Bill Text: MN HF1909 | 2013-2014 | 88th Legislature | Introduced

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Bill Title: Gift tax and business-to-business taxes repealed, wheelage tax increase rescinded, conservation easement valuation reductions reinstated, school board authority to authorize referendum levies rescinded, student achievement levy repealed, and prior animal waste technician fee and licensing requirements reverted to.

Sponsorship: Partisan Bill (Republican 3)

Status: (Introduced - Dead) 2014-02-27 - Authors added Runbeck and Erickson, S. [HF1909 Detail]

Download: Minnesota-2013-HF1909-Introduced.html

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A bill for an act

relating to taxation; repealing the gift tax; repealing certain business-to-business
taxes; rescinding the increase in the wheelage tax; reinstating valuation
reductions for conservation easements; rescinding authority for school boards to
authorize referendum levies; repealing the student achievement levy; reverting
to prior animal waste technician fee and licensing requirements; amending
Minnesota Statutes 2012, section 297A.68, by adding a subdivision; Minnesota
Statutes 2013 Supplement, sections 18C.430, subdivisions 1, 3, 4, 5, 7; 18C.433,
subdivision 1; 126C.17, subdivisions 5, 6, 7; 163.051, subdivisions 1, 2, 2a,
3, by adding a subdivision; 270B.01, subdivision 8; 270B.03, subdivision 1;
273.117; 291.005, subdivision 1; 291.03, subdivision 1; 297A.61, subdivision
3; 297A.993, subdivision 1; repealing Minnesota Statutes 2013 Supplement,
sections 126C.13, subdivisions 3a, 3b, 3c; 126C.17, subdivision 9a; 292.16;
292.17; 292.18; 292.19; 292.20; 292.21.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2013 Supplement, section 18C.430, subdivision 1, is
amended to read:
    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), a person may
not manage or apply animal wastes to the land for hire:
(1) without a valid commercial animal waste technician applicator license;
(2) without a valid commercial animal waste technician site manager license; or
(3) as a sole proprietorship, company, partnership, or corporation unless a
commercial animal waste technician company license is held and a commercial animal
waste technical site manager is employed by the entity.
(b) A person managing or applying animal wastes for hire must have a valid
license identification card when managing or applying animal wastes for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.
(c) A commercial animal waste technician applicator must have a minimum of two
hours of certification training in animal waste management and may only A person who
is not a licensed commercial animal waste technician who has had at least two hours of
training or experience in animal waste management may manage or apply animal waste
for hire under the supervision of a commercial animal waste technician site manager. The
commissioner shall prescribe the conditions of the supervision and the form and format
required on the certification training.
(d) This section does not apply to a person managing or applying animal waste on
land managed by the person's employer.

    Sec. 2. Minnesota Statutes 2013 Supplement, section 18C.430, subdivision 3, is
amended to read:
    Subd. 3. License. (a) A commercial animal waste technician license, including
applicator, site manager, and company:
(1) is valid for one year three years and expires on December 31 of the third year for
which it is issued, unless suspended or revoked before that date;
(2) is not transferable to another person; and
(3) must be prominently displayed to the public in the commercial animal waste
technician's place of business.
(b) The commercial animal waste technician company license number assigned by
the commissioner must appear on the application equipment when a person manages
or applies animal waste for hire.

    Sec. 3. Minnesota Statutes 2013 Supplement, section 18C.430, subdivision 4, is
amended to read:
    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
animal waste technician license on forms and in the manner required by the commissioner
and must include the application fee. The commissioner shall prescribe and administer
an examination or equivalent measure to determine if the applicant is eligible for the
commercial animal waste technician license, site manager license, or applicator license.
(b) The commissioner of agriculture, in cooperation with University of Minnesota
Extension and appropriate educational institutions, shall establish and implement a
program for training and licensing commercial animal waste technicians.

