Bill Text: MN HF3154 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Municipal airport purchase exemption allowed.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2014-03-17 - Introduction and first reading, referred to Taxes [HF3154 Detail]
Download: Minnesota-2013-HF3154-Introduced.html
1.2relating to taxation; sales and use; motor vehicles; allowing an exemption for
1.3purchases by a municipal airport;amending Minnesota Statutes 2012, section
1.4297B.03; Minnesota Statutes 2013 Supplement, 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 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) municipal airports as defined under section 360.046, subdivision 1.
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), clause
2.16(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.17297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
2.18beverages purchased directly by the United States or its agencies or instrumentalities; or
2.19(5) goods or services purchased by a local government as inputs to goods and
2.20services that are generally provided by a private business and the purchases would be
2.21taxable if made by a private business engaged in the same activity.
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.
2.27(e) As used in this subdivision, "goods or services generally provided by a private
2.28business" include, but are not limited to, goods or services provided by liquor stores, gas
2.29and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.30and laundromats. "Goods or services generally provided by a private business" do not
2.31include housing services, sewer and water services, wastewater treatment, ambulance and
2.32other public safety services, correctional services, chore or homemaking services provided
2.33to elderly or disabled individuals, or road and street maintenance or lighting.
2.34EFFECTIVE DATE.This section is effective for sales and purchases made after
2.35June 30, 2014.
3.1 Sec. 2. Minnesota Statutes 2012, section 297B.03, is amended to read:
3.2297B.03 EXEMPTIONS.
3.3 There is specifically exempted from the provisions of this chapter and from
3.4computation of the amount of tax imposed by it the following:
3.5 (1) purchase or use, including use under a lease purchase agreement or installment
3.6sales contract made pursuant to section465.71 , of any motor vehicle by the United States
3.7and its agencies and instrumentalities and by any person described in and subject to the
3.8conditions provided in section297A.67, subdivision 11 ;
3.9 (2) purchase or use of any motor vehicle by any person who was a resident of
3.10another state or country at the time of the purchase and who subsequently becomes a
3.11resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
3.12such person began residing in the state of Minnesota and the motor vehicle was registered
3.13in the person's name in the other state or country;
3.14 (3) purchase or use of any motor vehicle by any person making a valid election to be
3.15taxed under the provisions of section297A.90 ;
3.16 (4) purchase or use of any motor vehicle previously registered in the state of
3.17Minnesota when such transfer constitutes a transfer within the meaning of section 118,
3.18331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
3.19Revenue Code;
3.20 (5) purchase or use of any vehicle owned by a resident of another state and leased
3.21to a Minnesota-based private or for-hire carrier for regular use in the transportation of
3.22persons or property in interstate commerce provided the vehicle is titled in the state of
3.23the owner or secured party, and that state does not impose a sales tax or sales tax on
3.24motor vehicles used in interstate commerce;
3.25 (6) purchase or use of a motor vehicle by a private nonprofit or public educational
3.26institution for use as an instructional aid in automotive training programs operated by the
3.27institution. "Automotive training programs" includes motor vehicle body and mechanical
3.28repair courses but does not include driver education programs;
3.29 (7) purchase of a motor vehicle by an ambulance service licensed under section
3.30144E.10
when that vehicle is equipped and specifically intended for emergency response
3.31or for providing ambulance service;
3.32 (8) purchase of a motor vehicle by or for a public library, as defined in section
3.33134.001, subdivision 2
, as a bookmobile or library delivery vehicle;
3.34 (9) purchase of a ready-mixed concrete truck;
4.1 (10) purchase or use of a motor vehicle by a town for use exclusively for road
4.2maintenance, including snowplows and dump trucks, but not including automobiles,
4.3vans, or pickup trucks;
4.4 (11) purchase or use of a motor vehicle by a corporation, society, association,
4.5foundation, or institution organized and operated exclusively for charitable, religious, or
4.6educational purposes, except a public school, university, or library, but only if the vehicle is:
4.7 (i) a truck, as defined in section168.002 , a bus, as defined in section
168.002 , or a
4.8passenger automobile, as defined in section168.002 , if the automobile is designed and
4.9used for carrying more than nine persons including the driver; and
4.10 (ii) intended to be used primarily to transport tangible personal property or
4.11individuals, other than employees, to whom the organization provides service in
4.12performing its charitable, religious, or educational purpose;
4.13 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
4.14transit service is exempt if the transit provider is either (i) receiving financial assistance or
4.15reimbursement under section174.24 or
473.384 , or (ii) operating under section
174.29 ,
4.16473.388
, or
473.405 ;
4.17 (13) purchase or use of a motor vehicle by a qualified business, as defined in section
4.18469.310
, located in a job opportunity building zone, if the motor vehicle is principally
4.19garaged in the job opportunity building zone and is primarily used as part of or in direct
4.20support of the person's operations carried on in the job opportunity building zone. The
4.21exemption under this clause applies to sales, if the purchase was made and delivery
4.22received during the duration of the job opportunity building zone. The exemption under
4.23this clause also applies to any local sales and use tax;
4.24 (14) purchase of a leased vehicle by the lessee who was a participant in a
4.25lease-to-own program from a charitable organization that is:
4.26 (i) described in section 501(c)(3) of the Internal Revenue Code; and
4.27 (ii) licensed as a motor vehicle lessor under section168.27, subdivision 4 ; and
4.28(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
4.29provision of medical or dental services by a federally qualified health center, as defined
4.30under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus
4.31Budget Reconciliation Act of 1990.; and
4.32(16) purchase or use of a motor vehicle by a municipal airport as defined under section
4.33360.046, subdivision 1, for use exclusively for airport service, maintenance, and operations.
