Bill Text: MN HF1659 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Nursing homes and boarding care homes most purchases exempted from sales and use tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-21 - Introduction and first reading, referred to Taxes [HF1659 Detail]
Download: Minnesota-2013-HF1659-Introduced.html
1.2relating to taxation; sales and use; exempting most purchases by certain nursing
1.3homes and boarding care homes;amending Minnesota Statutes 2012, section
1.4297A.70, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.70, is amended by adding a
1.7subdivision to read:
1.8 Subd. 18. Nursing homes and boarding care homes. (a) All sales, except those
1.9listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
1.10care home certified as a nursing facility under title 19 of the Social Security Act are
1.11exempt if the facility:
1.12(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
1.13Internal Revenue Code; and
1.14(2) is certified to participate in the medical assistance program under title 19 of the
1.15Social Security Act, or certifies to the commissioner that it does not discharge residents
1.16due to the inability to pay.
1.17(b) This exemption does not apply to the following sales:
1.18(1) building, construction, or reconstruction materials purchased by a contractor
1.19or a subcontractor as a part of a lump-sum contract or similar type of contract with a
1.20guaranteed maximum price covering both labor and materials for use in the construction,
1.21alteration, or repair of a building or facility;
1.22(2) construction materials purchased by tax-exempt entities or their contractors to
1.23be used in constructing buildings or facilities that will not be used principally by the
1.24tax-exempt entities;
2.1(3) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
2.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.3297A.67, subdivision 2 ; and
2.4(4) leasing of a motor vehicle as defined in section297B.01, subdivision 11 , except
2.5as provided in paragraph (c).
2.6(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.7297B.01, subdivision 11 , only if the vehicle is:
2.8(1) a truck, as defined in section168.002 ; a bus, as defined in section
168.002 ; or a
2.9passenger automobile, as defined in section168.002 , if the automobile is designed and
2.10used for carrying more than nine persons including the driver; and
2.11(2) intended to be used primarily to transport tangible personal property or residents
2.12of the nursing home or boarding care home.
2.13EFFECTIVE DATE.This section is effective for sales and purchases made after
2.14June 30, 2013.
1.3homes and boarding care homes;amending Minnesota Statutes 2012, section
1.4297A.70, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.70, is amended by adding a
1.7subdivision to read:
1.8 Subd. 18. Nursing homes and boarding care homes. (a) All sales, except those
1.9listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
1.10care home certified as a nursing facility under title 19 of the Social Security Act are
1.11exempt if the facility:
1.12(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
1.13Internal Revenue Code; and
1.14(2) is certified to participate in the medical assistance program under title 19 of the
1.15Social Security Act, or certifies to the commissioner that it does not discharge residents
1.16due to the inability to pay.
1.17(b) This exemption does not apply to the following sales:
1.18(1) building, construction, or reconstruction materials purchased by a contractor
1.19or a subcontractor as a part of a lump-sum contract or similar type of contract with a
1.20guaranteed maximum price covering both labor and materials for use in the construction,
1.21alteration, or repair of a building or facility;
1.22(2) construction materials purchased by tax-exempt entities or their contractors to
1.23be used in constructing buildings or facilities that will not be used principally by the
1.24tax-exempt entities;
2.1(3) lodging as defined under section
2.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.3
2.4(4) leasing of a motor vehicle as defined in section
2.5as provided in paragraph (c).
2.6(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.7
2.8(1) a truck, as defined in section
2.9passenger automobile, as defined in section
2.10used for carrying more than nine persons including the driver; and
2.11(2) intended to be used primarily to transport tangible personal property or residents
2.12of the nursing home or boarding care home.
2.13EFFECTIVE DATE.This section is effective for sales and purchases made after
2.14June 30, 2013.
