Bill Text: MN SF1007 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Ring tones sales tax exemption
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-23 - Referred to Taxes [SF1007 Detail]
Download: Minnesota-2011-SF1007-Introduced.html
1.2relating to taxation; repeal of sales and use tax on ring tones; amending
1.3Minnesota Statutes 2010, section 297A.61, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
1.8to, each of the transactions listed in this subdivision.
1.9 (b) Sale and purchase include:
1.10 (1) any transfer of title or possession, or both, of tangible personal property, whether
1.11absolutely or conditionally, for a consideration in money or by exchange or barter; and
1.12 (2) the leasing of or the granting of a license to use or consume, for a consideration
1.13in money or by exchange or barter, tangible personal property, other than a manufactured
1.14home used for residential purposes for a continuous period of 30 days or more.
1.15 (c) Sale and purchase include the production, fabrication, printing, or processing of
1.16tangible personal property for a consideration for consumers who furnish either directly or
1.17indirectly the materials used in the production, fabrication, printing, or processing.
1.18 (d) Sale and purchase include the preparing for a consideration of food.
1.19Notwithstanding section297A.67, subdivision 2 , taxable food includes, but is not limited
1.20to, the following:
1.21 (1) prepared food sold by the retailer;
1.22 (2) soft drinks;
1.23 (3) candy;
1.24 (4) dietary supplements; and
2.1 (5) all food sold through vending machines.
2.2 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
2.3gas, water, or steam for use or consumption within this state.
2.4 (f) A sale and a purchase includes the transfer for a consideration of prewritten
2.5computer software whether delivered electronically, by load and leave, or otherwise.
2.6 (g) A sale and a purchase includes the furnishing for a consideration of the following
2.7services:
2.8 (1) the privilege of admission to places of amusement, recreational areas, or athletic
2.9events, and the making available of amusement devices, tanning facilities, reducing
2.10salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
2.11 (2) lodging and related services by a hotel, rooming house, resort, campground,
2.12motel, or trailer camp, including furnishing the guest of the facility with access to
2.13telecommunication services, and the granting of any similar license to use real property
2.14in a specific facility, other than the renting or leasing of it for a continuous period of
2.1530 days or more under an enforceable written agreement that may not be terminated
2.16without prior notice;
2.17 (3) nonresidential parking services, whether on a contractual, hourly, or other
2.18periodic basis, except for parking at a meter;
2.19 (4) the granting of membership in a club, association, or other organization if:
2.20 (i) the club, association, or other organization makes available for the use of its
2.21members sports and athletic facilities, without regard to whether a separate charge is
2.22assessed for use of the facilities; and
2.23 (ii) use of the sports and athletic facility is not made available to the general public
2.24on the same basis as it is made available to members.
2.25Granting of membership means both onetime initiation fees and periodic membership
2.26dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
2.27squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
2.28swimming pools; and other similar athletic or sports facilities;
2.29 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
2.30material used in road construction, and delivery of concrete block by a third party if
2.31the delivery would be subject to the sales tax if provided by the seller of the concrete
2.32block; and
2.33 (6) services as provided in this clause:
2.34 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
2.35and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
3.1drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
3.2include services provided by coin operated facilities operated by the customer;
3.3 (ii) motor vehicle washing, waxing, and cleaning services, including services
3.4provided by coin operated facilities operated by the customer, and rustproofing,
3.5undercoating, and towing of motor vehicles;
3.6 (iii) building and residential cleaning, maintenance, and disinfecting services and
3.7pest control and exterminating services;
3.8 (iv) detective, security, burglar, fire alarm, and armored car services; but not
3.9including services performed within the jurisdiction they serve by off-duty licensed peace
3.10officers as defined in section626.84, subdivision 1 , or services provided by a nonprofit
3.11organization for monitoring and electronic surveillance of persons placed on in-home
3.12detention pursuant to court order or under the direction of the Minnesota Department
3.13of Corrections;
3.14 (v) pet grooming services;
3.15 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
3.16and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
3.17plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
3.18clearing contract as defined in section297A.68, subdivision 40 ; and tree trimming for
3.19public utility lines. Services performed under a construction contract for the installation of
3.20shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
3.21 (vii) massages, except when provided by a licensed health care facility or
3.22professional or upon written referral from a licensed health care facility or professional for
3.23treatment of illness, injury, or disease; and
3.24 (viii) the furnishing of lodging, board, and care services for animals in kennels and
3.25other similar arrangements, but excluding veterinary and horse boarding services.
