Bill Text: MN HF719 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Sales and use tax exemptions modified to include some sales at events between established religious orders and affiliated institutions of higher education.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2013-02-20 - Introduction and first reading, referred to Taxes [HF719 Detail]
Download: Minnesota-2013-HF719-Introduced.html
1.2relating to taxation; sales and use; modifying exemptions;amending Minnesota
1.3Statutes 2012, section 297A.70, subdivision 4, by adding a subdivision.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
1.6 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
1.7(b), to the following "nonprofit organizations" are exempt:
1.8(1) a corporation, society, association, foundation, or institution organized and
1.9operated exclusively for charitable, religious, or educational purposes if the item
1.10purchased is used in the performance of charitable, religious, or educational functions; and
1.11(2) any senior citizen group or association of groups that:
1.12(i) in general limits membership to persons who are either age 55 or older, or
1.13physically disabled;
1.14(ii) is organized and operated exclusively for pleasure, recreation, and other
1.15nonprofit purposes, not including housing, no part of the net earnings of which inures to
1.16the benefit of any private shareholders; and
1.17(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
1.18For purposes of this subdivision, charitable purpose includes the maintenance of a
1.19cemetery owned by a religious organization.
1.20(b) This exemption does not apply to the following sales:
1.21(1) building, construction, or reconstruction materials purchased by a contractor
1.22or a subcontractor as a part of a lump-sum contract or similar type of contract with a
1.23guaranteed maximum price covering both labor and materials for use in the construction,
1.24alteration, or repair of a building or facility;
2.1(2) construction materials purchased by tax-exempt entities or their contractors to
2.2be used in constructing buildings or facilities that will not be used principally by the
2.3tax-exempt entities; and
2.4(3) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
2.5(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.6297A.67, subdivision 2
, except wine purchased by an established religious organization
2.7for sacramental purposes or as allowed under subdivision 9a; and
2.8(4) leasing of a motor vehicle as defined in section297B.01, subdivision 11 , except
2.9as provided in paragraph (c).
2.10(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.11297B.01, subdivision 11
, only if the vehicle is:
2.12(1) a truck, as defined in section168.002 , a bus, as defined in section
168.002 , or a
2.13passenger automobile, as defined in section168.002 , if the automobile is designed and
2.14used for carrying more than nine persons including the driver; and
2.15(2) intended to be used primarily to transport tangible personal property or
2.16individuals, other than employees, to whom the organization provides service in
2.17performing its charitable, religious, or educational purpose.
2.18(d) A limited liability company also qualifies for exemption under this subdivision if
2.19(1) it consists of a sole member that would qualify for the exemption, and (2) the items
2.20purchased qualify for the exemption.
2.21EFFECTIVE DATE.This section is effective retroactively for sales and purchases
2.22made after June 30, 2012.
2.23 Sec. 2. Minnesota Statutes 2012, section 297A.70, is amended by adding a subdivision
2.24to read:
2.25 Subd. 9a. Established religious orders. Sales of lodging, prepared food, candy,
2.26soft drinks, and alcoholic beverages at noncatered events between an established religious
2.27order and an affiliated institution of higher education are exempt. For purposes of this
2.28subdivision, an institution of higher education is "affiliated" with an established religious
2.29order if members of the religious order are represented on the governing board of the
2.30institution of higher education and the two organization share campus space and common
2.31facilities.
2.32EFFECTIVE DATE.This section is effective retroactively for sales and purchases
2.33made after June 30, 2012.
1.3Statutes 2012, section 297A.70, subdivision 4, by adding a subdivision.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
1.6 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
1.7(b), to the following "nonprofit organizations" are exempt:
1.8(1) a corporation, society, association, foundation, or institution organized and
1.9operated exclusively for charitable, religious, or educational purposes if the item
1.10purchased is used in the performance of charitable, religious, or educational functions; and
1.11(2) any senior citizen group or association of groups that:
1.12(i) in general limits membership to persons who are either age 55 or older, or
1.13physically disabled;
1.14(ii) is organized and operated exclusively for pleasure, recreation, and other
1.15nonprofit purposes, not including housing, no part of the net earnings of which inures to
1.16the benefit of any private shareholders; and
1.17(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
1.18For purposes of this subdivision, charitable purpose includes the maintenance of a
1.19cemetery owned by a religious organization.
1.20(b) This exemption does not apply to the following sales:
1.21(1) building, construction, or reconstruction materials purchased by a contractor
1.22or a subcontractor as a part of a lump-sum contract or similar type of contract with a
1.23guaranteed maximum price covering both labor and materials for use in the construction,
1.24alteration, or repair of a building or facility;
2.1(2) construction materials purchased by tax-exempt entities or their contractors to
2.2be used in constructing buildings or facilities that will not be used principally by the
2.3tax-exempt entities; and
2.4(3) lodging as defined under section
2.5(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.7for sacramental purposes or as allowed under subdivision 9a; and
2.8(4) leasing of a motor vehicle as defined in section
2.9as provided in paragraph (c).
2.10(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.12(1) a truck, as defined in section
2.13passenger automobile, as defined in section
2.14used for carrying more than nine persons including the driver; and
2.15(2) intended to be used primarily to transport tangible personal property or
2.16individuals, other than employees, to whom the organization provides service in
2.17performing its charitable, religious, or educational purpose.
2.18(d) A limited liability company also qualifies for exemption under this subdivision if
2.19(1) it consists of a sole member that would qualify for the exemption, and (2) the items
2.20purchased qualify for the exemption.
2.21EFFECTIVE DATE.This section is effective retroactively for sales and purchases
2.22made after June 30, 2012.
2.23 Sec. 2. Minnesota Statutes 2012, section 297A.70, is amended by adding a subdivision
2.24to read:
2.25 Subd. 9a. Established religious orders. Sales of lodging, prepared food, candy,
2.26soft drinks, and alcoholic beverages at noncatered events between an established religious
2.27order and an affiliated institution of higher education are exempt. For purposes of this
2.28subdivision, an institution of higher education is "affiliated" with an established religious
2.29order if members of the religious order are represented on the governing board of the
2.30institution of higher education and the two organization share campus space and common
2.31facilities.
2.32EFFECTIVE DATE.This section is effective retroactively for sales and purchases
2.33made after June 30, 2012.
