the 
 storage, use or other consumption of such property by, any 
 corporation, society, association, foundation, or institution 
 organized and operated exclusively for charitable, religious, or 
 educational purposes if the property purchased is to be used in 
 the performance of charitable, religious, or educational 
 functions, or any senior citizen group or association of groups 
 that in general limits membership to persons who are either (1) 
 age 55 or older, or (2) physically disabled, and is organized 
 and operated exclusively for pleasure, recreation, and other 
 nonprofit purposes, no part of the net earnings of which inures 
 to the benefit of any private shareholders, are exempt.  For 
 purposes of this subdivision, charitable purpose includes the 
 maintenance of a cemetery owned by a religious organization.  
 Sales exempted by this subdivision include sales pursuant to 
 section 297A.01, subdivision 3, paragraphs (d) and (f).  This 
 exemption shall not apply to building, construction, or 
 reconstruction materials purchased by a contractor or a 
 subcontractor as a part of a lump-sum contract or similar type 
 of contract with a guaranteed maximum price covering both labor 
 and materials for use in the construction, alteration, or repair 
 of a building or facility.  This exemption does not apply to 
 construction materials purchased by tax exempt entities or their 
 contractors to be used in constructing buildings or facilities 
 which will not be used principally by the tax exempt entities.  
 This exemption does not apply to the leasing of a motor vehicle 
 as defined in section 297B.01, subdivision 5. 

    Subd. 17.    Caskets; vaults.  The gross receipts from 
 the sale of and storage, use, or consumption of caskets and 
 burial vaults are exempt.  

    Subd. 18.    Automobiles; disabled veterans.  The gross 
 receipts from the sale of and storage, use, or consumption of an 
 automobile or other conveyance are exempt if the purchaser is 
 assisted by a grant from the United States in accordance with 
 United States Code, title 38, section 3901, as amended through 
 August 6, 1991. 

    Subd. 19.    Aircraft.  The gross receipts from the sale 
 to and the storage, use, or consumption by a licensed aircraft 
 dealer of an aircraft for which a commercial use permit has been 
 issued pursuant to section 360.654 is exempt, if the aircraft is 
 resold while the permit is in effect. 

    Subd. 20.    Building materials; disabled veterans.  The 
 gross receipts from the sale of and the storage, use, or 
 consumption of building materials to be used in the construction 
 or remodeling of a residence are exempt when the construction or 
 remodeling is financed in whole or in part by the United States 
 in accordance with United States Code, title 38, sections 2101 
 to 2105, as amended through August 6, 1991.  This exemption 
 shall not be effective at time of sale of the materials to 
 contractors, subcontractors, builders or owners, but shall be 
 applicable only upon a claim for refund to the commissioner of 
 revenue filed by recipients of the benefits provided in United 
 States Code, title 38, chapter 21, as amended through August 6, 
 1991.  The commissioner shall provide by rule for the refund of 
 taxes paid on sales exempt in accordance with this subdivision. 

    Subd. 21.    Textbooks.  The gross receipts from the 
 sale of and storage, use, or consumption of textbooks which are 
 prescribed for use in conjunction with a course of study in a 
 public or private school, college, university and business or 
 trade school to students who are regularly enrolled at such 
 institutions are exempt.  For purposes of this subdivision a 
 "public school" is defined as one that furnishes course of 
 study, enrollment and staff that meets standards of the state 
 board of education and a "private school" is one which under the 
 standards of the state board of education, provides an education 
 substantially equivalent to that furnished at a public school.  
 "Business and trade schools" shall mean such schools licensed 
 pursuant to section 141.25. 

    Subd. 22.    Advertising materials.  The gross receipts 
 from the sale of and the storage of material designed to 
 advertise and promote the sale of merchandise or services, which 
 material is purchased and stored for the purpose of subsequently 
 shipping or otherwise transferring outside the state by the 
 purchaser for use thereafter solely outside the state of 
 Minnesota are exempt.  Mailing and reply envelopes and cards 
 used exclusively in connection with the advertising and 
 promotional materials are included in this exemption. 

    Subd. 23.    Residential heating fuels.  The gross 
 receipts from the sale of and the storage, use, or consumption 
 of residential heating fuels are exempt in the following manner: 

    (1) all fuel oil, coal, wood, steam, hot water, propane 
 gas, and L.P. gas sold to residential customers for residential 
 use; 

    (2) natural gas sold for residential use to customers who 
 are metered and billed as residential users and who use natural 
 gas for their primary source of residential heat, for the 
 billing months of November, December, January, February, March 
 and April; 

    (3) electricity sold for residential use to customers who 
 are metered and billed as residential users and who use 
 electricity for their primary source of residential heat, for 
 the billing months of November, December, January, February, 
 March and April. 

    Subd. 24.    Nonprofit tickets or admissions.  The gross 
 receipts from the sale or use of tickets or admissions to the 
 premises of or events sponsored by an association, corporation 
 or other group of persons which provides an opportunity for 
 citizens of the state to participate in the creation, 
 performance or appreciation of the arts and which either (1) 
 qualifies as a tax-exempt organization within the meaning of 
 Minnesota Statutes 1980, section 290.05, subdivision 1, clause 
 (i), or (2) is a municipal board that promotes cultural and arts 
 activities are exempt.  The exemption provided with respect to a 
 municipal board applies only to tickets and admissions to events 
 sponsored by the board.  

    Subd. 25.    Veterans groups.  The gross receipts from 
 either the sales to or the storage, use or consumption of 
 tangible personal property by an organization of military 
 service veterans or an auxiliary unit of an organization of 
 military service veterans are exempt, provided that: 

    (1) the organization or auxiliary unit is organized within 
 the state of Minnesota and is exempt from federal taxation 
 pursuant to section 501(c), clause (19), of the Internal Revenue 
 Code of 1986, as amended through December 31, 1992; and 

    (2) the tangible personal property which is sold to or 
 stored, used or consumed by the organization or auxiliary unit 
 is for charitable, civic, educational, or nonprofit uses and not 
 for social, recreational, pleasure or profit uses.  

    Subd. 26.    Feminine hygiene products.  The gross 
 receipts from the sale of and storage, use, or consumption of 
 sanitary napkins, tampons, or similar items used for feminine 
 hygiene, are exempt.  

    Subd. 27.    Manufactured homes.  The gross receipts 
 from the sale of and the storage, use, or consumption of a 
 manufactured home, as defined in section 327.31, subdivision 6, 
 to be used by the purchaser for residential purposes are exempt, 
 unless the sale is the first retail sale of the manufactured 
 home in this state. 

    Subd. 28.    Waste processing equipment.  The gross 
 receipts from the sale of and storage, use, or consumption of 
 equipment used for processing solid or hazardous waste at a 
 resource recovery facility, as defined in section 115A.03, 
 subdivision 28, are exempt, including pollution control 
 equipment at a resource recovery facility that burns 
 refuse-derived fuel or mixed municipal solid waste as its 
 primary fuel. 

    Subd. 29.    Farm machinery repair parts.  The gross 
 receipts from the sale of and the storage, use, or consumption 
 of repair and replacement parts, except tires, used for 
 maintenance or repair of farm machinery are exempt, if the part 
 replaces a farm machinery part assigned a specific or generic 
 part number by the manufacturer of the farm machinery.  

    Subd. 30.    School tickets or admissions.  The gross 
 receipts from sales and use of tickets or admissions to regular 
 season school games, events, and activities are exempt.  For 
 purposes of this subdivision, "school" has the meaning given it 
 in section 120A.22, subdivision 4.  

