This legislative bill, H.F. No. 825, aims to alter taxation related to credit card transaction fees for specific businesses, making these fees temporarily exempt from sales and use tax. Furthermore, it includes provision for the appropriation of funds to support the reimbursement of businesses for previously paid taxes on these now-exempt fees. Here’s a simple breakdown of the main points of the bill:

1. Temporary Sales Tax Exemption for Credit Card Transaction Fees:

   • Businesses that fall within specific criteria can benefit from a sales tax exemption on credit card transaction fees.
   • The exemption period is defined as from after June 30, 2020, to before January 1, 2024.

2. Criteria for Eligibility:

   • The business must be located in a county with a population between 36,000 and 37,000 as per the 2020 federal census.
   • The business must be licensed as a brewer under the relevant Minnesota statutes and hold a retail on-sale license.

3. Tax Refunds:

   • Businesses that have already paid sales and use taxes on these now-exempt transaction fees can apply for a refund.
   • These refunds are not to be issued until after June 30, 2025.
   • The process and requirements for applying for a refund are to be determined by the commissioner of revenue.

4. Funding:

   • The funds needed to cover these refunds will be appropriated from the general fund to the commissioner of revenue.

In summary, H.F. No. 825 provides a specific group of businesses with a financial relief from certain sales taxes previously charged on credit card transaction fees, along with a plan for refunding the taxes already paid within a specified time frame.