HF2679

Purpose of the Bill

The bill aims to provide tax relief to small rural ambulance services in Minnesota by exempting them from health care gross receipts taxes.

Main Provisions

• Tax Exemption: The bill introduces a new subdivision in Minnesota Statutes, section 295.52, which exempts small rural ambulance services from being subject to the health care gross receipts tax.
• Definition of Small Rural Ambulance Service: To qualify for this exemption, an ambulance service must:
  1. Operate from a base located outside the metropolitan counties as defined in certain sections of Minnesota law, and also outside the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
  2. Have annual gross revenues of $10 million or less.

Significant Changes to Existing Law

This bill amends the existing taxation statute by adding a specific provision that relieves small rural ambulance services from the burden of health care gross receipts taxes, which they were previously obligated to pay.

Relevant Terms

• Tax exemption
• Small rural ambulance services
• Health care gross receipts taxes
• Metropolitan counties
• Annual gross revenues