3.26 In applying the provisions of this chapter, the terms "tangible personal property"
3.27and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
3.28and the provision of these taxable services, unless specifically provided otherwise.
3.29Services performed by an employee for an employer are not taxable. Services performed
3.30by a partnership or association for another partnership or association are not taxable if
3.31one of the entities owns or controls more than 80 percent of the voting power of the
3.32equity interest in the other entity. Services performed between members of an affiliated
3.33group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
3.34group of corporations" means those entities that would be classified as members of an
3.35affiliated group as defined under United States Code, title 26, section 1504, disregarding
3.36the exclusions in section 1504(b).
4.1 For purposes of clause (5), "road construction" means construction of (1) public
4.2roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
4.3metropolitan area up to the point of the emergency response location sign.
4.4 (h) A sale and a purchase includes the furnishing for a consideration of tangible
4.5personal property or taxable services by the United States or any of its agencies or
4.6instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
4.7subdivisions.
4.8 (i) A sale and a purchase includes the furnishing for a consideration of
4.9telecommunications services, ancillary services associated with telecommunication
4.10services, cable television services, and direct satellite services, and ring tones.
4.11Telecommunication services include, but are not limited to, the following services,
4.12as defined in section297A.669 : air-to-ground radiotelephone service, mobile
4.13telecommunication service, postpaid calling service, prepaid calling service, prepaid
4.14wireless calling service, and private communication services. The services in this
4.15paragraph are taxed to the extent allowed under federal law.
4.16 (j) A sale and a purchase includes the furnishing for a consideration of installation if
4.17the installation charges would be subject to the sales tax if the installation were provided
4.18by the seller of the item being installed.
4.19 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
4.20to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
4.21the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
4.2259B.02, subdivision
11.
4.23EFFECTIVE DATE.This section is effective for sales and purchases made after
4.24June 30, 2011.
1.3Minnesota Statutes 2010, section 297A.61, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
1.8to, each of the transactions listed in this subdivision.
1.9 (b) Sale and purchase include:
1.10 (1) any transfer of title or possession, or both, of tangible personal property, whether
1.11absolutely or conditionally, for a consideration in money or by exchange or barter; and
1.12 (2) the leasing of or the granting of a license to use or consume, for a consideration
1.13in money or by exchange or barter, tangible personal property, other than a manufactured
1.14home used for residential purposes for a continuous period of 30 days or more.
1.15 (c) Sale and purchase include the production, fabrication, printing, or processing of
1.16tangible personal property for a consideration for consumers who furnish either directly or
1.17indirectly the materials used in the production, fabrication, printing, or processing.
1.18 (d) Sale and purchase include the preparing for a consideration of food.
1.19Notwithstanding section
1.20to, the following:
1.21 (1) prepared food sold by the retailer;
1.22 (2) soft drinks;
1.23 (3) candy;
1.24 (4) dietary supplements; and
2.1 (5) all food sold through vending machines.
2.2 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
2.3gas, water, or steam for use or consumption within this state.
2.4 (f) A sale and a purchase includes the transfer for a consideration of prewritten
2.5computer software whether delivered electronically, by load and leave, or otherwise.