    Sec. 4. Minnesota Statutes 2013 Supplement, section 18C.430, subdivision 5, is
amended to read:
    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
agriculture to renew a commercial animal waste technician license and must include the
application fee. The commissioner may renew a commercial animal waste technician
applicator or site manager license, subject to reexamination, attendance at workshops
approved by the commissioner, or other requirements imposed by the commissioner to
provide the animal waste technician with information regarding changing technology and
to help ensure a continuing level of competence and ability to manage and apply animal
wastes properly. The applicant may renew a commercial animal waste technician license
within 12 months after expiration of the license without having to meet initial testing
requirements. The commissioner may require additional demonstration of animal waste
technician qualification if a person has had a license suspended or revoked or has had a
history of violations of this section.
(b) An applicant who meets renewal requirements by reexamination instead
of attending workshops must pay a fee for the reexamination as determined by the
commissioner.

    Sec. 5. Minnesota Statutes 2013 Supplement, section 18C.430, subdivision 7, is
amended to read:
    Subd. 7. Application fee. (a) A person initially applying for or renewing
a commercial animal waste technician applicator license must pay a nonrefundable
application fee of $25 $50 and a fee of $10 for each additional identification card
requested. A person initially applying for or renewing a commercial animal waste
technician site manager license must pay a nonrefundable application fee of $50. A person
initially applying for or renewing a commercial animal waste technician company license
must pay a nonrefundable application fee of $100.
(b) A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.
(c) An application for a duplicate commercial animal waste technician license must
be accompanied by a nonrefundable fee of $10.

    Sec. 6. Minnesota Statutes 2013 Supplement, section 18C.433, subdivision 1, is
amended to read:
    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
animal waste technician site manager or commercial animal waste technician applicator
may apply animal waste from a feedlot that:
(1) has a capacity of 300 animal units or more; and
(2) does not have an updated manure management plan that meets the requirements
of Pollution Control Agency rules.

    Sec. 7. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 5, is
amended to read:
    Subd. 5. Referendum equalization revenue. (a) A district's referendum
equalization revenue equals the sum of the first tier referendum equalization revenue
and the second tier referendum equalization revenue, and the third tier referendum
equalization revenue.
(b) A district's first tier referendum equalization revenue equals the district's first tier
referendum equalization allowance times the district's adjusted pupil units for that year.
(c) A district's first tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $300 $760.
(d) A district's second tier referendum equalization revenue equals the district's
second tier referendum equalization allowance times the district's adjusted pupil units for
that year.
(e) A district's second tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $760 25 percent of the formula
allowance, minus the district's first tier referendum equalization allowance.
(f) A district's third tier referendum equalization revenue equals the district's third
tier referendum equalization allowance times the district's adjusted pupil units for that year.
(g) A district's third tier referendum equalization allowance equals the lesser of
the district's referendum allowance under subdivision 1 or 25 percent of the formula
allowance, minus the sum of the district's first tier referendum equalization allowance and
second tier referendum equalization allowance.
(h) (f) Notwithstanding paragraph (g) (e), the third second tier referendum allowance
for a district qualifying for secondary sparsity revenue under section 126C.10, subdivision
7 , or elementary sparsity revenue under section 126C.10, subdivision 8, equals the
district's referendum allowance under subdivision 1 minus the sum of the district's first tier
referendum equalization allowance and second tier referendum equalization allowance.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
and later.

    Sec. 8. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
amended to read:
    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy, and the second tier referendum equalization levy, and the third tier
referendum equalization levy.
(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $880,000 $510,000.
(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $510,000 $290,000.
(d) A district's third tier referendum equalization levy equals the district's third
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $290,000.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
and later.

    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7, is
amended to read:
    Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
equals the difference between its referendum equalization revenue and levy.
(b) If a district's actual levy for first, or second, or third tier referendum equalization
revenue is less than its maximum levy limit for that tier, aid shall be proportionately
reduced.
(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
referendum revenue, must not exceed 25 percent of the formula allowance times the
district's adjusted pupil units. A district's referendum levy is increased by the amount of
any reduction in referendum aid under this paragraph.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
and later.

