HF740 (Legislative Session 94 (2025-2026))
Sales and use tax exemption provided for nonprofit animal shelters.
AI Generated Summary
The legislative bill in question seeks to provide tax exemptions for nonprofit animal shelters in Minnesota. The proposed changes would exempt purchases made by animal shelters from sales and use taxes if those purchases directly support the shelter's primary activities of rescuing, sheltering, and finding homes for unwanted animals. However, this exemption would not cover items such as building materials for construction projects not used by the shelters, or the leasing of motor vehicles.
Additionally, the bill would make sales and adoptions of animals, along with sales of related supplies and equipment by the animal shelters, tax exempt. Fundraising events conducted by animal shelters would also be exempt from taxation, which includes sales of food and drinks at these events. However, there are limitations: if an animal shelter's fundraising events exceed 24 days per year, the gross receipts from these sales become taxable. Also, the exemption doesn't apply if the fundraising event is held on premises leased for between five and 30 days, and it does not apply to charges related to gambling activities at these events.
In summary, this bill aims to support nonprofit animal shelters by reducing their tax burdens on essential purchases and fundraising activities, though with certain limitations on the latter.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| February 19, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Presents a new tax exemption for animal shelters' purchases used directly in rescue and home-finding activities.",
"Defines 'animal shelter' for the purpose of the statute."
],
"removed": [],
"summary": "The bill amends section 297A.70 by adding a new subdivision that provides tax exemptions for nonprofit animal shelters.",
"modified": []
},
"citation": "297A.70"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References existing definition of 'lodging' under section 297A.61 for exclusion within new animal shelter tax exemptions.",
"modified": []
},
"citation": "297A.61"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Uses the existing definition of prepared food and snacks from section 297A.67 to outline exclusions in the tax exemption.",
"modified": []
},
"citation": "297A.67"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Uses the definition of a motor vehicle from section 297B.01 as a basis for exclusion in the new tax exemptions for animal shelters.",
"modified": []
},
"citation": "297B.01"
}
]