    Subd. 31.    Sales by government taxable.  This section 
 shall not be construed to exempt the gross receipts from sales 
 of tangible personal property or taxable services purchased from 
 the United States or any of its agencies or instrumentalities, 
 or the state of Minnesota, its agencies, instrumentalities, or 
 political subdivisions by ultimate consumers, and such purchases 
 are hereby declared to be subject to tax, except as they may be 
 otherwise exempted. 

    Subd. 32.    Property brought into Minnesota by 
 nonresident.  All articles of tangible personal property 
 brought into Minnesota by a person who was a nonresident of this 
 state immediately prior to bringing such property into this 
 state for the person's use, storage, or consumption are hereby 
 exempted from the tax imposed by section 297A.14. 

    Subd. 33.    Road materials.  Nothing in this section 
 shall exempt the gross receipts from sales of road building 
 materials intended for use in state trunk highway or interstate 
 highway construction, purchased by contractors. 

    Subd. 34.    Motor vehicles.  The gross receipts from 
 the sale or use of any motor vehicle taxable under the 
 provisions of the sales tax on motor vehicles laws of Minnesota 
 shall be exempt from taxation under this chapter.  
 Notwithstanding subdivision 11, the exemption provided under 
 this subdivision remains in effect for motor vehicles purchased 
 or leased by political subdivisions of the state if the vehicles 
 are exempt from registration under section 168.012, subdivision 
 1, paragraph (b). 

    Subd. 35.    Food stamps.  The gross receipts from the 
 sale and the storage, use, or consumption of tangible personal 
 property purchased with food stamps, coupons, or vouchers issued 
 by the federal government under the Food Stamp Program are 
 exempt.  This exemption also applies to food purchased under the 
 Special Supplemental Food Program for Women, Infants, and 
 Children.  The exemption provided by this subdivision is 
 effective and applies only to the extent required by federal law.

    Subd. 36.    Interstate WATS lines.  The gross receipts 
 from the sale of long distance telephone services are exempt, if 
 the service (1) consists of a wide area telephone line that 
 permits a long distance call to an individual or business 
 located in Minnesota to be made from a location outside of 
 Minnesota at no toll charge to the person placing the call; or 
 (2) entitles a customer, upon payment of a periodic charge that 
 is determined either as a flat amount or upon the basis of total 
 elapsed transmission time, to the privilege of an unlimited 
 number of long distance calls made from a location in Minnesota 
 to a location outside of Minnesota if the customer is a 
 qualified provider of telemarketing services.  As used in this 
 subdivision, a "qualified provider of telemarketing services" is 
 a telemarketing firm that derives at least 80 percent of its 
 revenues from one or more of the following activities:  
 soliciting or providing information, soliciting sales or 
 receiving orders, and conducting research by means of telegraph, 
 telephone, computer database, fiber optic, microwave, or other 
 communication system. 

    Subd. 37.    YMCA, YWCA, and JCC memberships.  The gross 
 receipts from the sale of memberships, including both one-time 
 initiation fees and periodic membership dues, to an association 
 incorporated under section 315.44 or an organization defined 
 under section 315.51, are exempt.  However, all separate charges 
 made for the privilege of having access to and the use of the 
 association's sports and athletic facilities are taxable. 

    Subd. 38.    Used motor oils.  The gross receipts from 
 the sale of and the storage, use, or consumption of used motor 
 oils are exempt. 

    Subd. 39.    Cross-country ski passes.  The gross 
 receipts from the sale and use of cross-country ski passes 
 issued under sections 85.40 to 85.43 are exempt. 

    Subd. 40.    State fair admissions.  The gross receipts 
 from the sale and use of tickets to the premises of or events 
 sponsored by the state agricultural society and conducted on the 
 state fairgrounds during the period of the annual state fair are 
 exempt, provided that: 

    (1) the tax foregone under this subdivision is used 
 exclusively for the purpose of making capital improvements to 
 state-owned buildings and facilities on the state fairgrounds; 
 and 

    (2) the tax foregone under this subdivision is matched in 
 equal amount by proceeds from special assessments levied against 
 commercial exhibits, concessions and rentals, and from other 
 special user fees specifically designated for capital 
 improvements. 

    Subd. 41.    Bullet-proof vests.  The gross receipts 
 from the sale of and storage, use, or consumption of 
 bullet-resistant body armor that provides the wearer with 
 ballistic and trauma protection are exempt if purchased by a law 
 enforcement agency of the state or a political subdivision of 
 the state, or a licensed peace officer, as defined in section 
 626.84, subdivision 1.  

    Subd. 42.    Capital equipment.  The gross receipts from 
 the sale of and storage, use, or consumption of capital 
 equipment are exempt.  

    Subd. 43.    Chair lifts, ramps, elevators.  The gross 
 receipts from the sale of and storage, use, or consumption of 
 chair lifts, ramps, and elevators and building materials used to 
 install or construct them are exempt, if they are authorized by 
 a physician and installed in or attached to the owner's 
 homestead. 

    Subd. 44.    Ambulances.  The lease of a motor vehicle 
 for use as an ambulance by an ambulance service licensed under 
 section 144E.10 is exempt. 

    Subd. 45.    Ships used in interstate commerce.  The 
 gross receipts from sales of, and use, storage, or consumption 
 of: 

    (1) repair, replacement, and rebuilding parts and 
 materials, and lubricants, for ships or vessels used or to be 
 used principally in interstate or foreign commerce; and 

    (2) vessels with a gross registered tonnage of at least 
 3,000 tons are exempt. 

    Subd. 46.    Sacramental wine.  The gross receipts from 
 the sale of and storage, use, or consumption of wine for 
 sacramental purposes in religious ceremonies, as described in 
 section 340A.316, if the wine is purchased from a nonprofit 
 religious organization meeting the requirements of subdivision 
 16 or from the holder of a sacramental wine license as provided 
 in section 340A.316 are exempt. 

    Subd. 47.  Expired 

    Subd. 48.  Expired 

    Subd. 49.    Air cooling equipment.  The gross receipts 
 from the sale of and storage, use, or consumption of equipment 
 used for air cooling are exempt, if the equipment is purchased 
 for conversion or replacement of an existing groundwater based 
 once-through cooling system as required under section 103G.271, 
 subdivision 5. 

    Subd. 50. Repealed, 1995 c 186 s 60 

    Subd. 51.    Automatic fire-safety sprinkler systems.  
 The gross receipts from the sale of and storage, use, or 
 consumption of automatic fire-safety sprinkler systems described 
 in section 273.11, subdivision 6a, are exempt. 

    Subd. 52.    Parts and accessories used to make a motor 
 vehicle handicapped accessible.  The gross receipts from the 
 sale of and storage, use, or consumption of parts and 
 accessories that are used solely to modify a motor vehicle to 
 make it handicapped accessible are exempt.  Labor charges for 
 modifying a motor vehicle to make it handicapped accessible are 
 included in this exemption. 

    Subd. 53.    Special tooling.  The gross receipts from 
 the sale of and storage, use, or consumption of special tooling 
 are exempt. 

    Subd. 54.    Used farm tires.  The first $5,000 of gross 
 receipts from the sales of used, remanufactured, or repaired 
 tires for farm machinery, by a sole proprietor, in a calendar 
 year are exempt provided that: 

    (1) the seller had gross receipts from all sales of less 
 than $10,000 in the previous year; and 

    (2) the tires are not retreaded. 

