1.1.................... moves to amend H.F. No. 1696 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to
1.4read:
1.5    Subd. 4. Retail sale. (a) A "retail sale" means any sale, lease, or rental for any
1.6purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
1.7course of business as defined in subdivision 21.
1.8    (b) A sale of property used by the owner only by leasing it to others or by holding it
1.9in an effort to lease it, and put to no use by the owner other than resale after the lease or
1.10effort to lease, is a sale of property for resale.
1.11    (c) A sale of master computer software that is purchased and used to make copies for
1.12sale or lease is a sale of property for resale.
1.13    (d) A sale of building materials, supplies, and equipment to owners, contractors,
1.14subcontractors, or builders for the erection of buildings or the alteration, repair, or
1.15improvement of real property is a retail sale in whatever quantity sold, whether the sale is
1.16for purposes of resale in the form of real property or otherwise.
1.17    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
1.18for installation of the floor covering is a retail sale and not a sale for resale since a sale of
1.19floor covering which includes installation is a contract for the improvement of real property.
1.20    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
1.21for installation of the items is a retail sale and not a sale for resale since a sale of
1.22shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
1.23the improvement of real property.
1.24    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and
1.25is not considered a sale of property for resale.
1.26    (h) A sale of tangible personal property utilized or employed in the furnishing or
1.27providing of services under subdivision 3, paragraph (g), clause (1), including, but not
2.1limited to, property given as promotional items, is a retail sale and is not considered a
2.2sale of property for resale.
2.3    (i) A sale of tangible personal property used in conducting lawful gambling under
2.4chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property
2.5given as promotional items, is a retail sale and is not considered a sale of property for resale.
2.6    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or
2.7dispense goods or services, including, but not limited to, coin-operated devices, is a retail
2.8sale and is not considered a sale of property for resale.
2.9    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
2.10payment becomes due under the terms of the agreement or the trade practices of the
2.11lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01,
2.12subdivision 11 , but excluding vehicles with a manufacturer's gross vehicle weight rating
2.13greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
2.14the lease is executed.
2.15    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
2.16title or possession of the tangible personal property.
2.17    (m) A sale of a bundled transaction in which one or more of the products included
2.18in the bundle is a taxable product is a retail sale, except that if one of the products
2.19is a telecommunication service, ancillary service, Internet access, or audio or video
2.20programming service, and the seller has maintained books and records identifying through
2.21reasonable and verifiable standards the portions of the price that are attributable to the
2.22distinct and separately identifiable products, then the products are not considered part of a
2.23bundled transaction. For purposes of this paragraph:
2.24    (1) the books and records maintained by the seller must be maintained in the regular
2.25course of business, and do not include books and records created and maintained by the
2.26seller primarily for tax purposes;
2.27    (2) books and records maintained in the regular course of business include, but are
2.28not limited to, financial statements, general ledgers, invoicing and billing systems and
2.29reports, and reports for regulatory tariffs and other regulatory matters; and
2.30    (3) books and records are maintained primarily for tax purposes when the books
2.31and records identify taxable and nontaxable portions of the price, but the seller maintains
2.32other books and records that identify different prices attributable to the distinct products
2.33included in the same bundled transaction.
2.34    (n) A payment made to an cooperative electric association or public utility as a
2.35contribution in aid of construction is a contract for improvement to real property and
2.36is not a retail sale.
3.1EFFECTIVE DATE.This section is effective for sales and purchases made after
3.2June 30, 2013."
3.3Amend the title accordingly