Bill Text: MN HF2532 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Sales tax exemption for units of local government modified, and money appropriated.
Spectrum: Slight Partisan Bill (Republican 8-4)
Status: (Introduced - Dead) 2014-03-27 - Author added McDonald [HF2532 Detail]
Download: Minnesota-2013-HF2532-Introduced.html
1.2relating to taxation; sales and use; modifying the sales tax exemption for units
1.3of local government; appropriating money;amending Minnesota Statutes 2013
1.4Supplement, section 297A.70, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2,
1.7is amended to read:
1.8 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.9to the following governments and political subdivisions, or to the listed agencies or
1.10instrumentalities of governments and political subdivisions, are exempt:
1.11(1) the United States and its agencies and instrumentalities;
1.12(2) school districts, local governments, the University of Minnesota, state universities,
1.13community colleges, technical colleges, state academies, the Perpich Minnesota Center for
1.14Arts Education, and an instrumentality of a political subdivision that is accredited as an
1.15optional/special function school by the North Central Association of Colleges and Schools;
1.16(3) hospitals and nursing homes owned and operated by political subdivisions of
1.17the state of tangible personal property and taxable services used at or by hospitals and
1.18nursing homes;
1.19(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
1.20operations provided for in section473.4051 ;
1.21(5) other states or political subdivisions of other states, if the sale would be exempt
1.22from taxation if it occurred in that state; and
2.1(6) public libraries, public library systems, multicounty, multitype library systems
2.2as defined in section134.001 , county law libraries under chapter 134A, state agency
2.3libraries, the state library under section480.09 , and the Legislative Reference Library.
2.4(b) This exemption does not apply to the sales of the following products and services:
2.5(1) building, construction, or reconstruction materials purchased by a contractor
2.6or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.7guaranteed maximum price covering both labor and materials for use in the construction,
2.8alteration, or repair of a building or facility;
2.9(2) construction materials purchased by tax exempt entities or their contractors to
2.10be used in constructing buildings or facilities which will not be used principally by the
2.11tax exempt entities;
2.12(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
2.13except for leases entered into by the United States or its agencies or instrumentalities;
2.14(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
2.15(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.16297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
2.17beverages purchased directly by the United States or its agencies or instrumentalities; or
2.18(5) goods or services purchased by a local government as inputs togoods and services
2.19that are generally provided by a private business and the purchases would be taxable if
2.20made by a private business engaged in the same activity a liquor store, gas and electric
2.21utility, golf course, marina, health and fitness center, campground, cafe, or laundromat.
2.22(c) As used in this subdivision, "school districts" means public school entities and
2.23districts of every kind and nature organized under the laws of the state of Minnesota, and
2.24any instrumentality of a school district, as defined in section471.59 .
2.25(d) As used in this subdivision, "local governments" means cities, counties, and
2.26townships and their instrumentalities, including any special district as defined under
2.27section 6.465, or any special district organized under a joint powers agreement under
2.28section 471.59.
2.29(e) As used in this subdivision, "goods or services generally provided by a private
2.30business" include, but are not limited to, goods or services provided by liquor stores, gas
2.31and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.32and laundromats. "Goods or services generally provided by a private business" do not
2.33include housing services, sewer and water services, wastewater treatment, ambulance and
2.34other public safety services, correctional services, chore or homemaking services provided
2.35to elderly or disabled individuals, or road and street maintenance or lighting.
3.1EFFECTIVE DATE.This section is effective retroactively from January 1, 2014,
3.2and applies to sales and purchases made on or after that date.
3.3 Sec. 2. SALES TAX; TEMPORARY REFUND MECHANISM.
3.4Notwithstanding the requirements in Minnesota Statutes, section 289A.50,
3.5subdivision 2a, any local government that paid sales tax on items exempted under section
3.61 may apply directly to the commissioner of revenue for a refund under this section. This
3.7provision applies only to sales made after December 31, 2013, and before July 1, 2014.