    Sec. 10. Minnesota Statutes 2013 Supplement, section 163.051, subdivision 1, is
amended to read:
    Subdivision 1. Tax authorized. (a) Except as provided in paragraph (c) (b), the
board of commissioners of each metropolitan county is authorized to levy by resolution a
wheelage tax at the rate specified in paragraph (b) of $5 per year by resolution, on each
motor vehicle that is kept in such county when not in operation and that is subject to
annual registration and taxation under chapter 168. The board may provide by resolution
for collection of the wheelage tax by county officials or it may request that the tax be
collected by the state registrar of motor vehicles. The state registrar of motor vehicles
shall collect such tax on behalf of the county if requested, as provided in subdivision 2.
    (b) The wheelage tax under this section is at the rate of:
(1) from January 1, 2014, through December 31, 2017, $10 per year for each county
that authorizes the tax; and
(2) on and after January 1, 2018, up to $20 per year, in any increment of a whole
dollar, as specified by each county that authorizes the tax.
    (c) (b) The following vehicles are exempt from the wheelage tax:
    (1) motorcycles, as defined in section 169.011, subdivision 44;
    (2) motorized bicycles, as defined in section 169.011, subdivision 45; and
    (3) motorized foot scooters, as defined in section 169.011, subdivision 46.
(d) (c) For any metropolitan county that authorized the tax prior to May 24, 2013
2014, the wheelage tax continues at the rate provided under paragraph (b) (a). For any
other county that authorized a wheelage tax under this section, the wheelage tax is repealed
effective for any registration period under chapter 168, starting on or after January 1, 2015.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2015.

    Sec. 11. Minnesota Statutes 2013 Supplement, section 163.051, subdivision 2, is
amended to read:
    Subd. 2. Collection by registrar of motor vehicles. The wheelage tax levied by
any metropolitan county, if made collectible by the state registrar of motor vehicles, shall
be certified by the county auditor to the registrar not later than August 1 in the year before
the calendar year or years for which the tax is levied, and the registrar shall collect such tax
with the motor vehicle taxes on the affected vehicles for such year or years. Every owner
and every operator of such a motor vehicle shall furnish to the registrar all information
requested by the registrar. No state motor vehicle tax on any such motor vehicle for any such
year shall be received or deemed paid unless the applicable wheelage tax is paid therewith.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2015.

    Sec. 12. Minnesota Statutes 2013 Supplement, section 163.051, subdivision 2a,
is amended to read:
    Subd. 2a. Tax proceeds deposited; costs of collection; appropriation.
Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall
deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
county wheelage tax account of each metropolitan county. The amount necessary to pay
the costs of collection of said tax is appropriated from the county wheelage tax account of
each metropolitan county to the state registrar of motor vehicles.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2015.

    Sec. 13. Minnesota Statutes 2013 Supplement, section 163.051, subdivision 3, is
amended to read:
    Subd. 3. Distribution to county; appropriation. On a monthly basis, the registrar
of motor vehicles shall issue a warrant in favor of the treasurer of each metropolitan
county for which the registrar has collected a wheelage tax in the amount of such tax then
on hand in the county wheelage tax account. There is hereby appropriated from the county
wheelage tax account each year, to each county entitled to payments authorized by this
section, sufficient moneys to make such payments.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2015.

    Sec. 14. Minnesota Statutes 2013 Supplement, section 163.051, is amended by adding
a subdivision to read:
    Subd. 6a. Metropolitan county defined. "Metropolitan county" means any of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2015.

