1.1                          A bill for an act
  1.2             relating to taxes; sales and use; exempting certain 
  1.3             sales of pets from sales taxes; amending Minnesota 
  1.4             Statutes 2000, section 297A.70, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 297A.70, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 17.  [SALES BY NONPROFIT ANIMAL SHELTERS.] Sale of an 
  1.10  animal by an exempt organization under section 501(c) of the 
  1.11  Internal Revenue Code is exempt provided that the organization's 
  1.12  main purpose is animal rescue and the price of the animal does 
  1.13  not exceed the reasonable costs incurred in caring for the 
  1.14  animal prior to its sale.  Reasonable costs include food, 
  1.15  shelter, advertising for placement, and veterinary costs, 
  1.16  including costs for spaying or neutering. 
  1.17     <b>[EFFECTIVE DATE.]</b> This section is effective for sales made 
  1.18  after June 30, 2001.