    Subd. 55.    Construction materials; corrugated recycling 
 facilities.  Construction materials and supplies are exempt 
 from the tax imposed under this chapter, regardless of whether 
 purchased by the owner or a contractor, subcontractor, or 
 builder if: 

    (1) the materials and supplies are used or consumed in 
 constructing a new facility which reduces the flow of solid 
 waste by creating a market for recycled corrugated waste; and 

    (2) the recycling process of the facility produces pulp or 
 paper from corrugated waste. 

    The exemption provided by this subdivision applies to 
 construction materials and supplies purchased prior to December 
 31, 1997. 

    Subd. 56.    Firefighters personal protective equipment. 
  The gross receipts from the sale of and storage, use, or 
 consumption of firefighters personal protective equipment are 
 exempt if purchased by, or when authorized by and for the use 
 of, an organized fire department, fire protection district, or 
 fire company, regularly charged with the responsibility of 
 providing fire protection to the state or a political 
 subdivision.  For purposes of this subdivision, "personal 
 protective equipment" includes:  helmets (including face 
 shields, chin straps, and neck liners), bunker coats and pants 
 (including pant suspenders), boots, gloves, head covers or 
 hoods, wildfire jackets, protective coveralls, goggles, 
 self-contained breathing apparatuses, canister filter masks, 
 personal alert safety systems, spanner belts, optical or thermal 
 imaging search devices, and all safety equipment required by the 
 Occupational Safety and Health Administration. 

    Subd. 57.    Horses; related materials.  (a) The gross 
 receipts from the sale of and storage or use of horses, 
 including racehorses, are exempt. 

    (b) Sales of and storage, use, or consumption of all 
 materials, including feed and bedding, used or consumed in the 
 breeding, raising, owning, boarding, and keeping of horses, are 
 exempt.  Machinery, equipment, implements, tools, appliances, 
 furniture, and fixtures, used in the breeding, raising, owning, 
 boarding, and keeping of horses, are not included within this 
 exemption. 

    Subd. 58.    Personal computers prescribed for use by 
 school.  The gross receipts from the sale, or the storage, use 
 or consumption, of personal computers and related software sold 
 by a public or private school, college, university, or business 
 or trade school to students who are enrolled at the institutions 
 are exempt if: 

    (1) the use of the personal computer, or of a substantially 
 similar model of computer, and the related software is 
 prescribed by the institution in conjunction with a course of 
 study; and 

    (2) each student of the institution, or of a unit of the 
 institution in which the student is enrolled, is required by the 
 institution to purchase or otherwise to acquire and possess such 
 a personal computer and related software as a condition of 
 enrollment.  For the purposes of this subdivision, "public 
 school," "private school," and "business and trade schools" have 
 the meanings given in subdivision 21. 

    Subd. 59.    Farm machinery.  The gross receipts from 
 the sale of used farm machinery and, after June 30, 2000, the 
 gross receipts from the sale of new farm machinery, are exempt. 

    Subd. 60.    Construction materials; state convention 
 center.  Construction materials and supplies are exempt from 
 the tax imposed under this chapter, regardless of whether 
 purchased by the owner or a contractor, subcontractor, or 
 builder, if: 

    (1) the materials and supplies are used or consumed in 
 constructing improvements to a state convention center located 
 in a city located outside of the metropolitan area as defined in 
 section 473.121, subdivision 2, and the center is governed by an 
 11-person board of which four are appointed by the governor; and 

    (2) the improvements are financed in whole or in part by 
 nonstate resources including, but not limited to, revenue or 
 general obligations issued by the state convention center board 
 of the city in which the center is located. 

    Subd. 61.    Construction materials for indoor ice arenas. 
  The gross receipts from the sale of and storage, use, or 
 consumption of construction materials and supplies are exempt if:

    (1) the materials and supplies are to be used in 
 constructing an indoor ice arena intended to be used 
 predominantly for youth athletic activities; and 

    (2) the construction project is financed in whole or in 
 part from a grant under sections 240A.09 and 240A.10 or the 
 proceeds of obligations issued under section 373.43 or 475.58, 
 subdivision 3.  

    This exemption applies regardless of whether the purchases 
 are made by the owner of the facility or a contractor. 

    Subd. 62.    Materials used in providing taxable services. 
  (a) The gross receipts from the sale of and the storage, use, 
 or consumption of all materials used or consumed in providing a 
 taxable service intended to be sold ultimately at retail are 
 exempt. 

    (b) This exemption includes, but is not limited to: 

    (1) chemicals, lubricants, packaging materials, seeds, 
 trees, fertilizers, and herbicides, used or consumed in 
 providing the taxable service; 

    (2) chemicals used to treat waste generated as a result of 
 providing the taxable service; and 

    (3) accessory tools, equipment, and other items that are 
 separate detachable units used in providing the service and that 
 have an ordinary useful life of less than 12 months. 

    (c) This exemption does not include: 

    (1) machinery, equipment, implements, tools, accessories, 
 appliances, contrivances, furniture, and fixtures used in 
 providing the taxable service; and 

    (2) fuel, electricity, gas, and steam used for space 
 heating or lighting. 

    (d) For purposes of this subdivision, "taxable services" 
 means the services listed in section 297A.01, subdivision 3, 
 paragraph (i). 

    Subd. 63.    Hospitals.  The gross receipts from the 
 sale of tangible personal property to, and the storage, use, or 
 consumption of such property by, a hospital are exempt, if the 
 property purchased is to be used in providing hospital services 
 to human beings.  For purposes of this subdivision, "hospital" 
 means a hospital organized and operated for charitable purposes 
 within the meaning of section 501(c)(3) of the Internal Revenue 
 Code of 1986, as amended, and licensed under chapter 144 or by 
 any other jurisdiction.  For purposes of this subdivision, 
 "hospital services" are services authorized or required to be 
 performed by a "hospital" under chapter 144 and regulations 
 thereunder or under the applicable licensure law of any other 
 jurisdiction.  This exemption does not apply to purchases made 
 by a clinic, physician's office, or any other medical facility 
 not operating as a hospital, even though the clinic, office, or 
 facility may be owned and operated by a hospital.  Sales 
 exempted by this subdivision do not include sales under section 
 297A.01, subdivision 3, paragraphs (c) and (e).  This exemption 
 does not apply to building, construction, or reconstruction 
 materials purchased by a contractor or a subcontractor as a part 
 of a lump-sum contract or similar type of contract with a 
 guaranteed maximum price covering both labor and materials for 
 use in the construction, alteration, or repair of a hospital.  
 This exemption does not apply to construction materials to be 
 used in constructing buildings or facilities which will not be 
 used principally by a hospital.  This exemption does not apply 
 to the leasing of a motor vehicle as defined in section 297B.01, 
 subdivision 5. 

    Subd. 64.    Copies of court reporter documents.  The 
 gross receipts from sales of, and use, storage, or consumption 
 of, transcripts or copies of transcripts of verbatim testimony 
 produced and sold by court reporters or other transcribers of 
 legal proceedings to individuals or entities that are parties to 
 or representatives of parties to the proceeding to which the 
 transcript relates, are exempt. 

    Subd. 65.    Construction materials for correctional 
 facilities.  The gross receipts from the sale of and storage, 
 use, or consumption of construction materials and supplies are 
 exempt from the tax imposed under this chapter if purchased for 
 use in a project to construct or improve an adult or juvenile 
 correctional facility in a county, home rule charter city, or 
 statutory city, and if the project is mandated by state or 
 federal law, rule, or regulation.  The exemption applies 
 regardless of whether the materials and supplies are purchased 
 by the city or county, or by a contractor, subcontractor, or 
 builder under a contract with the city or county. 

