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Taxes

THIRTIETH MEETING

2007-2008 Regular Session - Thursday, March 29, 2007

STATE OF MINNESOTA THIRTIETH MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION

TAX COMMITTEE

MINUTES


Representative Ann Lenczewski, Chair of the Committee, called the meeting to order at 12:34 P.M. on Thursday, March 29, 2007, in the Basement Hearing Room of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

LENCZEWSKI, Ann (Chair)
WOLLSCHLAGER, Sandy (Vice-Chair)
ATKINS, Joe
BROD, Laura
CARLSON, Lyndon
DAVNIE, Jim
DELAFOREST, Chris
DEMMER, Randy
DILL, David
ERHARDT, Ron
HILSTROM, Debra
JAROS, Mike
KOENEN, Lyle
KOHLS, Paul
LANNING, Morrie
LESCH, John
LIEBLING, Tina
MARQUART, Paul
MULLERY, Joe
PAULSEN, Erik
RUKAVINA, Tom
SIMPSON, Dean
SOLBERG, Loren
TILLBERRY, Tom
ZELLERS, Kurt

Members excused:

THAO, Cy

A quorum was not present.

HF0830 Nornes JOBZ tax benefits extended.

Chuck Johnson (EDA Director, City of Perham), Harold Stanislawski (Executive Director, Fergus Falls Economic Improvement Commission), Richard Anderson (business owner, Fergus Falls) and Brian McDaniel (Director of Government Affairs, Department of Employment and Economic Development) testified on HF0830.

A quorum was present.

Representative Simpson moved HF0830 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0830 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1229 Demmer Installation charges excluded from the sales tax.

Representative Demmer moved HF1229 be laid over for possible inclusion in the Omnibus Tax Bill.

HF1229 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1204 Davnie Low-income housing sales tax exemption extended to limited partnerships in which the sole general partner is a nonprofit corporation.

Representative Davnie moved HF1204 be laid over for possible inclusion in the Omnibus Tax Bill.

Alan Arthur (President, Central Community Housing Trust) testified on HF1204.

Representative Davnie moved to amend HF1204 as follows:
Page 1, line 18, after the word "sole" insert "or managing". THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

HF1204, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Lenczewski moved HF0123 - Slawik be laid over for possible inclusion in the Omnibus Tax Bill.

HF0123 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Lenczewski moved HF1264 - Eastlund be laid over for possible inclusion in the Omnibus Tax Bill.

HF1264 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Lenczewski moved HF0020 - Thissen be laid over for possible inclusion in the Omnibus Tax Bill.

HF0020 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1501 Welti Residential heating fuels sales tax exemption expanded to include all fuels except natural gas and electricity.

Representative Marquart moved HF1501 be laid over for possible inclusion in the Omnibus Tax Bill.

Sue Kruger (Owner, Eagle Bio-Fuels) testified on HF1501.

HF1501 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1613 Peterson Biomass fuel stoves sales tax exemption provided, and biomass-fueled electric generation facility construction sales tax exemption provided.

Representative Jaros moved HF1613 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Jaros moved to amend HF1613 as follows:
Page 1, delete section 2. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

HF1613, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF1516 Swails Washington County courts facility construction materials and equipment sales tax exemption provided, and obsolete provision removed.

Representative Tillberry moved HF1516 be laid over for possible inclusion in the Omnibus Tax Bill.

Gary Kriesel (Chair, Washington County Board of Commissioners) and Don Theisem (Washington County Engineer) testified on HF1516.

HF1516 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1784 Faust Pine County Judicial Center construction materials sales tax exemption provided.

Representative Solberg moved HF1784 be laid over for possible inclusion in the Omnibus Tax Bill.

Roger Nelson (Pine County Commissioner) and Doug Carlson (Pine County Commissioner) testified on HF1784.

Representative Solberg moved to amend HF1784 as follows:
Page 1, line 9, after "a" insert “up to $3,833,000 in". THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

HF1784, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF2060 Brynaert Blue Earth County courts facility construction materials sales tax exemption provided.

Representative Lenczewski moved HF2060 be laid over for possible inclusion in the Omnibus Tax Bill.

Dennis McCoy (Blue Earth County Administrator) testified on HF2060.

HF2060 was laid over for possible inclusion in the Omnibus Tax Bill.

HF2208 Slocum Richfield city hall and maintenance facility construction materials sales tax exemption provided.

Representative Atkins moved HF2208 be laid over for possible inclusion in the Omnibus Tax Bill.

HF2208 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0928 Dill Shooting range targets sales specified as a sale of property for resale.

Representative Dill moved HF0928 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0928 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1439 Atkins Contraband cigarettes disposition provided.

Representative Atkins moved HF1439 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Atkins moved the A07-0167 amendment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

HF1439, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

The committee recessed at 2:06 P.M.

The committee reconvened in room 200 of the State Office Building at 6:01 P.M.

Representative Wollschlager, Vice-Chair of the Committee, assumed the gavel.

