2000 Minnesota Statutes

     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 9, 
 clauses (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; maple syrup harvesting; 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, 
 trees and shrubs, 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; 

    (7) aquaculture production equipment as defined in 
 subdivision 19; and 

    (8) equipment used for maple syrup harvesting.  

    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; 2000 c 490 art 8 
 s 4,5 

*   NOTE:  This section is repealed by Laws 2000, chapter 418, 
*article 1, section 45, effective July 1, 2001.  Laws 2000, 
*chapter 418, article 1, section 46.