    Subd. 66.    Construction materials; Lake Superior Center. 
  Construction materials and supplies are exempt from the tax 
 imposed under this chapter, regardless of whether purchased by 
 the owner, a contractor, subcontractor, or builder, provided the 
 materials and supplies are used or consumed in constructing the 
 Lake Superior Center. 

    Subd. 67.    Construction materials; Science Museum.  
 Construction materials and supplies are exempt from the tax 
 imposed under this chapter, regardless of whether purchased by 
 the owner, a contractor, subcontractor, or builder, provided the 
 materials and supplies are used or consumed in constructing the 
 Science Museum of Minnesota. 

    Subd. 68.    Construction materials; business incubator 
 and industrial park facility.  Materials and supplies used or 
 consumed in constructing, or incorporated into the construction 
 of, an exempted facility as defined in this subdivision are 
 exempt from the taxes imposed under this chapter and from any 
 sales and use tax imposed by a local unit of government, 
 notwithstanding any ordinance or city charter provision. 

    As used in this subdivision, an "exempted facility" is a 
 facility that includes a business incubator and industrial park 
 that: 

    (1) is owned and operated by a nonprofit charitable 
 organization that qualifies for tax exemption under section 
 501(c)(3) of the Internal Revenue Code; 

    (2) is used for the development of nonretail businesses, 
 offering access to equipment, space, services, and advice to the 
 tenant businesses, for the purpose of encouraging economic 
 development and job creation in the area served by the 
 organization, and emphasizes development of businesses that 
 manufacture products from materials found in the waste stream, 
 or manufacture alternative energy and conservation systems, or 
 make use of emerging environmental technologies; 

    (3) includes in its structure systems of material and 
 energy exchanges that use waste products from one industrial 
 process as sources of energy and material for other processes; 
 and 

    (4) makes use of solar and wind energy technology and 
 incorporates salvaged materials in its construction. 

    Subd. 69.    Regionwide public safety radio communication 
 system; products and services.  The gross receipts from the 
 sale of, and the storage, use, or consumption of, products and 
 services including end user equipment used for construction, 
 ownership, operation, maintenance, and enhancement of the 
 backbone system of the regionwide public safety radio 
 communication system established under sections 473.891 to 
 473.905, are exempt.  For purposes of this subdivision, backbone 
 system is defined in section 473.891, subdivision 9. 

    Subd. 70.    Alfalfa processing facilities construction 
 materials.  Purchases of construction materials and supplies 
 are exempt from the sales and use taxes imposed under this 
 chapter, regardless of whether purchased by the owner or a 
 contractor, subcontractor, or builder, if: 

    (1) the materials and supplies are used or consumed in 
 constructing a facility which either (i) develops market-value 
 agricultural products made from alfalfa leaf material, or (ii) 
 produces biomass energy fuel or electricity from alfalfa stems 
 in accordance with the biomass mandate imposed under section 
 216B.2424; and 

    (2) the total capital investment made in the value-added 
 agricultural products and biomass electric generation facilities 
 is at least $50,000,000; or 

    (3) the materials and supplies are used or consumed in 
 constructing, equipping or modifying a district heating and 
 cooling system cogeneration facility that: 

    (i) utilizes wood waste as a primary fuel source; and 

    (ii) satisfies the requirements of the biomass mandate in 
 section 216B.2424, subdivision 5. 

    Subd. 71.    Firewood.  The gross receipts from the sale 
 of and the storage, use, or consumption of wood used for fires 
 for heating, cooking, or any other purpose are exempt. 

    Subd. 72.    Wind energy conversion systems.  The gross 
 receipts from the sale of and the storage, use, or consumption 
 of wind energy conversion systems, as defined in section 
 216C.06, subdivision 12, and the materials used to manufacture, 
 install, construct, repair, or replace them are exempt if the 
 systems are used as an electric power source. 

    Subd. 73.    Biosolids processing equipment.  The gross 
 receipts from the sale of and the storage, use, or consumption 
 of equipment designed to process, dewater, and recycle biosolids 
 for wastewater treatment facilities of political subdivisions, 
 and materials incidental to installation of that equipment, are 
 exempt. 

    Subd. 74.    Construction materials; Minneapolis 
 convention center.  Purchases of materials, supplies, or 
 equipment used or consumed in the construction, equipment, 
 improvement, or expansion of the Minneapolis convention center 
 are exempt from the tax imposed under this chapter and from any 
 sales and use tax imposed by a local unit of government 
 notwithstanding any ordinance or charter provision.  This 
 exemption applies regardless of whether the materials, supplies, 
 or equipment are purchased by the city or by a construction 
 manager or contractor. 

    Subd. 75.    Construction materials; RiverCentre arena.  
 Purchases of materials, supplies, or equipment used or consumed 
 in the construction, equipment, improvement, or expansion of the 
 RiverCentre arena complex in the city of St. Paul are exempt 
 from the tax imposed under this chapter and from any sales and 
 use tax imposed by a local unit of government notwithstanding 
 any ordinance or charter provision.  This exemption applies 
 regardless of whether the materials, supplies, or equipment are 
 purchased by the city or by a construction manager or contractor.

    Subd. 76.    Construction materials for an environmental 
 learning center.  Construction materials and supplies are 
 exempt from the tax imposed under this section, regardless of 
 whether purchased by the owner or a contractor, subcontractor, 
 or builder, if they are used or consumed in constructing or 
 improving the Long Lake Conservation Center pursuant to the 
 funding provided under Laws 1994, chapter 643, section 23, 
 subdivision 28, as amended by Laws 1995, First Special Session 
 chapter 2, article 1, section 48; and Laws 1996, chapter 463, 
 section 7, subdivision 26.  The tax shall be calculated and paid 
 as if the rate in section 297A.02, subdivision 1, was in effect 
 and a refund applied for in the manner prescribed in section 
 297A.15, subdivision 7. 

    Subd. 77.    Soybean oilseed processing and refining 
 facility.  Purchases of construction materials and supplies 
 are exempt from the sales and use taxes imposed under this 
 chapter, regardless of whether purchased by the owner or a 
 contractor, subcontractor, or builder, if: 

    (1) the materials and supplies are used or consumed in 
 constructing a facility for soybean oilseed processing and 
 refining; 

    (2) the total capital investment made in the facility is at 
 least $60,000,000; and 

    (3) the facility is constructed by a Minnesota-based 
 cooperative, organized under chapter 308A. 

    Subd. 78.    Earle Brown Heritage Center construction 
 materials.  Purchases of materials and supplies used or 
 consumed in and equipment incorporated into the construction, 
 improvement, or expansion of the Earle Brown Heritage Center in 
 Brooklyn Center are exempt from the tax imposed under this 
 chapter, and from any sales and use tax imposed by a local unit 
 of government notwithstanding any ordinance or charter 
 provision.  This exemption applies regardless of whether the 
 materials, supplies, or equipment are purchased by the city or a 
 contractor, subcontractor, or builder. 

