1.1                          A bill for an act 
  1.2             relating to taxation; providing an exemption from 
  1.3             sales and use taxes for construction materials for an 
  1.4             alfalfa processing facility; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 297A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [297A.2574] [ALFALFA PROCESSING FACILITIES 
  1.8   CONSTRUCTION MATERIALS; EXEMPTION.] 
  1.9      Purchases of construction materials and supplies are exempt 
  1.10  from the sales and use taxes imposed under this chapter, 
  1.11  regardless of whether purchased by the owner or a contractor, 
  1.12  subcontractor, or builder, if: 
  1.13     (1) the materials and supplies are used or consumed in 
  1.14  constructing a facility which either (i) develops market-value 
  1.15  agricultural products made from alfalfa leaf material, or (ii) 
  1.16  produces biomass energy fuel for electricity from alfalfa stems 
  1.17  in accordance with the biomass mandate imposed under section 
  1.18  216B.2424; and 
  1.19     (2) the total capital investment made in the value-added 
  1.20  agricultural products and biomass electric generation facilities 
  1.21  is at least $50,000,000. 
  1.22     The tax shall be imposed and collected as if the rate under 
  1.23  section 297A.02, subdivision 1, applied, and then refunded in 
  1.24  the manner provided in section 297A.15, subdivision 5. 
  1.25     Sec. 2.  [EFFECTIVE DATE.] 
  2.1      Section 1 is effective for sales after June 30, 1997.