4.34EFFECTIVE DATE.This section is effective for sales and purchases made after
4.35June 30, 2014.
1.3purchases by a municipal airport;amending Minnesota Statutes 2012, section
1.4297B.03; Minnesota Statutes 2013 Supplement, 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;
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(7) municipal airports as defined under section 360.046, subdivision 1.
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
2.16(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.18beverages purchased directly by the United States or its agencies or instrumentalities; or
2.19(5) goods or services purchased by a local government as inputs to goods and
2.20services that are generally provided by a private business and the purchases would be
2.21taxable if made by a private business engaged in the same activity.
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.
2.27(e) As used in this subdivision, "goods or services generally provided by a private
2.28business" include, but are not limited to, goods or services provided by liquor stores, gas
2.29and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.30and laundromats. "Goods or services generally provided by a private business" do not
2.31include housing services, sewer and water services, wastewater treatment, ambulance and
2.32other public safety services, correctional services, chore or homemaking services provided
2.33to elderly or disabled individuals, or road and street maintenance or lighting.
2.34EFFECTIVE DATE.This section is effective for sales and purchases made after
2.35June 30, 2014.
3.1 Sec. 2. Minnesota Statutes 2012, section 297B.03, is amended to read:
3.2297B.03 EXEMPTIONS.
3.3 There is specifically exempted from the provisions of this chapter and from
3.4computation of the amount of tax imposed by it the following:
3.5 (1) purchase or use, including use under a lease purchase agreement or installment
3.6sales contract made pursuant to section
3.7and its agencies and instrumentalities and by any person described in and subject to the
3.8conditions provided in section
3.9 (2) purchase or use of any motor vehicle by any person who was a resident of
3.10another state or country at the time of the purchase and who subsequently becomes a
3.11resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
3.12such person began residing in the state of Minnesota and the motor vehicle was registered
3.13in the person's name in the other state or country;
3.14 (3) purchase or use of any motor vehicle by any person making a valid election to be
3.15taxed under the provisions of section
3.16 (4) purchase or use of any motor vehicle previously registered in the state of
3.17Minnesota when such transfer constitutes a transfer within the meaning of section 118,
3.18331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
3.19Revenue Code;
3.20 (5) purchase or use of any vehicle owned by a resident of another state and leased
3.21to a Minnesota-based private or for-hire carrier for regular use in the transportation of
3.22persons or property in interstate commerce provided the vehicle is titled in the state of
3.23the owner or secured party, and that state does not impose a sales tax or sales tax on
3.24motor vehicles used in interstate commerce;
3.25 (6) purchase or use of a motor vehicle by a private nonprofit or public educational
3.26institution for use as an instructional aid in automotive training programs operated by the
3.27institution. "Automotive training programs" includes motor vehicle body and mechanical
3.28repair courses but does not include driver education programs;
3.29 (7) purchase of a motor vehicle by an ambulance service licensed under section
3.31or for providing ambulance service;
3.32 (8) purchase of a motor vehicle by or for a public library, as defined in section
3.34 (9) purchase of a ready-mixed concrete truck;
4.1 (10) purchase or use of a motor vehicle by a town for use exclusively for road
4.2maintenance, including snowplows and dump trucks, but not including automobiles,
4.3vans, or pickup trucks;
4.4 (11) purchase or use of a motor vehicle by a corporation, society, association,
4.5foundation, or institution organized and operated exclusively for charitable, religious, or
4.6educational purposes, except a public school, university, or library, but only if the vehicle is:
4.7 (i) a truck, as defined in section
4.8passenger automobile, as defined in section
4.9used for carrying more than nine persons including the driver; and
4.10 (ii) intended to be used primarily to transport tangible personal property or
4.11individuals, other than employees, to whom the organization provides service in
4.12performing its charitable, religious, or educational purpose;
4.13 (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
4.14transit service is exempt if the transit provider is either (i) receiving financial assistance or
4.15reimbursement under section
4.17 (13) purchase or use of a motor vehicle by a qualified business, as defined in section
4.19garaged in the job opportunity building zone and is primarily used as part of or in direct
4.20support of the person's operations carried on in the job opportunity building zone. The
4.21exemption under this clause applies to sales, if the purchase was made and delivery
4.22received during the duration of the job opportunity building zone. The exemption under
4.23this clause also applies to any local sales and use tax;
4.24 (14) purchase of a leased vehicle by the lessee who was a participant in a
4.25lease-to-own program from a charitable organization that is:
4.26 (i) described in section 501(c)(3) of the Internal Revenue Code; and
4.27 (ii) licensed as a motor vehicle lessor under section
4.28(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
4.29provision of medical or dental services by a federally qualified health center, as defined
4.30under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus
4.31Budget Reconciliation Act of 1990
4.32(16) purchase or use of a motor vehicle by a municipal airport as defined under section
4.33360.046, subdivision 1, for use exclusively for airport service, maintenance, and operations.
4.34EFFECTIVE DATE.This section is effective for sales and purchases made after
4.35June 30, 2014.
