Bill Text: MN SF435 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Sales tax exemption expansion for purchases and sales to local government units
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2013-02-13 - Referred to Taxes [SF435 Detail]
Download: Minnesota-2013-SF435-Introduced.html
1.2relating to taxation; sales and use; eliminating sales tax on purchases by political
1.3subdivisions;amending Minnesota Statutes 2012, section 297A.70, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
1.6 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.7to the following governments and political subdivisions, or to the listed agencies or
1.8instrumentalities of governments and political subdivisions, are exempt:
1.9(1) the United States and its agencies and instrumentalities;
1.10(2) school districts, local governments, the University of Minnesota, state universities,
1.11community colleges, technical colleges, state academies, the Perpich Minnesota Center for
1.12Arts Education, and an instrumentality of a political subdivision that is accredited as an
1.13optional/special function school by the North Central Association of Colleges and Schools;
1.14(3) hospitals and nursing homes owned and operated by political subdivisions of
1.15the state of tangible personal property and taxable services used at or by hospitals and
1.16nursing homes;
1.17(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
1.18operations provided for in section473.4051 ;
1.19(5) other states or political subdivisions of other states, if the sale would be exempt
1.20from taxation if it occurred in that state; and
1.21(6) public libraries, public library systems, multicounty, multitype library systems as
1.22defined in section134.001 , county law libraries under chapter 134A, state agency libraries,
1.23the state library under section480.09 , and the Legislative Reference Library; and.
1.24(7) towns.
2.1(b) This exemption does not apply to the sales of the following products and services:
2.2(1) building, construction, or reconstruction materials purchased by a contractor
2.3or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.4guaranteed maximum price covering both labor and materials for use in the construction,
2.5alteration, or repair of a building or facility;
2.6(2) construction materials purchased by tax exempt entities or their contractors to
2.7be used in constructing buildings or facilities which will not be used principally by the
2.8tax exempt entities;
2.9(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
2.10except for leases entered into by the United States or its agencies or instrumentalities;
2.11(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
2.12(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.13297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
2.14beverages purchased directly by the United States or its agencies or instrumentalities; or
2.15(5) goods or services purchased by atown local government as inputs to goods and
2.16services that are generally provided by a private business and the purchases would be
2.17taxable if made by a private business engaged in the same activity.
2.18(c) As used in this subdivision, "school districts" means public school entities and
2.19districts of every kind and nature organized under the laws of the state of Minnesota, and
2.20any instrumentality of a school district, as defined in section471.59 .
2.21(d) As used in this subdivision, "goods or services generally provided by a private
2.22business" include, but are not limited to, goods or services provided by liquor stores, gas
2.23and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.24and laundromats. "Goods or services generally provided by a private business" do not
2.25include housing services, sewer and water services, wastewater treatment, ambulance and
2.26other public safety services, correctional services, chore or homemaking services provided
2.27to elderly or disabled individuals, or road and street maintenance or lighting.
2.28(e) As used in this subdivision, "local governments" means cities, counties, and
2.29townships.
2.30EFFECTIVE DATE.This section is effective for sales and purchases made after
2.31June 30, 2013.
1.3subdivisions;amending Minnesota Statutes 2012, section 297A.70, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
1.6 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
1.7to the following governments and political subdivisions, or to the listed agencies or
1.8instrumentalities of governments and political subdivisions, are exempt:
1.9(1) the United States and its agencies and instrumentalities;
1.10(2) school districts, local governments, the University of Minnesota, state universities,
1.11community colleges, technical colleges, state academies, the Perpich Minnesota Center for
1.12Arts Education, and an instrumentality of a political subdivision that is accredited as an
1.13optional/special function school by the North Central Association of Colleges and Schools;
1.14(3) hospitals and nursing homes owned and operated by political subdivisions of
1.15the state of tangible personal property and taxable services used at or by hospitals and
1.16nursing homes;
1.17(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
1.18operations provided for in section
1.19(5) other states or political subdivisions of other states, if the sale would be exempt
1.20from taxation if it occurred in that state; and
1.21(6) public libraries, public library systems, multicounty, multitype library systems as
1.22defined in section
1.23the state library under section
1.24
2.1(b) This exemption does not apply to the sales of the following products and services:
2.2(1) building, construction, or reconstruction materials purchased by a contractor
2.3or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.4guaranteed maximum price covering both labor and materials for use in the construction,
2.5alteration, or repair of a building or facility;
2.6(2) construction materials purchased by tax exempt entities or their contractors to
2.7be used in constructing buildings or facilities which will not be used principally by the
2.8tax exempt entities;
2.9(3) the leasing of a motor vehicle as defined in section
2.10except for leases entered into by the United States or its agencies or instrumentalities;
2.11(4) lodging as defined under section
2.12(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
2.14beverages purchased directly by the United States or its agencies or instrumentalities; or
2.15(5) goods or services purchased by a
2.16services that are generally provided by a private business and the purchases would be
2.17taxable if made by a private business engaged in the same activity.
2.18(c) As used in this subdivision, "school districts" means public school entities and
2.19districts of every kind and nature organized under the laws of the state of Minnesota, and
2.20any instrumentality of a school district, as defined in section
2.21(d) As used in this subdivision, "goods or services generally provided by a private
2.22business" include, but are not limited to, goods or services provided by liquor stores, gas
2.23and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
2.24and laundromats. "Goods or services generally provided by a private business" do not
2.25include housing services, sewer and water services, wastewater treatment, ambulance and
2.26other public safety services, correctional services, chore or homemaking services provided
2.27to elderly or disabled individuals, or road and street maintenance or lighting.
2.28(e) As used in this subdivision, "local governments" means cities, counties, and
2.29townships.
2.30EFFECTIVE DATE.This section is effective for sales and purchases made after
2.31June 30, 2013.
