Bill Text: MN SF2288 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Sales tax exemption modification between established religious orders and affiliated institutions of higher education
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-08 - Referred to Taxes [SF2288 Detail]
Download: Minnesota-2011-SF2288-Introduced.html
1.2relating to taxation; sales and use; modifying exemptions;amending Minnesota
1.3Statutes 2010, 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 2010, section 297A.70, subdivision 4, is amended to
1.6read:
1.7 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
1.8(b), to the following "nonprofit organizations" are exempt:
1.9(1) a corporation, society, association, foundation, or institution organized and
1.10operated exclusively for charitable, religious, or educational purposes if the item
1.11purchased is used in the performance of charitable, religious, or educational functions; and
1.12(2) any senior citizen group or association of groups that:
1.13(i) in general limits membership to persons who are either age 55 or older, or
1.14physically disabled;
1.15(ii) is organized and operated exclusively for pleasure, recreation, and other
1.16nonprofit purposes, not including housing, no part of the net earnings of which inures to
1.17the benefit of any private shareholders; and
1.18(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
1.19For purposes of this subdivision, charitable purpose includes the maintenance of a
1.20cemetery owned by a religious organization.
1.21(b) This exemption does not apply to the following sales:
1.22(1) building, construction, or reconstruction materials purchased by a contractor
1.23or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.1guaranteed maximum price covering both labor and materials for use in the construction,
2.2alteration, or repair of a building or facility;
2.3(2) construction materials purchased by tax-exempt entities or their contractors to
2.4be used in constructing buildings or facilities that will not be used principally by the
2.5tax-exempt entities; and
2.6(3) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
2.7(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.8297A.67, subdivision 2
, except wine purchased by an established religious organization
2.9for sacramental purposes or as allowed under subdivision 9a; and
2.10(4) leasing of a motor vehicle as defined in section297B.01, subdivision 11 , except
2.11as provided in paragraph (c).
2.12(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.13297B.01, subdivision 11
, only if the vehicle is:
2.14(1) a truck, as defined in section168.002 , a bus, as defined in section
168.002 , or a
2.15passenger automobile, as defined in section168.002 , if the automobile is designed and
2.16used for carrying more than nine persons including the driver; and
2.17(2) intended to be used primarily to transport tangible personal property or
2.18individuals, other than employees, to whom the organization provides service in
2.19performing its charitable, religious, or educational purpose.
2.20(d) A limited liability company also qualifies for exemption under this subdivision if
2.21(1) it consists of a sole member that would qualify for the exemption, and (2) the items
2.22purchased qualify for the exemption.
2.23EFFECTIVE DATE.This section is effective for sales and purchases made after
2.24June 30, 2012.
2.25 Sec. 2. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision
2.26to read:
2.27 Subd. 9a. Established religious orders. Sales of lodging, prepared food, candy,
2.28soft drinks, and alcoholic beverages at noncatered events between an established religious
2.29order and an affiliated institution of higher education are exempt. For purposes of this
2.30subdivision, an institution of higher education is "affiliated" with an established religious
2.31order if members of the religious order are represented on the governing board of the
2.32institution of higher education and the two organization share campus space and common
2.33facilities.
3.1EFFECTIVE DATE.This section is effective for sales and purchases made after
3.2June 30, 2012.
1.3Statutes 2010, 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 2010, section 297A.70, subdivision 4, is amended to
1.6read:
1.7 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
1.8(b), to the following "nonprofit organizations" are exempt:
1.9(1) a corporation, society, association, foundation, or institution organized and
1.10operated exclusively for charitable, religious, or educational purposes if the item
1.11purchased is used in the performance of charitable, religious, or educational functions; and
1.12(2) any senior citizen group or association of groups that:
1.13(i) in general limits membership to persons who are either age 55 or older, or
1.14physically disabled;
1.15(ii) is organized and operated exclusively for pleasure, recreation, and other
1.16nonprofit purposes, not including housing, no part of the net earnings of which inures to
1.17the benefit of any private shareholders; and
1.18(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
1.19For purposes of this subdivision, charitable purpose includes the maintenance of a
1.20cemetery owned by a religious organization.
1.21(b) This exemption does not apply to the following sales:
1.22(1) building, construction, or reconstruction materials purchased by a contractor
1.23or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.1guaranteed maximum price covering both labor and materials for use in the construction,
2.2alteration, or repair of a building or facility;
2.3(2) construction materials purchased by tax-exempt entities or their contractors to
2.4be used in constructing buildings or facilities that will not be used principally by the
2.5tax-exempt entities; and
2.6(3) lodging as defined under section
2.7(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.9for sacramental purposes or as allowed under subdivision 9a; and
2.10(4) leasing of a motor vehicle as defined in section
2.11as provided in paragraph (c).
2.12(c) This exemption applies to the leasing of a motor vehicle as defined in section
2.14(1) a truck, as defined in section
2.15passenger automobile, as defined in section
2.16used for carrying more than nine persons including the driver; and
2.17(2) intended to be used primarily to transport tangible personal property or
2.18individuals, other than employees, to whom the organization provides service in
2.19performing its charitable, religious, or educational purpose.
2.20(d) A limited liability company also qualifies for exemption under this subdivision if
2.21(1) it consists of a sole member that would qualify for the exemption, and (2) the items
2.22purchased qualify for the exemption.
2.23EFFECTIVE DATE.This section is effective for sales and purchases made after
2.24June 30, 2012.
2.25 Sec. 2. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision
2.26to read:
2.27 Subd. 9a. Established religious orders. Sales of lodging, prepared food, candy,
2.28soft drinks, and alcoholic beverages at noncatered events between an established religious
2.29order and an affiliated institution of higher education are exempt. For purposes of this
2.30subdivision, an institution of higher education is "affiliated" with an established religious
2.31order if members of the religious order are represented on the governing board of the
2.32institution of higher education and the two organization share campus space and common
2.33facilities.
3.1EFFECTIVE DATE.This section is effective for sales and purchases made after
3.2June 30, 2012.
