2000 Minnesota Statutes

     297A.71 Construction exemptions. 

    Subdivision 1.    Scope.  The gross receipts from the 
 sale of, and storage, distribution, use, or consumption of the 
 tangible personal property contained in this section are 
 specifically exempted from the taxes imposed by this chapter.  
 Building materials, equipment, and supplies and other items 
 exempt under this section are exempt regardless of whether 
 purchased by the owner or a contractor, subcontractor, or 
 builder. 

    Subd. 2.    State convention center.  Building materials 
 and supplies for constructing improvements to a state convention 
 center located in a city outside the metropolitan area as 
 defined in section 473.121, subdivision 2, and governed by an 
 11-person board of which four are appointed by the governor are 
 exempt if 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. 3.    Correctional facilities.  Building materials 
 and supplies for constructing or improving an adult or juvenile 
 correctional facility by a county, home rule charter city, or 
 statutory city are exempt if the project is mandated by state or 
 federal law, rule, or regulation.  The tax must be imposed and 
 collected as if the rate under section 297A.62, subdivision 1, 
 applied and then refunded in the manner provided in section 
 297A.75. 

    Subd. 4.    Lake Superior Center.  Building materials 
 and supplies for construction of the Lake Superior Center are 
 exempt. 

    Subd. 5.    Science Museum.  Building materials and 
 supplies for construction of the Science Museum of Minnesota are 
 exempt. 

    Subd. 6.    Business incubator and industrial park.  
 Building materials and supplies for construction of a facility 
 that includes a business incubator and industrial park are 
 exempt if the facility: 

    (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. 7.    Alfalfa processing facility.  Building 
 materials and supplies for constructing a facility that either 
 develops market-value agricultural products made from alfalfa 
 leaf material, or produces biomass energy fuel or electricity 
 from alfalfa stems in accordance with the biomass mandate 
 imposed under section 216B.2424 are exempt if the total capital 
 investment made in the value-added agricultural products and 
 biomass electric generation facilities is at least $50,000,000. 

    Subd. 8.    Wood waste cogeneration facility.  Building 
 materials and supplies for constructing, equipping, or modifying 
 a district heating and cooling system cogeneration facility are 
 exempt if the facility: 

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

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

    Subd. 9.    Direct satellite broadcasting facility.  
 Building materials and supplies for constructing 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 16, are exempt if construction of 
 the facility was commenced after June 30, 1993.  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 are also exempt. 

    Subd. 10.    Aircraft heavy maintenance facility.  
 Materials, equipment, and supplies used or consumed in 
 constructing 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.  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 are also exempt. 

    Subd. 11.    Building materials; disabled veterans.  
 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.  The 
 tax must be imposed and collected as if the rate under section 
 297A.62, subdivision 1, applied and then refunded in the manner 
 provided in section 297A.75. 

    Subd. 12.    Chair lifts, ramps, elevators.  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.  The tax must be imposed and collected as if the rate 
 under section 297A.62, subdivision 1, applied and then refunded 
 in the manner provided in section 297A.75. 

    Subd. 13.    Agriculture processing facility materials.  
 Building materials and supplies for 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 are exempt.  The tax must be imposed and 
 collected as if the rate under section 297A.62, subdivision 1, 
 applied, and then refunded in the manner provided in section 
 297A.75. 

    Subd. 14.    Mineral production facilities.  Building 
 materials, equipment, and supplies used for the construction of 
 the following mineral production facilities are exempt. 

    The mineral production facilities that qualify for this 
 exemption are: 

    (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 must be imposed and collected as if the rate under 
 section 297A.62, subdivision 1, applied, and then refunded in 
 the manner provided in section 297A.75. 

    Subd. 15.    Minneapolis convention center.  Materials, 
 supplies, or equipment used or consumed in the construction, 
 equipment, improvement, or expansion of the Minneapolis 
 convention center are exempt. 

    Subd. 16.    RiverCentre arena.  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. 

    Subd. 17.    Environmental learning center.  
 Construction materials and supplies are exempt 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; Laws 1996, chapter 463, section 7, subdivision 26; and Laws 
 1997, chapter 246, section 24.  The tax must be calculated and 
 paid as if the rate in section 297A.62, subdivision 1, was in 
 effect and a refund applied for in the manner prescribed in 
 section 297A.75. 

    Subd. 18.    Soybean oilseed processing and refining 
 facility.  Construction materials and supplies are exempt 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. 19.    Earle Brown Heritage Center.  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.  This subdivision 
 is effective for purchases made before July 1, 2003. 

    Subd. 20.    Construction materials and supplies; beef 
 processing facility.  Materials and supplies used or consumed 
 in, and equipment incorporated into, the expansion, remodeling, 
 or improvement of a facility used for cattle slaughtering are 
 exempt if:  

    (1) the cost of the project is expected to exceed 
 $15,000,000; 

    (2) the expansion, remodeling, or improvement of the 
 facility will be used to fabricate beef; 

    (3) the number of jobs at the facility is expected to 
 increase by at least 150 when the project is completed; and 

    (4) the project is expected to be completed by December 31, 
 2001.  

    Subd. 21.    Construction materials and equipment; biomass 
 electrical generating facility.  Materials and supplies used 
 or consumed in, and equipment incorporated into, the 
 construction, improvement, or expansion of a facility using 
 biomass to generate electricity are exempt if: 

    (1) the facility exclusively utilizes residue wood, 
 sawdust, bark, chipped wood, or brush to generate electricity; 

    (2) the facility utilizes a reciprocated grate combination 
 system; and 

    (3) the total gross capacity of the facility is 15 to 21 
 megawatts.  

    Subd. 22.    Materials used to make residential property 
 handicapped accessible.  Building materials and equipment sold 
 to, or stored, used, or consumed by, a nonprofit organization 
 are exempt if: 

    (1) the materials and equipment are used or incorporated 
 into modifying an existing residential structure to make it 
 handicapped accessible; and 

    (2) the materials and equipment used in the modification 
 would qualify for an exemption under either subdivision 11 or 12 
 if made by the current owner of the residence. 

    For purposes of this subdivision, "nonprofit organization" 
 means any nonprofit corporation, society, association, 
 foundation, or institution organized and operated exclusively 
 for charitable, religious, educational, or civic purposes; or a 
 veterans' group exempt from federal taxation under section 
 501(c), clause (19), of the Internal Revenue Code. 

    HIST: 2000 c 418 art 1 s 15,44 subd 3; 2000 c 490 art 8 s 12 

*   NOTE:  This section, as added by Laws 2000, chapter 418, 
*article 1, section 15, is effective for sales and purchases 
*occurring after June 30, 2001.  Laws 2000, chapter 418, article 
*1, section 46.