    Sec. 15. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is
amended to read:
    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
stated otherwise, "Minnesota tax laws" means:
    (1) the taxes, refunds, and fees administered by or paid to the commissioner under
chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax
administered by the commissioner pursuant to any tax agreement between the state and
the Indian tribal government, and includes any laws for the assessment, collection, and
enforcement of those taxes, refunds, and fees; and
    (2) section 273.1315.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 16. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is
amended to read:
    Subdivision 1. Who may inspect. Returns and return information must, on request,
be made open to inspection by or disclosure to the data subject. The request must be made
in writing or in accordance with written procedures of the chief disclosure officer of the
department that have been approved by the commissioner to establish the identification
of the person making the request as the data subject. For purposes of this chapter, the
following are the data subject:
(1) in the case of an individual return, that individual;
(2) in the case of an income tax return filed jointly, either of the individuals with
respect to whom the return is filed;
(3) in the case of a return filed by a business entity, an officer of a corporation,
a shareholder owning more than one percent of the stock, or any shareholder of an S
corporation; a general partner in a partnership; the owner of a sole proprietorship; a
member or manager of a limited liability company; a participant in a joint venture; the
individual who signed the return on behalf of the business entity; or an employee who is
responsible for handling the tax matters of the business entity, such as the tax manager,
bookkeeper, or managing agent;
(4) in the case of an estate return:
(i) the personal representative or trustee of the estate; and
(ii) any beneficiary of the estate as shown on the federal estate tax return;
(5) in the case of a trust return:
(i) the trustee or trustees, jointly or separately; and
(ii) any beneficiary of the trust as shown in the trust instrument;
(6) if liability has been assessed to a transferee under section 270C.58, subdivision
1 , the transferee is the data subject with regard to the returns and return information
relating to the assessed liability;
(7) in the case of an Indian tribal government or an Indian tribal government-owned
entity,
(i) the chair of the tribal government, or
(ii) any person authorized by the tribal government; and
(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph
(b), the successor is the data subject and information may be disclosed as provided by
section 270C.57, subdivision 4; and
(9) in the case of a gift return, the donor.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 17. Minnesota Statutes 2013 Supplement, section 273.117, is amended to read:
273.117 CONSERVATION PROPERTY TAX VALUATION.
    The value of real property which is subject to a conservation restriction or easement
shall not be reduced may be adjusted by the assessor if:
    (a) the restriction or easement is for a conservation purpose as defined in section
84.64, subdivision 2 , and is recorded on the property; and
    (b) the property is being used in accordance with the terms of the conservation
restriction or easement.
This section does not apply to (1) conservation restrictions or easements covering
riparian buffers along lakes, rivers, and streams that are used for water quantity or quality
control; or (2) easements in a county that has adopted, by referendum, a program to protect
farmland and natural areas since 1999.
EFFECTIVE DATE.This section is effective beginning with assessment year
2014, for taxes payable in 2015.

    Sec. 18. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, is
amended to read:
    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:
    (1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through January 3, 2013, but without regard to the provisions of section
2011, paragraph (f), of the Internal Revenue Code.
    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, plus
(i) the amount of deduction for state death taxes allowed under section 2058 of the
Internal Revenue Code;
(ii) the amount of taxable gifts, as defined in section 292.16, and made by the
decedent within three years of the decedent's date of death; less
(iii) (ii)(A) the value of qualified small business property under section 291.03,
subdivision 9 , and the value of qualified farm property under section 291.03, subdivision
10 , or (B) $4,000,000, whichever is less.
    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.
    (6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.
    (7) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.
    (8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.
    (9) "Situs of property" means, with respect to:
    (i) real property, the state or country in which it is located;
    (ii) tangible personal property, the state or country in which it was normally kept
or located at the time of the decedent's death or for a gift of tangible personal property
within three years of death, the state or country in which it was normally kept or located
when the gift was executed; and
    (iii) intangible personal property, the state or country in which the decedent was
domiciled at death or for a gift of intangible personal property within three years of death,
the state or country in which the decedent was domiciled when the gift was executed.
    For a nonresident decedent with an ownership interest in a pass-through entity
with assets that include real or tangible personal property, situs of the real or tangible
personal property is determined as if the pass-through entity does not exist and the real
or tangible personal property is personally owned by the decedent. If the pass-through
entity is owned by a person or persons in addition to the decedent, ownership of the
property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(10) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
EFFECTIVE DATE.This section is effective retroactively for gifts made after
June 30, 2013.

