Minnesota SF 216: Contractor construction materials purchase sales and use tax exemption modification

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; sales and use; modifying exemption provisions for construction​
1.3 materials by certain contractors; adding a refund provision; amending Minnesota​
1.4 Statutes 2020, sections 297A.71, by adding a subdivision; 297A.75, subdivisions​
1.5 1, 2, 3.​
1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.7 Section 1. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision​
1.8 to read:​
1.9 Subd. 53.Construction materials purchased by contractors; exemption for certain​
1.10 entities.(a) Building, construction, or reconstruction materials, supplies, and equipment​
1.11 purchased by a contractor, subcontractor, or builder and used or consumed in or incorporated​
1.12 into buildings or facilities used principally by the following entities are exempt:​
1.13 (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c);​
1.14 (2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d);​
1.15 (3) hospitals and nursing homes owned and operated by political subdivisions of the​
1.16 state, as listed in section 297A.70, subdivision 2, paragraph (a), clause (3);​
1.17 (4) county law libraries under chapter 134A and public libraries, regional public library​
1.18 systems, and multicounty, multitype library systems as defined in section 134.001;​
1.19 (5) nonprofit groups, as defined under section 297A.70, subdivision 4;​
1.20 (6) hospitals, outpatient surgical centers, and critical access dental providers, as defined​
1.21 under section 297A.70, subdivision 7; and​
1​Section 1.​
21-00910 as introduced​01/14/21 REVISOR EAP/KA​
SENATE​
STATE OF MINNESOTA​
S.F. No. 216​NINETY-SECOND SESSION​
(SENATE AUTHORS: RARICK, Draheim and Wiger)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​128​01/21/2021​
Referred to Taxes​
Author added Draheim​199​01/28/2021​
Author added Wiger​257​02/04/2021​

2.1 (7) nursing homes and boarding care homes, as defined under section 297A.70,​
2.2 subdivision 18.​
2.3 (b) Materials, supplies, and equipment used in the construction, reconstruction, repair,​
2.4 maintenance, or improvement of public infrastructure of any kind including, but not limited​
2.5 to, roads, bridges, culverts, drinking water facilities, and wastewater facilities purchased​
2.6 by a contractor or subcontractor of the following entities are exempt:​
2.7 (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); or​
2.8 (2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d).​
2.9 (c) The tax on purchases exempt under this subdivision must be imposed and collected​
2.10 as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner​
2.11 provided in section 297A.75.​
2.12 EFFECTIVE DATE.This section is effective for sales and purchases made after June​
2.13 30, 2021.​
2.14 Sec. 2. Minnesota Statutes 2020, section 297A.75, subdivision 1, is amended to read:​
2.15 Subdivision 1. Tax collected.The tax on the gross receipts from the sale of the following​
2.16 exempt items must be imposed and collected as if the sale were taxable and the rate under​
2.17 section 297A.62, subdivision 1, applied. The exempt items include:​
2.18 (1) building materials for an agricultural processing facility exempt under section​
2.19 297A.71, subdivision 13;​
2.20 (2) building materials for mineral production facilities exempt under section 297A.71,​
2.21 subdivision 14;​
2.22 (3) building materials for correctional facilities under section 297A.71, subdivision 3;​
2.23 (4) building materials used in a residence for veterans with a disability exempt under​
2.24 section 297A.71, subdivision 11;​
2.25 (5) elevators and building materials exempt under section 297A.71, subdivision 12;​
2.26 (6) materials and supplies for qualified low-income housing under section 297A.71,​
2.27 subdivision 23;​
2.28 (7) materials, supplies, and equipment for municipal electric utility facilities under​
2.29 section 297A.71, subdivision 35;​
2​Sec. 2.​
21-00910 as introduced​01/14/21 REVISOR EAP/KA​

3.1 (8) equipment and materials used for the generation, transmission, and distribution of​
3.2 electrical energy and an aerial camera package exempt under section 297A.68, subdivision​
3.3 37;​
3.4 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph​
3.5 (a), clause (10);​
3.6 (10) materials, supplies, and equipment for construction or improvement of projects and​
3.7 facilities under section 297A.71, subdivision 40;​
3.8 (11) materials, supplies, and equipment for construction, improvement, or expansion of​
3.9 a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;​
3.10 (12) enterprise information technology equipment and computer software for use in a​
3.11 qualified data center exempt under section 297A.68, subdivision 42;​
3.12 (13) materials, supplies, and equipment for q