    HIST: Ex1967 c 32 art 13 s 25; 1969 c 881 s 18; 1971 c 123 s 
 1; 1971 c 124 s 1; 1971 c 740 s 2; 1971 c 853 s 17; Ex1971 c 31 
 art 1 s 5; 1973 c 75 s 1; 1973 c 452 s 1; 1973 c 582 s 3; 1973 c 
 650 art 13 s 2; 1974 c 11 s 1; 1974 c 155 s 1; 1978 c 721 art 1 
 s 1; 1979 c 191 s 1; 1980 c 607 art 5 s 2; 1Sp1981 c 1 art 4 s 
 7; 3Sp1981 c 2 art 5 s 2; 1982 c 523 art 15 s 2; art 34 s 2; 
 1982 c 641 art 2 s 5; 1983 c 327 s 6; 1983 c 342 art 6 s 7; 1984 
 c 502 art 6 s 8; 1984 c 525 s 2; 1984 c 548 s 3; 1984 c 644 s 
 55; 1984 c 655 art 1 s 55; 1985 c 83 s 3; 1985 c 248 s 70; 
 1Sp1985 c 10 s 86; 1Sp1985 c 14 art 2 s 9; 1986 c 444; 1987 c 
 268 art 4 s 12-17; 1987 c 384 art 2 s 74; 1988 c 719 art 10 s 
 8-15; 1989 c 209 art 2 s 1; 1989 c 246 s 2; 1989 c 277 art 1 s 
 18,19; 1989 c 329 art 12 s 6; 1Sp1989 c 1 art 12 s 6-8; art 19 s 
 4,5; 1990 c 480 art 4 s 6; 1990 c 556 s 5; 1990 c 604 art 6 s 
 3-5; 1990 c 612 s 13; 1991 c 199 art 1 s 64; 1991 c 291 art 8 s 
 16-20; 1992 c 363 art 1 s 19; 1992 c 511 art 8 s 14-23; 1992 c 
 597 s 15; 1993 c 375 art 8 s 14; art 9 s 32-38; 1994 c 510 art 3 
 s 11,12; 1994 c 587 art 2 s 8-13,21; 1994 c 642 s 7; 1995 c 186 
 s 59; 1995 c 264 art 2 s 27-32; 1996 c 305 art 1 s 66,138; 1996 
 c 395 s 13; 1996 c 412 art 9 s 19; 1996 c 471 art 2 s 16-21; 
 1997 c 31 art 2 s 12-45; 1997 c 84 art 3 s 6,7; 1997 c 199 s 14; 
 1997 c 231 art 7 s 13-29; art 13 s 3-4; 1Sp1997 c 5 s 42; 1998 c 
 299 s 30; 1998 c 389 art 8 s 8-18; 1998 c 397 art 11 s 3; 
 1Sp1998 c 3 s 2 

*   NOTE:  The amendment to subdivision 3 by Laws 1997, chapter 
*231, article 7, section 14, is effective for purchases and sales 
*after June 30, 1999.  Laws 1997, chapter 231, article 7, section 
*47.  

*   NOTE:  Subdivision 61, as added by Laws 1995, chapter 264, 
*article 2, section 32, is effective for sales made after June 
*30, 1995, and before July 1, 1999.  Laws 1995, chapter 264, 
*article 2, section 44, as amended by Laws 1996, chapter 471, 
*article 2, section 27; and Laws 1998, chapter 389, article 8, 
*section 33. 

*   NOTE:  Subdivision 62, as added by Laws 1997, chapter 231, 
*article 7, section 19, is effective for purchases and sales 
*after June 30, 1999.  Laws 1997, chapter 231, article 7, section 
*47. 

*   NOTE:  Subdivision 78, as added by Laws 1998, chapter 389, 
*article 8, section 18, is effective for purchases made after 
*June 30, 1998, and before July 1, 2003.  Laws 1998, chapter 389, 
*article 8, section 48.

  297A.251 Repealed, 1983 c 327 s 16 

  297A.252 Repealed, 1973 c 650 art 13 s 3 

  297A.253 Repealed, 1989 c 277 art 1 s 35 

     297A.2531 Satellite broadcasting facility materials; 
  exemptions. 

    Notwithstanding the provisions of this chapter, there shall 
 be exempt from the tax imposed therein all materials and 
 supplies or equipment used or consumed in constructing, or 
 incorporated into the construction of, a new facility in 
 Minnesota for providing federal communications commission 
 licensed direct satellite broadcasting services using direct 
 broadcast satellites operating in the 12-ghz. band or fixed 
 satellite regional or national program services, as defined in 
 section 272.02, subdivision 1, clause (15), construction of 
 which was commenced after June 30, 1993, and all machinery, 
 equipment, tools, accessories, appliances, contrivances, 
 furniture, fixtures, and all technical equipment or tangible 
 personal property of any other nature or description necessary 
 to the construction and equipping of that facility in order to 
 provide those services. 

    HIST: 1993 c 375 art 9 s 39 

  297A.254 Repealed, 1987 c 268 art 8 s 8 

     297A.2545 Steel reprocessors; exemption for pollution 
  control equipment. 

    Notwithstanding the provisions of this chapter, the 
 purchase of pollution control equipment by a steel reprocessing 
 firm is exempt from the sales and use tax provided that the 
 equipment is necessary to meet state or federal emission 
 standards.  For purposes of this section "pollution control 
 equipment" means any equipment used for the purpose of 
 eliminating, preventing, or reducing air, land, or water 
 pollution during or as a result of the manufacturing process.  
 "Steel reprocessing firm" means a firm whose primary business is 
 the recovery of steel from automobiles, appliances, and other 
 steel products and the rerefining of this recovered metal into 
 new steel products. 

    HIST: 1993 c 375 art 9 s 40 

     297A.255 Aircraft; payment of taxes prior to 
  registration and licensing. 

    Subdivision 1.  Notwithstanding the provisions of section 
 297A.25, subdivision 12, no aircraft shall be registered or 
 licensed in this state unless the applicant presents proof that 
 the sales or use tax imposed by this chapter has been paid or 
 that said transaction is exempt from the imposition of the sales 
 and use tax under that chapter.  

    Subd. 2.  In the case of an aircraft purchased from a 
 dealer holding a valid sales and use tax permit provided for by 
 this chapter, the applicant shall present proof that the tax has 
 been paid to such dealer.  

    Subd. 3.  In the case of aircraft purchased from persons 
 who are not the holder of valid sales and use tax permits under 
 this chapter, the purchaser shall pay the tax to the department 
 of revenue prior to registering or licensing such aircraft 
 within this state.  The commissioner of revenue shall issue a 
 certificate stating that the sales and use tax in respect to the 
 transaction has been paid.  

    Subd. 4.  In the case of the purchase of an aircraft that 
 is exempt under this chapter, the commissioner shall issue a 
 certificate that no sales or use tax is due and owing in respect 
 to such transaction.  

    Subd. 5.  There is specifically exempted from the 
 provisions of this chapter the purchase or use of aircraft 
 previously registered in the state of Minnesota by a corporation 
 or partnership when the transfer constitutes a transfer within 
 the meaning of section 351 or 721 of the Internal Revenue Code 
 of 1986, as amended through December 31, 1989. 

    HIST: 1973 c 476 s 1; 1973 c 582 s 3; 1986 c 444; 1990 c 480 
 art 4 s 7; 1991 c 291 art 8 s 21 

     297A.256 Exemptions for certain nonprofit groups. 

    Subdivision 1.    Fundraising sales by nonprofit groups. 
  Notwithstanding the provisions of this chapter, the following 
 sales made by a "nonprofit organization" are exempt from the 
 sales and use tax. 

    (a)(1) All sales made by an organization for fundraising 
 purposes if that organization exists solely for the purpose of 
 providing educational or social activities for young people 
 primarily age 18 and under.  This exemption shall apply only if 
 the gross annual sales receipts of the organization from 
 fundraising do not exceed $10,000. 

    (2) A club, association, or other organization of 
 elementary or secondary school students organized for the 
 purpose of carrying on sports, educational, or other 
 extracurricular activities is a separate organization from the 
 school district or school for purposes of applying the $10,000 
 limit.  This paragraph does not apply if the sales are derived 
 from admission charges or from activities for which the money 
 must be deposited with the school district treasurer under 
 section 123B.49, subdivision 2, or be recorded in the same 
 manner as other revenues or expenditures of the school district 
 under section 123B.49, subdivision 4. 

