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S.F. No. 1860 - Modification of local government sales tax exemption (as proposed to be amended by the A-2)
 
Author: Senator Ann H. Rest
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 9, 2014



 

Under current law, “goods and services generally provided by a private business” are specified but listed in an "including, but not limited to" clause. The language proposed in this bill provides an exclusive list so that inputs to only the goods and services named in the list would be excluded from eligibility for the sales tax exemption.

Modifies the definition of “local governments.”  In the 2013 Omnibus Tax Bill, the sales tax exemption for qualifying purchases by towns was expanded to include cities and counties.  “Local governments” was defined as cities, counties, and towns.  This bill expands the definition of “local governments” to include instrumentalities of cities, counties, and towns, special districts, joint powers boards, or organizations created under joint powers authority.

The reference to the Metropolitan Council is removed. This is a conforming change, as the Metropolitan Council would qualify under the proposed change to the definition of "local governments."

 Effective for sales and purchases made after June 30, 2014.

 
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