HF1950 Ruud Capital equipment sales tax exemption modified.

HF1791 Heidgerken Capital equipment sales tax exemption modified.

Representative Marquart moved HF1950 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Brod moved HF1791 be laid over for possible inclusion in the Omnibus Tax Bill.

John Beste (Vice President, Famo Feeds) testified on HF1791.

HF1950 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1791 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1752 Erickson Sherburne County public works building construction materials sales tax exemption provided.

Representative Tillberry moved HF1752 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Tillberry moved the A07-0590 amendment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

John Menter (Sherburne County Public Works Director) testified on HF1752.

HF1752, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF2131 Urdahl Meeker County electrical cooperative sales tax exemption restriction eliminated.

Representative Solberg moved HF2131 be laid over for possible inclusion in the Omnibus Tax Bill.

Tim Mergen (General Manager, Meerk Co-op Light and Power Association) testified on HF2131.

HF2131 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0677 Brod JOBZ treatment for biodiesel fuel plants time period extended.

Representative Brod moved HF0677 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0677 was laid over for possible inclusion in the Omnibus Tax Bill.

HF2329 Howes Homestead local option disaster abatement provisions modified.

Representative Koenen moved HF2329 be laid over for possible inclusion in the Omnibus Tax Bill.

HF2329 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Marquart assumed the gavel at 6:30 P.M.

HF1172 Wollschlager Revenue department debt collection time limits, collection costs, and referrals provisions modified.

Representative Wollschlager moved HF1172 be laid over for possible inclusion in the Omnibus Tax Bill.

Wayne Sather (Department of Revenue attorney) testified on HF1172.

HF1172 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Wollschlager assumed the gavel at 6:37 P.M.

Joel Michael (House Research) presented an informational overview on tobacco taxes.

HF1937 Solberg Cigarette and tobacco products tax stamps distributor discount provided.

Representative Solberg moved HF1937 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Solberg moved the A07-0347 amendment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Thomas Briant (Executive Director, Minnesota Wholesale Marketers Association) and Ross Amundson (Amundson Cigar and Candy Company) testified on HF1937.

HF1937, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF2311 Davnie Tobacco tax and tobacco health impact fee computation modified for “moist snuff."

Representative Davnie moved HF2311 be laid over for possible inclusion in the Omnibus Tax Bill.

Monte Williams (consultant, US Smokeless Tobacco), Robert Maples (Senior Advisor, Swisher International Incorporated), Stan Arnold (Senior Tax Policy Advisor, Reynolds American) and Corinne Ertz (Government Relations Director, American Cancer Society) testified on HF2311.

HF2311 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Zellers moved to approve the minutes of March 28, 2007. THE MOTION PREVAILED - THE MINUTES WERE APPROVED.

The committee adjourned at 7:34 P.M.

Representative Ann Lenczewski, Chair


Jamie Becker-Finn, Committee Legislative Assistant
More Info On This Meeting..

HF1229 (Demmer) Installation charges excluded from the sales tax.
HF1204 (Davnie) Low-income housing sales tax exemption extended to limited partnerships in which the sole general partner is a nonprofit corporation
HF1501 (Welti) Residential heating fuels sales tax exemption expanded to include all fuels except natural gas and electricity.
HF1613 (A.Peterson) Biomass fuel stoves sales tax exemption provided, and biomass-fueled electric generation facility construction sales tax exemption extended..
HF1950 (Ruud) Capital equipment sales tax exemption modified.
HF1516 (Swails) Washington County courts facility construction materials and equipment sales tax exemption provided, and obsolete provision removed.
HF1784 (Faust) Pine County Judicial Center construction materials sales tax exemption provided.
HF2060 (Brynaert) Blue Earth County courts facility construction materials sales tax exemption provided.
HF928 (Dill) Shooting range targets sales specified as a sale of property for resale.
HF2208 (Slocum) Richfield city hall and maintenance facility construction materials sales tax exemption provided.
HF2131 (Urdahl) Meeker County electrical cooperative sales tax exemption restriction eliminated.
HF1752 (Erickson) Sherburne County public works building construction materials sales tax exemption provided.
HF1791 (Heidgerken) Capital equipment sales tax exemption modified. ** bill added **

House Research Overview of Tobacco Taxes
HF1439 (Atkins) Contraband cigarettes disposition provided.
HF1937 (Solberg) Cigarette and tobacco products tax stamps distributor discount provided.
HF2311 (Davnie) Tobacco tax and tobacco health impact fee computation modified for "moist snuff".'

HF677 (Brod) JOBZ treatment for biodiesel fuel plants time period extended.
HF830 (Nornes) Job opportunity building zone tax benefits extended.
HF2329 (Howes) Homestead local option disaster abatement provisions modified.
HF1172 (Wollschlager) Revenue department debt collection time limits, collection costs, and referrals provisions modified.

Bills removed
HF2362 (Lenczewski)
HF1737 (Atkins)