Bill Text: MN SF957 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Market value homestead credit reimbursement for residential homesteads located in towns elimination; sales tax on towns purchases elimination
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-03-21 - Referred to Taxes [SF957 Detail]
Download: Minnesota-2011-SF957-Introduced.html
1.2relating to taxation; eliminating the market value homestead credit reimbursement
1.3for residential homesteads located in towns; eliminating the sales tax on
1.4purchases by towns;amending Minnesota Statutes 2010, sections 273.1384,
1.5subdivision 4; 297A.70, subdivisions 1, 2, 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to
1.8read:
1.9 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
1.10taxing jurisdiction, other than towns and school districts, for the tax reductions granted
1.11under this section in two equal installments on October 31 and December 26 of the taxes
1.12payable year for which the reductions are granted, including in each payment the prior
1.13year adjustments certified on the abstracts for that taxes payable year. The reimbursements
1.14related to tax increments shall be issued in one installment each year on December 26.
1.15(b) The commissioner of revenue shall certify the total of the tax reductions
1.16granted under this section for each taxes payable year within each school district to the
1.17commissioner of the Department of Education and the commissioner of education shall
1.18pay the reimbursement amounts to each school district as provided in section273.1392 .
1.19 Sec. 2. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:
1.20 Subdivision 1. Scope. (a) To the extent provided in this section, the gross receipts
1.21from sales of items to or by, and storage, distribution, use, or consumption of items by the
1.22organizations or units of local government listed in this section are specifically exempted
1.23from the taxes imposed by this chapter.
2.1(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
2.2governments and political subdivisions listed in this section are exempt from the taxes
2.3imposed by this chapter.
2.4(c) "Sales" includes purchases under an installment contract or lease purchase
2.5agreement under section465.71 .
2.6EFFECTIVE DATE.This section is effective for sales and purchases made after
2.7June 30, 2011.
2.8 Sec. 3. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
2.9 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
2.10to the following governments and political subdivisions, or to the listed agencies or
2.11instrumentalities of governments and political subdivisions, are exempt:
2.12(1) the United States and its agencies and instrumentalities;
2.13(2) school districts, the University of Minnesota, state universities, community
2.14colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
2.15Education, and an instrumentality of a political subdivision that is accredited as an
2.16optional/special function school by the North Central Association of Colleges and Schools;
2.17(3) hospitals and nursing homes owned and operated by political subdivisions of
2.18the state of tangible personal property and taxable services used at or by hospitals and
2.19nursing homes;
2.20(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
2.21operations provided for in section473.4051 ;
2.22(5) other states or political subdivisions of other states, if the sale would be exempt
2.23from taxation if it occurred in that state;and
2.24(6)sales to public libraries, public library systems, multicounty, multitype library
2.25systems as defined in section134.001 , county law libraries under chapter 134A, state
2.26agency libraries, the state library under section480.09 , and the Legislative Reference
2.27Library; and
2.28(7) towns.
2.29(b) This exemption does not apply to the sales of the following products and services:
2.30(1) building, construction, or reconstruction materials purchased by a contractor
2.31or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.32guaranteed maximum price covering both labor and materials for use in the construction,
2.33alteration, or repair of a building or facility;
3.1(2) construction materials purchased by tax exempt entities or their contractors to
3.2be used in constructing buildings or facilities which will not be used principally by the
3.3tax exempt entities;
3.4(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
3.5except for leases entered into by the United States or its agencies or instrumentalities; or
3.6(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g),
3.7clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
3.8section297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks,
3.9and alcoholic beverages purchased directly by the United States or its agencies or
3.10instrumentalities.
3.11(c) As used in this subdivision, "school districts" means public school entities and
3.12districts of every kind and nature organized under the laws of the state of Minnesota, and
3.13any instrumentality of a school district, as defined in section471.59 .
3.14EFFECTIVE DATE.This section is effective for sales and purchases made after
3.15June 30, 2011.