    Sec. 19. Minnesota Statutes 2013 Supplement, section 291.03, subdivision 1, is
amended to read:
    Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011 of
the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
gross estate. The tax is reduced by:
    (1) the gift tax paid by the decedent under section 292.17 on gifts included in the
Minnesota adjusted taxable estate and not subtracted as qualified farm or small business
property; and
    (2) any credit allowed under subdivision 1c.
    (b) The tax determined under this subdivision must not be greater than the sum of
the following amounts multiplied by a fraction, the numerator of which is the Minnesota
gross estate and the denominator of which is the federal gross estate:
    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
multiplied by the sum of:
    (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
    (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
Code; less
(iii) the lesser of (A) the sum of the value of qualified small business property
under subdivision 9, and the value of qualified farm property under subdivision 10, or
(B) $4,000,000; less
    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
Code; and less
    (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 2000.
EFFECTIVE DATE.This section is effective retroactively for gifts made after
June 30, 2013.

    Sec. 20. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, is
amended to read:
    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision. In applying the provisions of this
chapter, the terms "tangible personal property" and "retail sale" include the taxable
services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
of these taxable services, unless specifically provided otherwise. Services performed by
an employee for an employer are not taxable. Services performed by a partnership or
association for another partnership or association are not taxable 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 the preceding sentence, "affiliated group of corporations" means
those entities that would be classified as members of an affiliated group as defined under
United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
    (b) Sale and purchase include:
    (1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and
    (2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.
    (c) Sale and purchase include 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.
    (d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:
    (1) prepared food sold by the retailer;
    (2) soft drinks;
    (3) candy;
    (4) dietary supplements; and
    (5) all food sold through vending machines.
    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.
    (f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.
    (g) A sale and a purchase includes the furnishing for a consideration of the following
services:
    (1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
    (2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property in
a specific facility, other than the renting or leasing of it for a continuous period of 30 days
or more under an enforceable written agreement that may not be terminated without prior
notice and including accommodations intermediary services provided in connection with
other services provided under this clause;
    (3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;
    (4) the granting of membership in a club, association, or other organization if:
    (i) 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
    (ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.
Granting of membership means both onetime 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;
    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:
    (i) public roads;
    (ii) cartways; and
    (iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and
    (6) services as provided in this clause:
    (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 services and
pest control and exterminating services;
    (iv) detective, security, 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 or any organization at the direction of a county 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, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; 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 of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.
    (h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.
    (i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, and pay television services. Telecommunication services include, but are
not limited to, the following services, as defined in section 297A.669: air-to-ground
radiotelephone service, mobile telecommunication service, postpaid calling service,
prepaid calling service, prepaid wireless calling service, and private communication
services. The services in this paragraph are taxed to the extent allowed under federal law.
    (j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.
    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
59B.02, subdivision 11.
    (l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.
(m) A sale and purchase includes the furnishing for consideration of the following
services:
(1) repairing and maintaining electronic and precision equipment, which service can
be deducted as a business expense under the Internal Revenue Code. This includes, but
is not limited to, repair or maintenance of electronic devices, computers and computer
peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other
office equipment such as photocopying machines, printers, and facsimile machines;
televisions, stereos, sound systems, video or digital recorders and players; two-way radios
and other communications equipment; radar and sonar equipment, scientific instruments,
microscopes, and medical equipment;
(2) repairing and maintaining commercial and industrial machinery and equipment.
For purposes of this subdivision, the following items are not commercial or industrial
machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv)
railroad stock; and (v) aircraft; and
(3) warehousing or storage services for tangible personal property, excluding:
(i) agricultural products;
(ii) refrigerated storage;
(iii) electronic data; and
(iv) self-storage services and storage of motor vehicles, recreational vehicles, and
boats, not eligible to be deducted as a business expense under the Internal Revenue Code.
EFFECTIVE DATE.This section is effective retroactively for sales and purchases
made after June 30, 2013. Any person that paid sales tax on purchases exempted under
this section may apply for a direct refund. If the purchaser qualifies to apply for a refund
under Minnesota Statutes, section 289A.50, subdivision 2a, they must file under that
provision; all others may apply for a direct refund under section 24.

