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HF3107 (Legislative Session 94 (2025-2026))

Sales and use tax exemption for agriculture processing materials modified.

Related bill: SF2849

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify tax exemptions for materials used in constructing agriculture processing facilities in Minnesota. It aims to encourage investment in agricultural infrastructure by providing financial incentives.

Main Provisions

  • The bill amends an existing law by broadening the state sales and use tax exemption for building materials used in agriculture processing facilities.
  • To qualify for the exemption, the total capital investment in the processing facility must exceed $100,000,000.
  • It defines an "agriculture processing facility" as any land, buildings, structures, fixtures, and improvements used primarily for the processing of marketable products from agricultural crops. It specifically excludes livestock or livestock products (except for milk), poultry, poultry products, and wood products from this definition.
  • The exemption process requires the tax to be initially imposed and collected, with a subsequent refund provided through a specific legislative mechanism.

Significant Changes to Existing Law

  • The bill changes the criteria for the sales and use tax exemption by specifying that it applies only to facilities with a capital investment above a $100 million threshold.
  • It provides detailed definitions of what constitutes an agriculture processing facility and what is included or excluded in the materials and products processed.

Relevant Terms

  • Tax exemption
  • Agriculture processing facility
  • Building materials
  • Capital investment
  • Marketable products
  • Refund mechanism

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the sales and use tax exemption for agriculture processing materials under section 297A.71, subdivision 13.",
      "modified": [
        "Changes the thresholds and conditions under which building materials and supplies are exempt from sales tax."
      ]
    },
    "citation": "297A.71",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the imposition of tax under section 297A.62, subdivision 1, related to sales and use tax rates.",
      "modified": [
        "The rate under section 297A.62, subdivision 1, is applied before a refund is issued for agriculture processing materials."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill stipulates the refund process in the manner provided in section 297A.75.",
      "modified": [
        "Specifies the process by which taxes paid under 297A.62, subdivision 1, are refunded."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill uses the definition of agriculture processing facility referenced in section 469.1811.",
      "modified": [
        "Uses the definition provided in section 469.1811 to classify agriculture processing facilities eligible for tax exemption."
      ]
    },
    "citation": "469.1811",
    "subdivision": ""
  }
]

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