1.1                          A bill for an act 
  1.2             relating to taxation; requiring certification of 
  1.3             nonprofit sponsorship of events as a qualification for 
  1.4             sales tax exemption; providing for use of the proceeds 
  1.5             of the reduced tax expenditure for grants to arts 
  1.6             organizations; amending Minnesota Statutes 1994, 
  1.7             sections 297A.25, subdivision 24; and 297A.44, 
  1.8             subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 297A.25, 
  1.11  subdivision 24, is amended to read: 
  1.12     Subd. 24.  [NONPROFIT TICKETS OR ADMISSIONS.] The gross 
  1.13  receipts from the sale or use of tickets or admissions to the 
  1.14  premises of or events sponsored by an association, corporation 
  1.15  or other group of persons which provides an opportunity for 
  1.16  citizens of the state to participate in the creation, 
  1.17  performance or appreciation of the arts and which either (1) 
  1.18  qualifies as a tax-exempt organization within the meaning of 
  1.19  Minnesota Statutes 1980, section 290.05, subdivision 1, clause 
  1.20  (i), or (2) is a municipal board that promotes cultural and arts 
  1.21  activities, are exempt.  The exemption provided with respect to 
  1.22  a municipal board applies only to tickets and admissions to 
  1.23  events sponsored by the board.  To qualify for the exemption 
  1.24  provided in this subdivision for tickets or admissions to any 
  1.25  premises or event, a tax-exempt organization must provide 
  1.26  information required by the commissioner verifying its interest 
  1.27  in the premises or its sponsorship of the event.  If the 
  2.1   organization is affiliated with an individual or for-profit 
  2.2   entity which is a promoter for the purpose of producing the 
  2.3   event or operating the premises, tickets or admissions to the 
  2.4   event or the premises qualify for the exemption only if the 
  2.5   commissioner determines that the agreement between the 
  2.6   organization and the promoter provides that the organization 
  2.7   bears at least some of the risk of loss from conducting the 
  2.8   event or operating the premises. 
  2.9      Sec. 2.  Minnesota Statutes 1994, section 297A.44, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  (a) Except as provided in paragraphs (b), 
  2.12  (c), and (d), and (e), all revenues, including interest and 
  2.13  penalties, derived from the excise and use taxes imposed by 
  2.14  sections 297A.01 to 297A.44 shall be deposited by the 
  2.15  commissioner in the state treasury and credited to the general 
  2.16  fund.  
  2.17     (b) All excise and use taxes derived from sales and use of 
  2.18  property and services purchased for the construction and 
  2.19  operation of an agricultural resource project, from and after 
  2.20  the date on which a conditional commitment for a loan guaranty 
  2.21  for the project is made pursuant to section 41A.04, subdivision 
  2.22  3, shall be deposited in the Minnesota agricultural and economic 
  2.23  account in the special revenue fund.  The commissioner of 
  2.24  finance shall certify to the commissioner the date on which the 
  2.25  project received the conditional commitment.  The amount 
  2.26  deposited in the loan guaranty account shall be reduced by any 
  2.27  refunds and by the costs incurred by the department of revenue 
  2.28  to administer and enforce the assessment and collection of the 
  2.29  taxes.  
  2.30     (c) All revenues, including interest and penalties, derived 
  2.31  from the excise and use taxes imposed on sales and purchases 
  2.32  included in section 297A.01, subdivision 3, paragraphs (d) and 
  2.33  (l), clauses (1) and (2), must be deposited by the commissioner 
  2.34  in the state treasury, and credited as follows: 
  2.35     (1) first to the general obligation special tax bond debt 
  2.36  service account in each fiscal year the amount required by 
  3.1   section 16A.661, subdivision 3, paragraph (b); and 
  3.2      (2) after the requirements of clause (1) have been met, the 
  3.3   balance must be credited to the general fund. 
  3.4      (d) The revenues, including interest and penalties, derived 
  3.5   from the taxes imposed on solid waste collection services as 
  3.6   described in section 297A.45, except for the tax imposed under 
  3.7   section 297A.021, shall be deposited by the commissioner in the 
  3.8   state treasury and credited to the general fund to be used for 
  3.9   funding solid waste reduction and recycling programs. 
  3.10     (e) The commissioner shall annually estimate the amount of 
  3.11  the tax expenditure reduction attributable to section 1.  That 
  3.12  amount, when deposited in the general fund, must be credited to 
  3.13  the state arts account to be used to provide grants to arts 
  3.14  organizations as provided in section 129D.06. 
  3.15     Sec. 3.  [EFFECTIVE DATE.] 
  3.16     Section 1 is effective for sales of admissions to events 
  3.17  occurring after December 31, 1995.