MN HF2532

Modifies the sales tax exemption for local government purchases by replacing a broad definition with a specific list: goods or services purchased as inputs to a liquor store, gas and electric utility, golf course, marina, health and fitness center, campground, cafe, or laundromat are not exempt.

Expands the definition of "local governments" to include their instrumentalities, special districts as defined under section 6.465, and special districts organized under joint powers agreements under section 471.59.

Establishes a temporary refund mechanism allowing local governments that paid sales tax on newly-exempted items between January 1, 2014 and June 30, 2014 to apply directly to the Commissioner of Revenue for refunds, with applications due by January 1, 2015.

Makes the exemption changes effective retroactively from January 1, 2014 for all sales and purchases on or after that date.

Appropriates money to the Commissioner of Revenue to fund the refunds, with interest paid at the rate specified in Minnesota Statutes section 270C.405 beginning 90 days after the refund claim is filed.