Bill Text: MN SF371 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Sales tax exemption expansion for purchases and sales to local government units
Sponsorship: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2011-02-17 - Referred to Taxes [SF371 Detail]
Download: Minnesota-2011-SF371-Introduced.html
1.2relating to taxation; sales and use; eliminating sales tax on purchases by political
1.3subdivisions;amending Minnesota Statutes 2010, section 297A.70, subdivisions
1.41, 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Scope. (a) To the extent provided in this section, the gross receipts
1.9from sales of items to or by, and storage, distribution, use, or consumption of items by the
1.10organizations or units of local government listed in this section are specifically exempted
1.11from the taxes imposed by this chapter.
1.12(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
1.13governments and political subdivisions listed in this section are exempt from the taxes
1.14imposed by this chapter.
1.15(c) "Sales" includes purchases under an installment contract or lease purchase
1.16agreement under section465.71 .
1.17EFFECTIVE DATE.This section is effective for sales and purchases made after
1.18June 30, 2011.
1.19 Sec. 2. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
1.20 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.21to the following governments and political subdivisions, or to the listed agencies or
1.22instrumentalities of governments and political subdivisions, are exempt:
1.23(1) the United States and its agencies and instrumentalities;
2.1(2) school districts, local governments, the University of Minnesota, state
2.2universities, community colleges, technical colleges, state academies, the Perpich
2.3Minnesota Center for Arts Education, and an instrumentality of a political subdivision
2.4that is accredited as an optional/special function school by the North Central Association
2.5of Colleges and Schools;
2.6(3) hospitals and nursing homes owned and operated by political subdivisions of
2.7the state of tangible personal property and taxable services used at or by hospitals and
2.8nursing homes;
2.9(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
2.10operations provided for in section473.4051 ;
2.11(5) other states or political subdivisions of other states, if the sale would be exempt
2.12from taxation if it occurred in that state; and
2.13(6) sales to public libraries, public library systems, multicounty, multitype library
2.14systems as defined in section134.001 , county law libraries under chapter 134A, state
2.15agency libraries, the state library under section480.09 , and the Legislative Reference
2.16Library.
2.17(b) This exemption does not apply to the sales of the following products and services:
2.18(1) building, construction, or reconstruction materials purchased by a contractor
2.19or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.20guaranteed maximum price covering both labor and materials for use in the construction,
2.21alteration, or repair of a building or facility;
2.22(2) construction materials purchased by tax exempt entities or their contractors to
2.23be used in constructing buildings or facilities which will not be used principally by the
2.24tax exempt entities;
2.25(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
2.26except for leases entered into by the United States or its agencies or instrumentalities; or
2.27(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g),
2.28clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
2.29section297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks,
2.30and alcoholic beverages purchased directly by the United States or its agencies or
2.31instrumentalities.
2.32(c) As used in this subdivision, "school districts" means public school entities and
2.33districts of every kind and nature organized under the laws of the state of Minnesota, and
2.34any instrumentality of a school district, as defined in section471.59 .
2.35(d) As used in this subdivision, "local governments" means cities, counties, and
2.36townships.
3.1EFFECTIVE DATE.This section is effective for sales and purchases made after
3.2June 30, 2011.
3.3 Sec. 3. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
3.4 Subd. 3. Sales of certain goods and services to government. (a) The following
3.5sales to or use by the specified governments and political subdivisions of the state are
3.6exempt:
3.7 (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
3.8fire apparatus to a political subdivision;
3.9 (2) machinery and equipment, except for motor vehicles, used directly for mixed
3.10municipal solid waste management services at a solid waste disposal facility as defined in
3.11section115A.03, subdivision 10 ;
3.12 (3) chore and homemaking services to a political subdivision of the state to be
3.13provided to elderly or disabled individuals;
3.14 (4) telephone services to the Office of Enterprise Technology that are used to provide
3.15telecommunications services through the enterprise technology revolving fund;
3.16 (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
3.17or authorized by and for the use of an organized fire department, fire protection district, or
3.18fire company regularly charged with the responsibility of providing fire protection to the
3.19state or a political subdivision;
3.20 (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
3.21protection, if purchased by a law enforcement agency of the state or a political subdivision
3.22of the state, or a licensed peace officer, as defined in section626.84, subdivision 1 ;
3.23 (7) motor vehicles purchased or leased by political subdivisions of the state if the
3.24vehicles are exempt from registration under section168.012, subdivision 1 , paragraph (b),
3.25exempt from taxation under section473.448 , or exempt from the motor vehicle sales tax
3.26under section297B.03 , clause (12);
3.27 (8) equipment designed to process, dewater, and recycle biosolids for wastewater
3.28treatment facilities of political subdivisions, and materials incidental to installation of
3.29that equipment;
3.30(9) sales to a town of gravel and of machinery, equipment, and accessories, except
3.31motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
3.32motor vehicles exempt from tax under section
297B.03, clause (10);
3.33(10) (9) the removal of trees, bushes, or shrubs for the construction and maintenance
3.34of roads, trails, or firebreaks when purchased by an agency of the state or a political
3.35subdivision of the state; and
4.1(11) (10) purchases by the Metropolitan Council or the Department of Transportation
4.2of vehicles and repair parts to equip operations provided for in section174.90 , including,
4.3but not limited to, the Northstar Corridor Rail project.
