1.1                          A bill for an act 
  1.2             relating to taxes; sales and use tax; exempting 
  1.3             construction materials and equipment for a maintenance 
  1.4             facility in the city of Hastings and for improvement 
  1.5             of the city hall in the city of Lake City; amending 
  1.6             Minnesota Statutes 2000, sections 297A.71, by adding 
  1.7             subdivisions; 297A.75. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 297A.71, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 23.  [CONSTRUCTION MATERIALS AND EQUIPMENT; HASTINGS 
  1.12  MAINTENANCE FACILITY.] Materials and supplies used or consumed 
  1.13  in, and machinery and equipment incorporated into, the 
  1.14  construction and improvement of a maintenance facility in the 
  1.15  city of Hastings to be used jointly by the city of Hastings and 
  1.16  independent school district No. 200, Hastings, are exempt. 
  1.17     The tax must be imposed and collected as if the rate under 
  1.18  section 297A.62, subdivision 1, applied, and then refunded in 
  1.19  the manner provided in section 297A.75. 
  1.20     <b>[EFFECTIVE DATE.]</b> This section is effective for sales after 
  1.21  April 30, 2001. 
  1.22     Sec. 2.  Minnesota Statutes 2000, section 297A.71, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 24.  [CONSTRUCTION MATERIALS AND EQUIPMENT; CITY HALL 
  1.25  IN LAKE CITY.] Materials and supplies used or consumed in, and 
  1.26  machinery and equipment incorporated into, the construction of 
  2.1   an addition to, renovation, and improvement of the city hall in 
  2.2   the city of Lake City are exempt. 
  2.3      The tax must be imposed and collected as if the rate under 
  2.4   section 297A.62, subdivision 1, applied, and then refunded in 
  2.5   the manner provided in section 297A.75. 
  2.6      <b>[EFFECTIVE DATE.]</b> This section is effective for sales after 
  2.7   June 30, 2001. 
  2.8      Sec. 3.  Minnesota Statutes 2000, section 297A.75, is 
  2.9   amended to read: 
  2.10     297A.75 [REFUND; APPROPRIATION.] 
  2.11     Subdivision 1.  [TAX COLLECTED.] The tax on the gross 
  2.12  receipts from the sale of the following exempt items must be 
  2.13  imposed and collected as if the sale were taxable and the rate 
  2.14  under section 297A.62, subdivision 1, applied.  The exempt items 
  2.15  include: 
  2.16     (1) capital equipment exempt under section 297A.68, 
  2.17  subdivision 5; 
  2.18     (2) building materials for an agricultural processing 
  2.19  facility exempt under section 297A.71, subdivision 13; 
  2.20     (3) building materials for mineral production facilities 
  2.21  exempt under section 297A.71, subdivision 14; 
  2.22     (4) building materials for correctional facilities under 
  2.23  section 297A.71, subdivision 3; 
  2.24     (5) building materials used in a residence for disabled 
  2.25  veterans exempt under section 297A.71, subdivision 11; and 
  2.26     (6) chair lifts, ramps, elevators, and associated building 
  2.27  materials exempt under section 297A.71, subdivision 12; and 
  2.28     (7) building materials, supplies, machinery, and equipment 
  2.29  for a maintenance facility exempt under section 297A.71, 
  2.30  subdivision 23, or for a city hall exempt under section 297A.71, 
  2.31  subdivision 24. 
  2.32     Subd. 2.  [REFUND; ELIGIBLE PERSONS.] Upon application on 
  2.33  forms prescribed by the commissioner, a refund equal to the tax 
  2.34  paid on the gross receipts of the exempt items must be paid to 
  2.35  the applicant.  Only the following persons may apply for the 
  2.36  refund: 
  3.1      (1) for subdivision 1, clauses (1) to (3), the applicant 
  3.2   must be the purchaser; 
  3.3      (2) for subdivision 1, clause (4), the applicant must be 
  3.4   the governmental subdivision; 
  3.5      (3) for subdivision 1, clause (5), the applicant must be 
  3.6   the recipient of the benefits provided in United States Code, 
  3.7   title 38, chapter 21; and 
  3.8      (4) for subdivision 1, clause (6), the applicant must be 
  3.9   the owner of the homestead property; and 
  3.10     (5) for subdivision 1, clause (7), the applicant must be 
  3.11  the governmental subdivision. 
  3.12     Subd. 3.  [APPLICATION.] (a) The application must include 
  3.13  sufficient information to permit the commissioner to verify the 
  3.14  tax paid.  If the tax was paid by a contractor, subcontractor, 
  3.15  or builder, under subdivision 1, clause (4), (5), or (6), or 
  3.16  (7), the contractor, subcontractor, or builder must furnish to 
  3.17  the refund applicant a statement including the cost of the 
  3.18  exempt items and the taxes paid on the items unless otherwise 
  3.19  specifically provided by this subdivision.  The provisions of 
  3.20  sections 289A.40 and 289A.50 apply to refunds under this section.
  3.21     (b) An applicant may not file more than two applications 
  3.22  per calendar year for refunds for taxes paid on capital 
  3.23  equipment exempt under section 297A.68, subdivision 5.  
  3.24     Subd. 4.  [INTEREST.] Interest must be paid on the refund 
  3.25  at the rate in section 270.76 from the date the refund claim is 
  3.26  filed for taxes paid under subdivision 1, clauses (1) to 
  3.27  (3), and (5), and (7), and from 60 days after the date the 
  3.28  refund claim is filed with the commissioner for claims filed 
  3.29  under subdivision 1, clauses (4) and (6). 
  3.30     Subd. 5.  [APPROPRIATION.] The amount required to make the 
  3.31  refunds is annually appropriated to the commissioner. 
  3.32     <b>[EFFECTIVE DATE.]</b> This section is effective for sales after 
  3.33  April 30, 2001.