This legislative bill proposes a tax exemption for nonprofit animal shelters in Minnesota. Here's a simplified breakdown:

1. Definition of Animal Shelter: The bill defines animal shelters as nonprofit organizations that help rescue, shelter, and find homes for unwanted animals.

2. Tax Exemptions for Purchases: These nonprofits will not have to pay sales tax on items directly used for rescuing, sheltering, and placing animals in homes. However, certain purchases are excluded from this tax exemption:

   • Construction or reconstruction materials purchased under certain types of contracts for building work.
   • Construction materials for buildings not primarily used by the tax-exempt entity.
   • Lodging and food items like prepared food, candy, soft drinks, and alcoholic beverages.
   • Leased motor vehicles.

3. Exemptions on Sales and Fundraising Activities:

   • Sales or adoptions of animals by the shelter are tax-exempt.
   • Animal supplies and equipment sold by the shelter are tax-exempt.
   • Fundraising sales (including food sold at these events) are exempt from tax, with some limitations:
     • If the shelter conducts fundraising for more than 24 days per year, all receipts from these activities become taxable.
     • The exemption does not apply to long-term leased premises for more than five days but less than 30 days.
     • No exemption for admission charges or sales involving gambling activities.

This bill aims to support animal shelters in their mission by easing the financial burden associated with sales taxes, although certain limits and exclusions apply to maintain accountability and proper use of the tax-exempt status.