1.1 	A bill for an act
1.2 	relating to taxation; sales and use; providing a reduced rate for electricity, natural 
1.3 	or artificial gas, propane, and water sold to restaurants;amending Minnesota 
1.4 	Statutes 2016, section 297A.62, subdivision 1, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 297A.62, subdivision 1, is amended to read:
1.7 		Subdivision 1.Generally. Except as otherwise provided in subdivision 3 or 3a, or in 
1.8 	this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as 
1.9 	defined in section 297A.61, subdivision 4, made in this state or to a destination in this state 
1.10 	by a person who is required to have or voluntarily obtains a permit under section 297A.83, 
1.11 	subdivision 1.

1.12 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
1.13 	30, 2017.

1.14 	Sec. 2. Minnesota Statutes 2016, section 297A.62, is amended by adding a subdivision to 
1.15 	read:
1.16 		Subd. 3a.Restaurant utilities. (a) For retail sales of electricity, natural or artificial gas, 
1.17 	propane, and water purchased and used by a restaurant located in this state, the sales tax 
1.18 	under subdivisions 1 and 1a is imposed on 65 percent of the sales price.
1.19 	(b) For purposes of this subdivision, "restaurant" means a facility:
1.20 	(1) that is operated for profit;
1.21 	(2) where the usual and customary business is the serving of meals to consumers;
2.1 	(3) that has a kitchen within the facility; and
2.2 	(4) that receives at least 70 percent of its gross receipts from the sale of prepared food.
2.3 	(c) For purposes of this subdivision, "prepared food" has the meaning given under section 
2.4 	297A.61, subdivision 31.

2.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
2.6 	30, 2017.