1.1 	A bill for an act
1.2 	relating to taxation; defining the term tax for
1.3 	purposes of Minnesota Statutes; amending Minnesota
1.4 	Statutes 2004, section 645.44, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 645.44, is
1.7 	amended by adding a subdivision to read:
1.8 		Subd. 19.Fee and tax. (a) "Tax" means any fee, charge,
1.9 	exaction, or assessment imposed by a governmental entity on an
1.10 	individual, person, entity, transaction, good, service, or other
1.11 	thing.  It excludes a price that an individual or entity chooses
1.12 	voluntarily to pay in return for receipt of goods or services
1.13 	provided by the governmental entity.  A government good or
1.14 	service does not include access to or the authority to engage in
1.15 	private market transactions with a nongovernmental party, such
1.16 	as licenses to engage in a trade, profession, or business or to
1.17 	improve private property.
1.18 	(b) For purposes of applying the laws of this state, a
1.19 	"fee," "charge," or other similar term that satisfies the
1.20 	functional requirements of paragraph (a) must be treated as a
1.21 	tax for all purposes, regardless of whether the statute or law
1.22 	names or describes it as a tax.  The provisions of this
1.23 	subdivision do not preempt or supersede limitations under law
1.24 	that apply to fees, charges, or assessments.
1.25 	
EFFECTIVE DATE. This section is effective the day
2.1 	following final enactment.