3.16 Sec. 4. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
3.17 Subd. 3. Sales of certain goods and services to government. (a) The following
3.18sales to or use by the specified governments and political subdivisions of the state are
3.19exempt:
3.20 (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
3.21fire apparatus to a political subdivision;
3.22 (2) machinery and equipment, except for motor vehicles, used directly for mixed
3.23municipal solid waste management services at a solid waste disposal facility as defined in
3.24section115A.03, subdivision 10 ;
3.25 (3) chore and homemaking services to a political subdivision of the state to be
3.26provided to elderly or disabled individuals;
3.27 (4) telephone services to the Office of Enterprise Technology that are used to provide
3.28telecommunications services through the enterprise technology revolving fund;
3.29 (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
3.30or authorized by and for the use of an organized fire department, fire protection district, or
3.31fire company regularly charged with the responsibility of providing fire protection to the
3.32state or a political subdivision;
3.33 (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
3.34protection, if purchased by a law enforcement agency of the state or a political subdivision
3.35of the state, or a licensed peace officer, as defined in section626.84, subdivision 1 ;
4.1 (7) motor vehicles purchased or leased by political subdivisions of the state if the
4.2vehicles are exempt from registration under section168.012, subdivision 1 , paragraph (b),
4.3exempt from taxation under section473.448 , or exempt from the motor vehicle sales tax
4.4under section297B.03 , clause (12);
4.5 (8) equipment designed to process, dewater, and recycle biosolids for wastewater
4.6treatment facilities of political subdivisions, and materials incidental to installation of
4.7that equipment;
4.8(9) sales to a town of gravel and of machinery, equipment, and accessories, except
4.9motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
4.10motor vehicles exempt from tax under section
297B.03, clause (10);
4.11(10) (9) the removal of trees, bushes, or shrubs for the construction and maintenance
4.12of roads, trails, or firebreaks when purchased by an agency of the state or a political
4.13subdivision of the state; and
4.14(11) (10) purchases by the Metropolitan Council or the Department of Transportation
4.15of vehicles and repair parts to equip operations provided for in section174.90 , including,
4.16but not limited to, the Northstar Corridor Rail project.
4.17 (b) For purposes of this subdivision, "firefighters personal protective equipment"
4.18means helmets, including face shields, chin straps, and neck liners; bunker coats and
4.19pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
4.20protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
4.21personal alert safety systems; spanner belts; optical or thermal imaging search devices;
4.22and all safety equipment required by the Occupational Safety and Health Administration.
4.23 (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
4.24imposed and collected as if the rate under section297A.62, subdivision 1 , applied and
4.25then refunded in the manner provided in section297A.75 .
4.26EFFECTIVE DATE.This section is effective for sales and purchases made after
4.27June 30, 2011.
1.3for residential homesteads located in towns; eliminating the sales tax on
1.4purchases by towns;amending Minnesota Statutes 2010, sections 273.1384,
1.5subdivision 4; 297A.70, subdivisions 1, 2, 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to
1.8read:
1.9 Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
1.10taxing jurisdiction, other than towns and school districts, for the tax reductions granted
1.11under this section in two equal installments on October 31 and December 26 of the taxes
1.12payable year for which the reductions are granted, including in each payment the prior
1.13year adjustments certified on the abstracts for that taxes payable year. The reimbursements
1.14related to tax increments shall be issued in one installment each year on December 26.
1.15(b) The commissioner of revenue shall certify the total of the tax reductions
1.16granted under this section for each taxes payable year within each school district to the
1.17commissioner of the Department of Education and the commissioner of education shall
1.18pay the reimbursement amounts to each school district as provided in section
1.19 Sec. 2. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:
1.20 Subdivision 1. Scope. (a) To the extent provided in this section, the gross receipts
1.21from sales of items to or by, and storage, distribution, use, or consumption of items by the
1.22organizations or units of local government listed in this section are specifically exempted
1.23from the taxes imposed by this chapter.
2.1(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
2.2governments and political subdivisions listed in this section are exempt from the taxes
2.3imposed by this chapter.
2.4(c) "Sales" includes purchases under an installment contract or lease purchase
2.5agreement under section
2.6EFFECTIVE DATE.This section is effective for sales and purchases made after
2.7June 30, 2011.