    Sec. 21. Minnesota Statutes 2012, section 297A.68, is amended by adding a
subdivision to read:
    Subd. 35a. Telecommunications and pay television services machinery and
equipment. (a) Telecommunications or pay television services machinery and equipment
purchased or leased for use directly by a telecommunications or pay television service
provider primarily in the provision of telecommunications or pay television services
that are ultimately to be sold at retail are exempt, regardless of whether purchased by
the owner, a contractor, or a subcontractor.
(b) For purposes of this subdivision, "telecommunications or pay television services
machinery and equipment" includes, but is not limited to:
(1) machinery, equipment, and fixtures utilized in receiving, initiating,
amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunications or pay television services, such as computers, transformers, amplifiers,
routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
(2) machinery, equipment, and fixtures used in the transportation of
telecommunications or pay television services, such as radio transmitters and receivers,
satellite equipment, microwave equipment, and other transporting media, but not wire,
cable, fiber, poles, or conduit;
(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or
enable the machinery in clauses (1) and (2) to accomplish its intended function, such as
auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
equipment necessary to the operation of the telecommunications or pay television services
equipment, and software necessary to the operation of the telecommunications or pay
television services equipment; and
(4) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.
EFFECTIVE DATE.This section is effective retroactively for sales and purchases
made after June 30, 2013. Any person that paid sales tax on purchases exempted under
this section may apply for a direct refund. If the purchaser qualifies to apply for a refund
under Minnesota Statutes, section 289A.50, subdivision 2a, they must file under that
provision; all others may apply for a direct refund under section 24.

    Sec. 22. Minnesota Statutes 2013 Supplement, section 297A.993, subdivision 1,
is amended to read:
    Subdivision 1. Authorization; rates. Notwithstanding section 297A.99,
subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, may by resolution of the county board, or each of the county boards,
following a public hearing impose (1) a transportation sales tax at a rate of up to one-half
of one percent on retail sales and uses taxable under this chapter, and (2) an excise tax
of $20 per motor vehicle, as defined in section 297B.01, subdivision 11, purchased or
acquired from any person engaged in the business of selling motor vehicles at retail,
occurring within the jurisdiction of the taxing authority. The taxes imposed under this
section are subject to approval by a majority of voters in each of the counties affected at a
general election who vote on the question to impose the taxes. Any taxes imposed under
this section by January 1, 2014, without voter approval shall expire as soon as revenues
raised are sufficient to pay the capital costs of the specified transportation or transit
project, including any associated bond costs.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. RECISION OF BOARD-APPROVED REFERENDUM LEVIES.
Any levies approved under the authority granted under Minnesota Statutes 2013
Supplement, section 126C.17, subdivision 9a, are hereby rescinded.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
and later.

    Sec. 24. SALES TAX; TEMPORARY REFUND MECHANISM.
Any purchaser that paid sales tax on items under the repealed paragraph (m)
of Minnesota Statutes, section 297A.61, subdivision 3, that may not file for a refund
under Minnesota Statutes, section 289A.50, subdivision 2a, may apply directly to the
commissioner of revenue for a refund under this section. This provision only applies to
sales made after June 30, 2013, and before July 1, 2014. The application must be made on
forms prescribed by the commissioner and the purchaser may make only one application
for the entire period. Interest on the refund shall be paid at the rate in Minnesota Statutes,
section 270C.405, from 90 days after the refund claim is filed with the commissioner
of revenue. The amount required to make the refunds is annually appropriated to the
commissioner of revenue.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 25. REPEALER.
(a) Minnesota Statutes 2013 Supplement, sections 126C.13, subdivisions 3a, 3b, and
3c; and 126C.17, subdivision 9a, are repealed.
(b) Minnesota Statutes 2013 Supplement, sections 292.16; 292.17; 292.18; 292.19;
292.20; and 292.21, are repealed.
EFFECTIVE DATE.Paragraph (a) is effective for revenue for fiscal year 2016 and
later. Paragraph (b) is effective retroactively for gifts made after June 30, 2013.