2.6 (g) A sale and a purchase includes the furnishing for a consideration of the following
2.7services:
2.8 (1) the privilege of admission to places of amusement, recreational areas, or athletic
2.9events, and the making available of amusement devices, tanning facilities, reducing
2.10salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
2.11 (2) lodging and related services by a hotel, rooming house, resort, campground,
2.12motel, or trailer camp, including furnishing the guest of the facility with access to
2.13telecommunication services, and the granting of any similar license to use real property
2.14in a specific facility, other than the renting or leasing of it for a continuous period of
2.1530 days or more under an enforceable written agreement that may not be terminated
2.16without prior notice;
2.17 (3) nonresidential parking services, whether on a contractual, hourly, or other
2.18periodic basis, except for parking at a meter;
2.19 (4) the granting of membership in a club, association, or other organization if:
2.20 (i) the club, association, or other organization makes available for the use of its
2.21members sports and athletic facilities, without regard to whether a separate charge is
2.22assessed for use of the facilities; and
2.23 (ii) use of the sports and athletic facility is not made available to the general public
2.24on the same basis as it is made available to members.
2.25Granting of membership means both onetime initiation fees and periodic membership
2.26dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
2.27squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
2.28swimming pools; and other similar athletic or sports facilities;
2.29 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
2.30material used in road construction, and delivery of concrete block by a third party if
2.31the delivery would be subject to the sales tax if provided by the seller of the concrete
2.32block; and
2.33 (6) services as provided in this clause:
2.34 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
2.35and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
3.1drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
3.2include services provided by coin operated facilities operated by the customer;
3.3 (ii) motor vehicle washing, waxing, and cleaning services, including services
3.4provided by coin operated facilities operated by the customer, and rustproofing,
3.5undercoating, and towing of motor vehicles;
3.6 (iii) building and residential cleaning, maintenance, and disinfecting services and
3.7pest control and exterminating services;
3.8 (iv) detective, security, burglar, fire alarm, and armored car services; but not
3.9including services performed within the jurisdiction they serve by off-duty licensed peace
3.10officers as defined in section
3.11organization for monitoring and electronic surveillance of persons placed on in-home
3.12detention pursuant to court order or under the direction of the Minnesota Department
3.13of Corrections;
3.14 (v) pet grooming services;
3.15 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
3.16and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
3.17plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
3.18clearing contract as defined in section
3.19public utility lines. Services performed under a construction contract for the installation of
3.20shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
3.21 (vii) massages, except when provided by a licensed health care facility or
3.22professional or upon written referral from a licensed health care facility or professional for
3.23treatment of illness, injury, or disease; and
3.24 (viii) the furnishing of lodging, board, and care services for animals in kennels and
3.25other similar arrangements, but excluding veterinary and horse boarding services.
3.26 In applying the provisions of this chapter, the terms "tangible personal property"
3.27and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
3.28and the provision of these taxable services, unless specifically provided otherwise.
3.29Services performed by an employee for an employer are not taxable. Services performed
3.30by a partnership or association for another partnership or association are not taxable if
3.31one of the entities owns or controls more than 80 percent of the voting power of the
3.32equity interest in the other entity. Services performed between members of an affiliated
3.33group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
3.34group of corporations" means those entities that would be classified as members of an
3.35affiliated group as defined under United States Code, title 26, section 1504, disregarding
3.36the exclusions in section 1504(b).
4.1 For purposes of clause (5), "road construction" means construction of (1) public
4.2roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
4.3metropolitan area up to the point of the emergency response location sign.
4.4 (h) A sale and a purchase includes the furnishing for a consideration of tangible
4.5personal property or taxable services by the United States or any of its agencies or
4.6instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
4.7subdivisions.
4.8 (i) A sale and a purchase includes the furnishing for a consideration of
4.9telecommunications services, ancillary services associated with telecommunication
4.10services, cable television services, and direct satellite services
4.11Telecommunication services include, but are not limited to, the following services,
4.12as defined in section
4.13telecommunication service, postpaid calling service, prepaid calling service, prepaid
4.14wireless calling service, and private communication services. The services in this
4.15paragraph are taxed to the extent allowed under federal law.
4.16 (j) A sale and a purchase includes the furnishing for a consideration of installation if
4.17the installation charges would be subject to the sales tax if the installation were provided
4.18by the seller of the item being installed.
4.19 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
4.20to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
4.21the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
4.23EFFECTIVE DATE.This section is effective for sales and purchases made after
4.24June 30, 2011.