2.8 Sec. 3. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
2.9 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
2.10to the following governments and political subdivisions, or to the listed agencies or
2.11instrumentalities of governments and political subdivisions, are exempt:
2.12(1) the United States and its agencies and instrumentalities;
2.13(2) school districts, the University of Minnesota, state universities, community
2.14colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
2.15Education, and an instrumentality of a political subdivision that is accredited as an
2.16optional/special function school by the North Central Association of Colleges and Schools;
2.17(3) hospitals and nursing homes owned and operated by political subdivisions of
2.18the state of tangible personal property and taxable services used at or by hospitals and
2.19nursing homes;
2.20(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
2.21operations provided for in section
2.22(5) other states or political subdivisions of other states, if the sale would be exempt
2.23from taxation if it occurred in that state;
2.24(6)
2.25systems as defined in section
2.26agency libraries, the state library under section
2.27Library; and
2.28(7) towns.
2.29(b) This exemption does not apply to the sales of the following products and services:
2.30(1) building, construction, or reconstruction materials purchased by a contractor
2.31or a subcontractor as a part of a lump-sum contract or similar type of contract with a
2.32guaranteed maximum price covering both labor and materials for use in the construction,
2.33alteration, or repair of a building or facility;
3.1(2) construction materials purchased by tax exempt entities or their contractors to
3.2be used in constructing buildings or facilities which will not be used principally by the
3.3tax exempt entities;
3.4(3) the leasing of a motor vehicle as defined in section
3.5except for leases entered into by the United States or its agencies or instrumentalities; or
3.6(4) lodging as defined under section
3.7clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
3.8section
3.9and alcoholic beverages purchased directly by the United States or its agencies or
3.10instrumentalities.
3.11(c) As used in this subdivision, "school districts" means public school entities and
3.12districts of every kind and nature organized under the laws of the state of Minnesota, and
3.13any instrumentality of a school district, as defined in section
3.14EFFECTIVE DATE.This section is effective for sales and purchases made after
3.15June 30, 2011.
3.16 Sec. 4. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
3.17 Subd. 3. Sales of certain goods and services to government. (a) The following
3.18sales to or use by the specified governments and political subdivisions of the state are
3.19exempt:
3.20 (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
3.21fire apparatus to a political subdivision;
3.22 (2) machinery and equipment, except for motor vehicles, used directly for mixed
3.23municipal solid waste management services at a solid waste disposal facility as defined in
3.24section
3.25 (3) chore and homemaking services to a political subdivision of the state to be
3.26provided to elderly or disabled individuals;
3.27 (4) telephone services to the Office of Enterprise Technology that are used to provide
3.28telecommunications services through the enterprise technology revolving fund;
3.29 (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
3.30or authorized by and for the use of an organized fire department, fire protection district, or
3.31fire company regularly charged with the responsibility of providing fire protection to the
3.32state or a political subdivision;
3.33 (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
3.34protection, if purchased by a law enforcement agency of the state or a political subdivision
3.35of the state, or a licensed peace officer, as defined in section
4.1 (7) motor vehicles purchased or leased by political subdivisions of the state if the
4.2vehicles are exempt from registration under section
4.3exempt from taxation under section
4.4under section
4.5 (8) equipment designed to process, dewater, and recycle biosolids for wastewater
4.6treatment facilities of political subdivisions, and materials incidental to installation of
4.7that equipment;
4.8
4.9
4.10
4.11
4.12of roads, trails, or firebreaks when purchased by an agency of the state or a political
4.13subdivision of the state; and
4.14
4.15of vehicles and repair parts to equip operations provided for in section
4.16but not limited to, the Northstar Corridor Rail project.
4.17 (b) For purposes of this subdivision, "firefighters personal protective equipment"
4.18means helmets, including face shields, chin straps, and neck liners; bunker coats and
4.19pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
4.20protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
4.21personal alert safety systems; spanner belts; optical or thermal imaging search devices;
4.22and all safety equipment required by the Occupational Safety and Health Administration.
4.23 (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
4.24imposed and collected as if the rate under section
4.25then refunded in the manner provided in section
4.26EFFECTIVE DATE.This section is effective for sales and purchases made after
4.27June 30, 2011.