3.8The application must be made on forms prescribed by the commissioner and filed before
3.9January 1, 2015. The local government may make only one application for the entire
3.10period. Interest on the refund must be paid at the rate in Minnesota Statutes, section
3.11270C.405, from 90 days after the refund claim is filed with the commissioner of revenue.
3.12The amount required to make the refunds is appropriated to the commissioner of revenue.
3.13EFFECTIVE DATE.This section is effective the day following final enactment.
1.3of local government; appropriating money;amending Minnesota Statutes 2013
1.4Supplement, section 297A.70, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2,
1.7is amended to read:
1.8 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.9to the following governments and political subdivisions, or to the listed agencies or
1.10instrumentalities of governments and political subdivisions, are exempt:
1.11(1) the United States and its agencies and instrumentalities;
1.12(2) school districts, local governments, the University of Minnesota, state universities,
1.13community colleges, technical colleges, state academies, the Perpich Minnesota Center for
1.14Arts Education, and an instrumentality of a political subdivision that is accredited as an
1.15optional/special function school by the North Central Association of Colleges and Schools;
1.16(3) hospitals and nursing homes owned and operated by political subdivisions of
1.17the state of tangible personal property and taxable services used at or by hospitals and
1.18nursing homes;
1.19(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
1.20operations provided for in section
1.21(5) other states or political subdivisions of other states, if the sale would be exempt
1.22from taxation if it occurred in that state; and
2.1(6) public libraries, public library systems, multicounty, multitype library systems
2.2as defined in section
2.3libraries, the state library under section
2.4(b) This exemption does not apply to the sales of the following products and services:
2.5(1) building, construction, or reconstruction materials purchased by a contractor
2.6or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.7guaranteed maximum price covering both labor and materials for use in the construction,
2.8alteration, or repair of a building or facility;
2.9(2) construction materials purchased by tax exempt entities or their contractors to
2.10be used in constructing buildings or facilities which will not be used principally by the
2.11tax exempt entities;
2.12(3) the leasing of a motor vehicle as defined in section
2.13except for leases entered into by the United States or its agencies or instrumentalities;
2.14(4) lodging as defined under section
2.15(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.17beverages purchased directly by the United States or its agencies or instrumentalities; or
2.18(5) goods or services purchased by a local government as inputs to
2.19
2.20
2.21utility, golf course, marina, health and fitness center, campground, cafe, or laundromat.
2.22(c) As used in this subdivision, "school districts" means public school entities and
2.23districts of every kind and nature organized under the laws of the state of Minnesota, and
2.24any instrumentality of a school district, as defined in section
2.25(d) As used in this subdivision, "local governments" means cities, counties, and
2.26townships and their instrumentalities, including any special district as defined under
2.27section 6.465, or any special district organized under a joint powers agreement under
2.28section 471.59.
2.29
2.30
2.31
2.32
2.33
2.34
2.35
3.1EFFECTIVE DATE.This section is effective retroactively from January 1, 2014,
3.2and applies to sales and purchases made on or after that date.
3.3 Sec. 2. SALES TAX; TEMPORARY REFUND MECHANISM.
3.4Notwithstanding the requirements in Minnesota Statutes, section 289A.50,
3.5subdivision 2a, any local government that paid sales tax on items exempted under section
3.61 may apply directly to the commissioner of revenue for a refund under this section. This
3.7provision applies only to sales made after December 31, 2013, and before July 1, 2014.
3.8The application must be made on forms prescribed by the commissioner and filed before
3.9January 1, 2015. The local government may make only one application for the entire
3.10period. Interest on the refund must be paid at the rate in Minnesota Statutes, section
3.11270C.405, from 90 days after the refund claim is filed with the commissioner of revenue.
3.12The amount required to make the refunds is appropriated to the commissioner of revenue.
3.13EFFECTIVE DATE.This section is effective the day following final enactment.