    (b) All sales made by an organization for fundraising 
 purposes if that organization is a senior citizen group or 
 association of groups that in general limits membership to 
 persons age 55 or older and is organized and operated 
 exclusively for pleasure, recreation and other nonprofit 
 purposes and no part of the net earnings inure to the benefit of 
 any private shareholders.  This exemption shall apply only if 
 the gross annual sales receipts of the organization from 
 fundraising do not exceed $10,000. 

    (c) The gross receipts from the sales of tangible personal 
 property at, admission charges for, and sales of food, meals, or 
 drinks at fundraising events sponsored by a nonprofit 
 organization when the entire proceeds, except for the necessary 
 expenses therewith, will be used solely and exclusively for 
 charitable, religious, or educational purposes.  This exemption 
 does not apply to admission charges for events involving bingo 
 or other gambling activities or to charges for use of amusement 
 devices involving bingo or other gambling activities.  For 
 purposes of this paragraph, a "nonprofit organization" means any 
 unit of government, corporation, society, association, 
 foundation, or institution organized and operated for 
 charitable, religious, educational, civic, fraternal, senior 
 citizens' or veterans' purposes, no part of the net earnings of 
 which inures to the benefit of a private individual. 

    If the profits are not used solely and exclusively for 
 charitable, religious, or educational purposes, the entire gross 
 receipts are subject to tax. 

    Each nonprofit organization shall keep a separate 
 accounting record, including receipts and disbursements from 
 each fundraising event.  All deductions from gross receipts must 
 be documented with receipts and other records.  If records are 
 not maintained as required, the entire gross receipts are 
 subject to tax. 

    The exemption provided by this paragraph does not apply to 
 any sale made by or in the name of a nonprofit corporation as 
 the active or passive agent of a person that is not a nonprofit 
 corporation. 

    The exemption for fundraising events under this paragraph 
 is limited to no more than 24 days a year.  Fundraising events 
 conducted on premises leased for more than five days but less 
 than 30 days do not qualify for this exemption. 

    (d) The gross receipts from the sale or use of tickets or 
 admissions to a golf tournament held in Minnesota are exempt if 
 the beneficiary of the tournament's net proceeds qualifies as a 
 tax-exempt organization under section 501(c)(3) of the Internal 
 Revenue Code, as amended through December 31, 1994, including a 
 tournament conducted on premises leased or occupied for more 
 than four days. 

    Subd. 2.    Statewide amateur athletic games.  
 Notwithstanding section 297A.01, subdivision 3, or any other 
 provision of this chapter, the gross receipts from the following 
 sales made to or by a nonprofit corporation designated by the 
 Minnesota amateur sports commission to conduct a series of 
 statewide amateur athletic games and related events, workshops, 
 and clinics are exempt: 

    (1) sales of tangible personal property to or the storage, 
 use, or other consumption of tangible personal property by the 
 nonprofit corporation; and 

    (2) sales of tangible personal property, admission charges, 
 and sales of food, meals, and drinks by the nonprofit 
 corporation at fundraising events, athletic events, or athletic 
 facilities. 

    HIST: 1Sp1985 c 14 art 2 s 10; 1987 c 268 art 4 s 18; 1988 c 
 719 art 10 s 16; 1994 c 587 art 2 s 14; 1996 c 471 art 2 s 22; 
 1997 c 31 art 2 s 46; 1998 c 389 art 8 s 19; 1998 c 397 art 11 s 
 3 

  297A.257 Repealed, 1991 c 291 art 8 s 30 

     297A.2571 Aircraft facility materials; exemptions. 

    Materials, equipment, and supplies used or consumed in 
 constructing, or incorporated into the construction of, a heavy 
 maintenance facility for aircraft that is to be owned by the 
 state of Minnesota or one of its political subdivisions and 
 leased by an airline company, or an aircraft engine repair 
 facility described in section 116R.02, subdivision 6, are exempt 
 from the taxes imposed under this chapter and from any sales and 
 use tax imposed by a local unit of government, notwithstanding 
 any ordinance or city charter provision.  Except for equipment 
 owned or leased by a contractor, all machinery, equipment, and 
 tools necessary to the construction and equipping of that 
 facility in order to provide those services is also exempt. 

    HIST: 1991 c 350 art 1 s 19 

     297A.2572 Agriculture processing facility materials; 
  exemption. 

    Purchases of construction materials and supplies are exempt 
 from the sales and use taxes imposed under this chapter, 
 regardless of whether purchased by the owner or a contractor, 
 subcontractor, or builder, if the materials and supplies are 
 used or consumed in constructing an agriculture processing 
 facility as defined in section 469.1811 in which the total 
 capital investment in the processing facility is expected to 
 exceed $100,000,000.  The tax shall be imposed and collected as 
 if the rate under section 297A.02, subdivision 1, applied, and 
 then refunded in the manner provided in section 297A.15, 
 subdivision 5. 

    HIST: 1994 c 587 art 2 s 15; 1996 c 471 art 9 s 8 

     297A.2573 Mineral production facilities; exemption. 

    Materials, equipment, and supplies used or consumed in 
 constructing, or incorporated into the construction of exempted 
 facilities as defined in this section are exempt from the taxes 
 imposed under this chapter and from any sales and use tax 
 imposed by a local unit of government, notwithstanding any 
 ordinance or city charter provision. 

    As used in this section, "exempted facilities" means: 

    (1) a value added iron products plant, which may be either 
 a new plant or a facility incorporated into an existing plant 
 that produces iron upgraded to a minimum of 75 percent iron 
 content or any iron alloy with a total minimum metallic content 
 of 90 percent; 

    (2) a facility used for the manufacture of fluxed taconite 
 pellets as defined in section 298.24; 

    (3) a new capital project that has a total cost of over 
 $40,000,000 that is directly related to production, cost, or 
 quality at an existing taconite facility that does not qualify 
 under clause (1) or (2); and 

    (4) a new mine or minerals processing plant for any mineral 
 subject to the net proceeds tax imposed under section 298.015. 

    The tax shall be imposed and collected as if the rate under 
 section 297A.02, subdivision 1, applied, and then refunded in 
 the manner provided in section 297A.15, subdivision 5. 

    HIST: 1994 c 587 art 6 s 1; 1996 c 471 art 9 s 9 

  297A.258 Repealed, 1993 c 375 art 1 s 7 

     297A.259 Lottery tickets; in lieu tax. 

    Sales of state lottery tickets are exempt from the tax 
 imposed under section 297A.02.  The state lottery must on or 
 before the 20th day of each month transmit to the commissioner 
 of revenue an amount equal to the gross receipts from the sale 
 of lottery tickets for the previous month multiplied by the tax 
 rate under section 297A.02, subdivision 1.  The resulting 
 payment is in lieu of the sales tax that otherwise would be 
 imposed by this chapter.  The commissioner shall deposit the 
 money transmitted as provided by section 297A.44 and the money 
 must be treated as other proceeds of the sales tax.  Gross 
 receipts for purposes of this section mean the proceeds of the 
 sale of tickets before deduction of a commission or other 
 compensation paid to the vendor or retailer for selling tickets. 

    HIST: 1Sp1989 c 1 art 12 s 10; 1991 c 233 s 109; 1991 c 291 
 art 2 s 10; 1997 c 7 art 1 s 121 

     297A.26 Offset against other taxes. 

