1.1                          A bill for an act 
  1.2             relating to taxation; sales taxes; exempting 
  1.3             nonprescription drugs and residential fuels; amending 
  1.4             Minnesota Statutes 1998, section 297A.25, subdivisions 
  1.5             3 and 23. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 297A.25, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [MEDICINES; MEDICAL DEVICES.] The gross receipts 
  1.10  from the sale of and storage, use, or consumption of prescribed 
  1.11  drugs, prescribed medicine and insulin, intended for use, 
  1.12  internal or external, in the cure, mitigation, treatment or 
  1.13  prevention of illness or disease in human beings are exempt, 
  1.14  together with prescription glasses, fever thermometers, 
  1.15  therapeutic, and prosthetic devices.  "Prescribed Drugs" or 
  1.16  "prescribed medicine" includes over-the-counter drugs or and 
  1.17  medicines as well as medicine prescribed by a licensed 
  1.18  physician.  "Therapeutic devices" includes reusable finger 
  1.19  pricking devices for the extraction of blood, blood glucose 
  1.20  monitoring machines, and other diagnostic agents used in 
  1.21  diagnosing, monitoring, or treating diabetes.  Nonprescription 
  1.22  analgesics consisting principally (determined by the weight of 
  1.23  all ingredients) of acetaminophen, acetylsalicylic acid, 
  1.24  ibuprofen, ketoprofen, naproxen, and other nonprescription 
  1.25  analgesics that are approved by the United States Food and Drug 
  2.1   Administration for internal use by human beings, or a 
  2.2   combination thereof, are exempt. 
  2.3      Medical supplies purchased by a licensed health care 
  2.4   facility or licensed health care professional to provide medical 
  2.5   treatment to residents or patients are exempt.  The exemption 
  2.6   does not apply to medical equipment or components of medical 
  2.7   equipment, laboratory supplies, radiological supplies, and other 
  2.8   items used in providing medical services.  For purposes of this 
  2.9   subdivision, "medical supplies" means adhesive and nonadhesive 
  2.10  bandages, gauze pads and strips, cotton applicators, 
  2.11  antiseptics, nonprescription drugs, eye solution, and other 
  2.12  similar supplies used directly on the resident or patient in 
  2.13  providing medical services. 
  2.14     Sec. 2.  Minnesota Statutes 1998, section 297A.25, 
  2.15  subdivision 23, is amended to read: 
  2.16     Subd. 23.  [RESIDENTIAL HEATING FUELS.] The gross receipts 
  2.17  from the sale of and the storage, use, or consumption of 
  2.18  residential heating fuels are exempt in the following manner: 
  2.19     (1) all fuel oil, coal, wood, steam, hot water, propane 
  2.20  gas, and L.P. gas sold to residential customers for residential 
  2.21  use; 
  2.22     (2) natural gas sold for residential use to customers who 
  2.23  are metered and billed as residential users and who use natural 
  2.24  gas for their primary source of residential heat, for the 
  2.25  billing months of November, December, January, February, March 
  2.26  and April; 
  2.27     (3) electricity sold for residential use to customers who 
  2.28  are metered and billed as residential users and who use 
  2.29  electricity for their primary source of residential heat, for 
  2.30  the billing months of November, December, January, February, 
  2.31  March and April. 
  2.32     Sec. 3.  [EFFECTIVE DATE.] 
  2.33     Sections 1 and 2 are effective for sales made after June 
  2.34  30, 1999.