Bill Text: MN HF2689 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Sales tax eliminated on purchases by political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-06 - Referred by Chair to Property and Local Tax Division [HF2689 Detail]
Download: Minnesota-2011-HF2689-Introduced.html
1.2relating to taxation; eliminating sales tax on purchases by political subdivisions;
1.3amending Minnesota Statutes 2011 Supplement, section 297A.70, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 297A.70, subdivision 2,
1.6is amended to read:
1.7 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.8to the following governments and political subdivisions, or to the listed agencies or
1.9instrumentalities of governments and political subdivisions, are exempt:
1.10(1) the United States and its agencies and instrumentalities;
1.11(2) school districts, local governments, the University of Minnesota, state
1.12universities, community colleges, technical colleges, state academies, the Perpich
1.13Minnesota Center for Arts Education, and an instrumentality of a political subdivision
1.14that is accredited as an optional/special function school by the North Central Association
1.15of 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 as
2.2defined in section134.001 , county law libraries under chapter 134A, state agency libraries,
2.3the state library under section480.09 , and the Legislative Reference Library; and.
2.4(7) towns.
2.5(b) This exemption does not apply to the sales of the following products and services:
2.6(1) building, construction, or reconstruction materials purchased by a contractor
2.7or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.8guaranteed maximum price covering both labor and materials for use in the construction,
2.9alteration, or repair of a building or facility;
2.10(2) construction materials purchased by tax exempt entities or their contractors to
2.11be used in constructing buildings or facilities which will not be used principally by the
2.12tax exempt entities;
2.13(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
2.14except for leases entered into by the United States or its agencies or instrumentalities;
2.15(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g),
2.16clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
2.17section297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks,
2.18and alcoholic beverages purchased directly by the United States or its agencies or
2.19instrumentalities; or
2.20(5) goods or services purchased by atown local government as inputs to goods and
2.21services that are generally provided by a private business and the purchases would be
2.22taxable if made by a private business engaged in the same activity.
2.23(c) As used in this subdivision, "school districts" means public school entities and
2.24districts of every kind and nature organized under the laws of the state of Minnesota, and
2.25any instrumentality of a school district, as defined in section471.59 .
2.26(d) As used in this subdivision, "local governments" means cities, counties, and
2.27townships.
2.28(d) (e) As used in this subdivision, "goods or services generally provided by a private
2.29business" include, but are not limited to, goods or services provided by liquor stores, gas
2.30and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.31and laundromats. "Goods or services generally provided by a private business" do not
2.32include housing services, sewer and water services, wastewater treatment, ambulance and
2.33other public safety services, correctional services, chore or homemaking services provided
2.34to elderly or disabled individuals, or road and street maintenance or lighting.
2.35EFFECTIVE DATE.This section is effective for sales and purchases made after
2.36June 30, 2012.
1.3amending Minnesota Statutes 2011 Supplement, section 297A.70, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2011 Supplement, section 297A.70, subdivision 2,
1.6is amended to read:
1.7 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.8to the following governments and political subdivisions, or to the listed agencies or
1.9instrumentalities of governments and political subdivisions, are exempt:
1.10(1) the United States and its agencies and instrumentalities;
1.11(2) school districts, local governments, the University of Minnesota, state
1.12universities, community colleges, technical colleges, state academies, the Perpich
1.13Minnesota Center for Arts Education, and an instrumentality of a political subdivision
1.14that is accredited as an optional/special function school by the North Central Association
1.15of 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 as
2.2defined in section
2.3the state library under section
2.4
2.5(b) This exemption does not apply to the sales of the following products and services:
2.6(1) building, construction, or reconstruction materials purchased by a contractor
2.7or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.8guaranteed maximum price covering both labor and materials for use in the construction,
2.9alteration, or repair of a building or facility;
2.10(2) construction materials purchased by tax exempt entities or their contractors to
2.11be used in constructing buildings or facilities which will not be used principally by the
2.12tax exempt entities;
2.13(3) the leasing of a motor vehicle as defined in section
2.14except for leases entered into by the United States or its agencies or instrumentalities;
2.15(4) lodging as defined under section
2.16clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
2.17section
2.18and alcoholic beverages purchased directly by the United States or its agencies or
2.19instrumentalities; or
2.20(5) goods or services purchased by a
2.21services that are generally provided by a private business and the purchases would be
2.22taxable if made by a private business engaged in the same activity.
2.23(c) As used in this subdivision, "school districts" means public school entities and
2.24districts of every kind and nature organized under the laws of the state of Minnesota, and
2.25any instrumentality of a school district, as defined in section
2.26(d) As used in this subdivision, "local governments" means cities, counties, and
2.27townships.
2.28
2.29business" include, but are not limited to, goods or services provided by liquor stores, gas
2.30and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.31and laundromats. "Goods or services generally provided by a private business" do not
2.32include housing services, sewer and water services, wastewater treatment, ambulance and
2.33other public safety services, correctional services, chore or homemaking services provided
2.34to elderly or disabled individuals, or road and street maintenance or lighting.
2.35EFFECTIVE DATE.This section is effective for sales and purchases made after
2.36June 30, 2012.