    Subdivision 1. Repealed, 1990 c 480 art 1 s 45 

    Subd. 2.  The taxpayer may offset against the taxes payable 
 with respect to any reporting period the amount of taxes imposed 
 by sections 297A.01 to 297A.44 previously paid as a result of 
 any transaction the consideration for which became a debt owed 
 to the taxpayer which became uncollectible during such reporting 
 period, but only in proportion to the portion of such debt which 
 became uncollectible.  

    Subd. 3. Repealed, 1987 c 268 art 17 s 42 

    Subd. 4. Repealed, 1990 c 480 art 1 s 45 

    HIST: Ex1967 c 32 art 13 s 26; 1983 c 327 s 7; 1987 c 268 art 
 4 s 19; art 17 s 27 

  297A.27 Repealed, 1990 c 480 art 1 s 45 

  297A.275 Repealed, 1990 c 480 art 1 s 45 

     297A.28 Security. 

    On finding it necessary to insure compliance with sections 
 297A.01 to 297A.44 the commissioner may require a retailer 
 subject thereto to deposit with the commissioner security in 
 such form and in such amount as the commissioner may determine 
 but not more than twice the estimated average liability for the 
 period for which the returns are required to be filed, or 
 $10,000, whichever amount is the lesser.  The amount of security 
 may be increased or decreased by the commissioner, subject to 
 the limitations herein provided.  The commissioner may sell 
 property deposited as security at public auction if necessary in 
 order to recover any tax or any amount required to be collected, 
 including interest and penalties, if any.  Notice of the sale 
 must be served upon the person who deposited the security 
 personally, or by mail in the manner hereinafter prescribed for 
 the service of a notice of a deficiency.  After any sale any 
 surplus above the amount due not required as security under this 
 section shall be returned to the person who deposited the 
 security.  In lieu of security, the commissioner may require a 
 retailer to file a bond, issued by a surety company authorized 
 to transact business in this state and approved by the 
 commissioner of commerce as to solvency and responsibility.  

    HIST: Ex1967 c 32 art 13 s 28; 1983 c 289 s 114 subd 1; 1983 c 
 327 s 10; 1984 c 655 art 1 s 92; 1986 c 444 

  297A.29 Repealed, 1990 c 480 art 2 s 18 

  297A.30 Repealed, 1990 c 480 art 1 s 45 

  297A.31 Repealed, 1990 c 480 art 1 s 45 

  297A.32 Repealed, 1990 c 480 art 1 s 45 

     297A.33 Jeopardy assessment and collection; protection 
  against evasion. 

    Subdivision 1. Repealed, 1990 c 480 art 1 s 45 

    Subd. 2.  If the commissioner has reason to believe that 
 the person required to file the return is about to leave the 
 state or remove the person's property from this state with the 
 purpose of evading the tax and penalties imposed by sections 
 297A.01 to 297A.44, or that the collection of such tax will be 
 jeopardized by delays incident to other methods of collection, 
 the commissioner may immediately declare such person's reporting 
 period at an end and assess a tax on the basis of the 
 commissioner's own knowledge or information available, demand 
 its immediate payment; and, if payment is not immediately made, 
 collect the tax by any method prescribed in chapter 270.  It 
 shall not be a defense to any assessment made under this section 
 that the tax period has not terminated, or that the time 
 otherwise allowed by law for filing a return has not expired, or 
 that the notices otherwise required by law for making an 
 assessment have not been given, or that the time otherwise 
 allowed by law for taking or prosecuting an appeal or for paying 
 the tax has not expired. 

    Subd. 3. Repealed, 1990 c 480 art 1 s 45 

    Subd. 4. Repealed, 1990 c 480 art 1 s 45 

    Subd. 5. Repealed, 1990 c 480 art 1 s 45 

    Subd. 6. Repealed, 1982 c 523 art 2 s 49 

    HIST: Ex1967 c 32 art 13 s 33; 1969 c 544 s 1,2; 1978 c 767 s 
 33; 1982 c 523 art 2 s 43; 1986 c 444 

  297A.34 Repealed, 1990 c 480 art 1 s 45 

  297A.35 Repealed, 1990 c 480 art 1 s 45 

  297A.36 Repealed, 1982 c 523 art 2 s 49 

  297A.37 Repealed, 1990 c 480 art 2 s 18 

  297A.38 Repealed, 1995 c 264 art 13 s 23 

    297A.39 Subdivision 1. Repealed, 1990 c 480 art 1 
 s 45 

    Subd. 2. Repealed, 1990 c 480 art 1 s 45 

    Subd. 2a. Repealed, 1990 c 480 art 1 s 45 

    Subd. 3. Repealed, 1990 c 480 art 1 s 45 

    Subd. 4. Repealed, 1990 c 480 art 1 s 45 

    Subd. 5. Repealed, 1990 c 480 art 2 s 18 

    Subd. 6. Repealed, 1982 c 523 art 2 s 49 

    Subd. 7. Repealed, 1990 c 480 art 1 s 45 

    Subd. 8. Repealed, 1990 c 480 art 1 s 45 

    Subd. 9. Repealed, 1991 c 291 art 16 s 12 

  297A.391 Repealed, 1987 c 268 art 14 s 25 

  297A.40 Repealed, 1990 c 480 art 1 s 45 

  297A.41 Repealed, 1990 c 480 art 1 s 45 

  297A.42 Repealed, 1990 c 480 art 1 s 45 

  297A.43 Repealed, 1989 c 184 art 1 s 20 

  297A.431 Repealed, 1990 c 480 art 10 s 12 

     297A.44 Deposit of revenues; costs of administration; 
  appropriation. 

    Subdivision 1.  (a) Except as provided in paragraphs (b) to 
 (d), all revenues, including interest and penalties, derived 
 from the excise and use taxes imposed by sections 297A.01 to 
 297A.44 shall be deposited by the commissioner in the state 
 treasury and credited to the general fund.  

    (b) All excise and use taxes derived from sales and use of 
 property and services purchased for the construction and 
 operation of an agricultural resource project, from and after 
 the date on which a conditional commitment for a loan guaranty 
 for the project is made pursuant to section 41A.04, subdivision 
 3, shall be deposited in the Minnesota agricultural and economic 
 account in the special revenue fund.  The commissioner of 
 finance shall certify to the commissioner the date on which the 
 project received the conditional commitment.  The amount 
 deposited in the loan guaranty account shall be reduced by any 
 refunds and by the costs incurred by the department of revenue 
 to administer and enforce the assessment and collection of the 
 taxes.  

    (c) All revenues, including interest and penalties, derived 
 from the excise and use taxes imposed on sales and purchases 
 included in section 297A.01, subdivision 3, paragraphs (d) and 
 (k), clauses (1) and (2), must be deposited by the commissioner 
 in the state treasury, and credited as follows: 

    (1) first to the general obligation special tax bond debt 
 service account in each fiscal year the amount required by 
 section 16A.661, subdivision 3, paragraph (b); and 

    (2) after the requirements of clause (1) have been met, the 
 balance must be credited to the general fund. 

    (d) The revenues, including interest and penalties, 
 collected under section 297A.135, subdivision 5, shall be 
 deposited by the commissioner in the state treasury and credited 
 to the general fund.  By July 15 of each year the commissioner 
 shall transfer to the highway user tax distribution fund an 
 amount equal to the excess fees collected under section 
 297A.135, subdivision 5, for the previous calendar year. 