4.4 (b) For purposes of this subdivision, "firefighters personal protective equipment"
4.5means helmets, including face shields, chin straps, and neck liners; bunker coats and
4.6pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
4.7protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
4.8personal alert safety systems; spanner belts; optical or thermal imaging search devices;
4.9and all safety equipment required by the Occupational Safety and Health Administration.
4.10 (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
4.11imposed and collected as if the rate under section297A.62, subdivision 1 , applied and
4.12then refunded in the manner provided in section297A.75 .
4.13EFFECTIVE DATE.This section is effective for sales and purchases made after
4.14June 30, 2011.
1.3subdivisions;amending Minnesota Statutes 2010, section 297A.70, subdivisions
1.41, 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Scope. (a) To the extent provided in this section, the gross receipts
1.9from sales of items to or by, and storage, distribution, use, or consumption of items by the
1.10organizations or units of local government listed in this section are specifically exempted
1.11from the taxes imposed by this chapter.
1.12(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
1.13governments and political subdivisions listed in this section are exempt from the taxes
1.14imposed by this chapter.
1.15(c) "Sales" includes purchases under an installment contract or lease purchase
1.16agreement under section
1.17EFFECTIVE DATE.This section is effective for sales and purchases made after
1.18June 30, 2011.
1.19 Sec. 2. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
1.20 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.21to the following governments and political subdivisions, or to the listed agencies or
1.22instrumentalities of governments and political subdivisions, are exempt:
1.23(1) the United States and its agencies and instrumentalities;
2.1(2) school districts, local governments, the University of Minnesota, state
2.2universities, community colleges, technical colleges, state academies, the Perpich
2.3Minnesota Center for Arts Education, and an instrumentality of a political subdivision
2.4that is accredited as an optional/special function school by the North Central Association
2.5of Colleges and Schools;
2.6(3) hospitals and nursing homes owned and operated by political subdivisions of
2.7the state of tangible personal property and taxable services used at or by hospitals and
2.8nursing homes;
2.9(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
2.10operations provided for in section
2.11(5) other states or political subdivisions of other states, if the sale would be exempt
2.12from taxation if it occurred in that state; and
2.13(6) sales to public libraries, public library systems, multicounty, multitype library
2.14systems as defined in section
2.15agency libraries, the state library under section
2.16Library.
2.17(b) This exemption does not apply to the sales of the following products and services:
2.18(1) building, construction, or reconstruction materials purchased by a contractor
2.19or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.20guaranteed maximum price covering both labor and materials for use in the construction,
2.21alteration, or repair of a building or facility;
2.22(2) construction materials purchased by tax exempt entities or their contractors to
2.23be used in constructing buildings or facilities which will not be used principally by the
2.24tax exempt entities;
2.25(3) the leasing of a motor vehicle as defined in section
2.26except for leases entered into by the United States or its agencies or instrumentalities; or
2.27(4) lodging as defined under section
2.28clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
2.29section
2.30and alcoholic beverages purchased directly by the United States or its agencies or
2.31instrumentalities.
2.32(c) As used in this subdivision, "school districts" means public school entities and
2.33districts of every kind and nature organized under the laws of the state of Minnesota, and
2.34any instrumentality of a school district, as defined in section
2.35(d) As used in this subdivision, "local governments" means cities, counties, and
2.36townships.
3.1EFFECTIVE DATE.This section is effective for sales and purchases made after
3.2June 30, 2011.
3.3 Sec. 3. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
3.4 Subd. 3. Sales of certain goods and services to government. (a) The following
3.5sales to or use by the specified governments and political subdivisions of the state are
3.6exempt:
3.7 (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
3.8fire apparatus to a political subdivision;
3.9 (2) machinery and equipment, except for motor vehicles, used directly for mixed
3.10municipal solid waste management services at a solid waste disposal facility as defined in
3.11section
3.12 (3) chore and homemaking services to a political subdivision of the state to be
3.13provided to elderly or disabled individuals;
3.14 (4) telephone services to the Office of Enterprise Technology that are used to provide
3.15telecommunications services through the enterprise technology revolving fund;
3.16 (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
3.17or authorized by and for the use of an organized fire department, fire protection district, or
3.18fire company regularly charged with the responsibility of providing fire protection to the
3.19state or a political subdivision;
3.20 (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
3.21protection, if purchased by a law enforcement agency of the state or a political subdivision
3.22of the state, or a licensed peace officer, as defined in section
3.23 (7) motor vehicles purchased or leased by political subdivisions of the state if the
3.24vehicles are exempt from registration under section
3.25exempt from taxation under section
3.26under section
3.27 (8) equipment designed to process, dewater, and recycle biosolids for wastewater
3.28treatment facilities of political subdivisions, and materials incidental to installation of
3.29that equipment;
3.30
3.31
3.32
3.33
3.34of roads, trails, or firebreaks when purchased by an agency of the state or a political
3.35subdivision of the state; and
4.1
4.2of vehicles and repair parts to equip operations provided for in section
4.3but not limited to, the Northstar Corridor Rail project.
4.4 (b) For purposes of this subdivision, "firefighters personal protective equipment"
4.5means helmets, including face shields, chin straps, and neck liners; bunker coats and
4.6pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
4.7protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
4.8personal alert safety systems; spanner belts; optical or thermal imaging search devices;
4.9and all safety equipment required by the Occupational Safety and Health Administration.
4.10 (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
4.11imposed and collected as if the rate under section
4.12then refunded in the manner provided in section
4.13EFFECTIVE DATE.This section is effective for sales and purchases made after
4.14June 30, 2011.