    Subd. 2. Repealed, 1990 c 480 art 1 s 45 

    Subd. 3.  Repealed, 1969 c 399 s 51 

    Subd. 4.  Repealed, 1994 c 587 art 2 s 22 

    HIST: Ex1967 c 32 art 13 s 44; 1969 c 399 s 38,39; 1984 c 502 
 art 10 s 8; 1987 c 386 art 9 s 21; 1987 c 400 s 53; 1988 c 633 s 
 6; 1989 c 335 art 4 s 80; 1Sp1989 c 1 art 19 s 6; 1991 c 291 art 
 2 s 11,12; 1994 c 587 art 2 s 16; 1996 c 471 art 9 s 10; 1997 c 
 31 art 2 s 47; 1997 c 231 art 13 s 5; 3Sp1997 c 3 s 24 

  297A.45 Repealed, 1997 c 231 art 13 s 20 

     297A.46 Local governments exempt from local sales taxes. 

    Notwithstanding any other law, ordinance, or charter 
 provision, no political subdivision of the state shall be 
 required to pay any general sales tax imposed by a political 
 subdivision of the state.  

    HIST: 1992 c 511 art 8 s 24; 1996 c 471 art 9 s 14 

     297A.47 Reporting of sales tax on Minnesota governments. 

    The commissioner shall estimate the amount of revenues 
 derived from imposing the tax under this chapter and chapter 
 297B on state agencies and political subdivisions for each 
 fiscal year and shall report this amount to the commissioner of 
 finance before the time for filing reports for the fiscal year 
 with the United States Department of Commerce.  The commissioner 
 of finance in reporting the sales tax and sales tax on motor 
 vehicles collections to the United States Department of Commerce 
 shall exclude this amount from the sales and motor vehicle 
 collections.  Sales tax and sales tax on motor vehicles revenues 
 received from political subdivisions must be reported as 
 intergovernmental grants or similar intergovernmental revenue.  
 The amount of the sales tax and sales tax on motor vehicles paid 
 by state agencies must be reported as reduced state expenditures.

    HIST: 1992 c 511 art 8 s 25; 1994 c 587 art 2 s 21 

     297A.48 Local sales tax rules. 

    Subdivision 1.    Authorization; scope.  (a) A political 
 subdivision of this state may impose a general sales tax if 
 permitted by special law or if the subdivision enacted and 
 imposed the tax before the effective date of section 477A.016 
 and its predecessor provision. 

    (b) This section governs the imposition of a general sales 
 tax by the political subdivision.  The provisions of this 
 section preempt the provisions of any special law: 

    (1) enacted before June 2, 1997, or 

    (2) enacted on or after June 2, 1997, that does not 
 explicitly exempt the special law provision from this section's 
 rules by reference. 

    (c) This section does not apply to or preempt a sales tax 
 on motor vehicles or a special excise tax on motor vehicles. 

    Subd. 2.    Tax base.  (a) The tax applies to sales 
 taxable under this chapter that occur within the political 
 subdivision. 

    (b) Taxable services are subject to a political 
 subdivision's sales tax, if they are performed either: 

    (1) within the political subdivision, or 

    (2) partly within and partly without the political 
 subdivision and more of the service is performed within the 
 political subdivision, based on the cost of performance. 

    Subd. 3.    Tax rate.  (a) The tax rate is as specified 
 in the special law authorization and as imposed by the political 
 subdivision. 

    (b) The full political subdivision rate applies to any 
 sales that are taxed at a state rate less than or more than the 
 state general sales and use tax rate. 

    Subd. 4.    Use tax.  A compensating use tax applies, at 
 the same rate as the sales tax, on the use, storage, 
 distribution, or consumption of tangible personal property or 
 taxable services. 

    Subd. 5.    Exemptions.  (a) All goods or services that 
 are otherwise exempt from taxation under this chapter are exempt 
 from a political subdivision's tax. 

    (b) The gross receipts from the sale of tangible personal 
 property that meets the requirement of section 297A.25, 
 subdivision 5, are exempt, except the qualification test applies 
 based on the boundaries of the political subdivision instead of 
 the state of Minnesota. 

    (c) All mobile transportation equipment, and parts and 
 accessories attached to or to be attached to the equipment are 
 exempt, if purchased by a holder of a motor carrier direct pay 
 permit under section 297A.211.  

    Subd. 6.    Credit for other local taxes.  If a person 
 paid sales or use tax to another political subdivision on 
 tangible personal property or another item subject to tax under 
 this section, a credit applies against the tax imposed under 
 this section.  The credit equals the tax the person paid to the 
 other political subdivision for the item.  

    Subd. 7.    Enforcement; collection; and administration. 
  (a) The commissioner of revenue shall collect the taxes 
 subject to this section.  The commissioner may collect the tax 
 with the state sales and use tax.  All taxes under this section 
 are subject to the same penalties, interest, and enforcement 
 provisions as apply to the state sales and use tax. 

    (b) A request for a refund of state sales tax paid in 
 excess of the amount of tax legally due includes a request for a 
 refund of the political subdivision taxes paid on the goods or 
 services.  The commissioner must refund to the taxpayer the full 
 amount of the political subdivision taxes paid on exempt sales 
 or use. 

    (c) A political subdivision that is collecting and 
 administering its own sales and use tax before January 1, 1998, 
 may elect to be exempt from this subdivision and subdivision 8. 

    Subd. 8.    Revenues; cost of collection.  The 
 commissioner shall remit the proceeds of the tax, less refunds 
 and a proportionate share of the cost of collection, at least 
 quarterly, to the political subdivision.  The commissioner shall 
 deduct from the proceeds remitted an amount that equals 

    (1) the direct and indirect costs of the department to 
 administer, audit, and collect the political subdivision's tax, 
 plus 

    (2) the political subdivision's proportionate share of the 
 indirect cost of administering all taxes under this section. 

    Subd. 9.    Effective dates; notification.  (a) A 
 political subdivision may impose a tax under this section 
 starting only on the first day of a calendar quarter.  A 
 political subdivision may repeal a tax under this section 
 stopping only on the last day of a calendar quarter. 

    (b) The political subdivision must notify the commissioner 
 of revenue at least 90 days before imposing or repealing a tax 
 under this section. 

    Subd. 9a.    Local resolution before application for 
 authority.  Before the governing body of a political 
 subdivision requests legislative approval of a special law for a 
 local sales tax that is administered under this section, it 
 shall adopt a resolution indicating its approval of the tax.  
 The resolution must include, at a minimum, information on the 
 proposed tax rate, how the revenues will be used, the total 
 revenue that will be raised before the tax expires, and the 
 estimated length of time that the tax will be in effect. 

    Subd. 10.    Application.  This section applies to all 
 local sales taxes authorized on or after June 2, 1997.  Starting 
 January 1, 2000, this section applies to all local sales taxes 
 that were authorized before June 2, 1997. 

    HIST: 1997 c 231 art 7 s 30; 1998 c 254 art 1 s 81,82; 1998 c 
 389 art 8 s 20 

  297A.51 Repealed, Ex1971 c 31 art 31 s 1 

  297A.52 Repealed, Ex1971 c 31 art 31 s 1 

  297A.53 Repealed, Ex1971 c 31 art 31 s 1 

  297A.54 Repealed, Ex1971 c 31 art 31 s 1 

  297A.55 Repealed, Ex1971 c 31 art 31 s 1 

  297A.56 Repealed, Ex1971 c 31 art 31 s 1 

  297A.57 Repealed, Ex1971 c 31 art 31 s 1 

  297A.58 Repealed, Ex1971 c 31 art 31 s 1 

  297A.59 Repealed, Ex1971 c 31 art 31 s 1 

  297A.60 Repealed, Ex1971 c 31 art 31 s 1