The proposed bill, H. F. No. authored by Swedzinski, Huot, Anderson P.H., Burkel, and Allen, focuses on taxation related to agricultural equipment in Minnesota. The bill seeks to amend existing statutes to exempt grain bins, related construction materials and supplies, and tractor tires from sales and use taxes. The specific changes are aimed at the Minnesota Statutes 2024, sections 297A.61 subdivision 12 and 297A.69 subdivision 4.

The key proposals in the bill include:

1. Definition of Farm Machinery: The bill defines farm machinery to encompass new or used machinery, equipment, implements, accessories, and contrivances used directly and principally in the agricultural production of tangible personal property intended for retail sale. This includes machinery for soil preparation, seeding, cultivation, barn cleaners, milking systems, grain dryers, feeding systems, and irrigation equipment. It specifies that these items qualify as farm machinery whether or not they are installed by the seller and become part of the real property.

2. Exclusions from Farm Machinery: Certain items are explicitly excluded from being classified as farm machinery, which includes repair or replacement parts, tools, shop equipment, grain bins, fencing material, communication equipment and other farm supplies, motor vehicles (taxed under a different chapter), snowmobiles, snow blowers, lawn mowers (unless used in sod production), garden tractors, tillers, and equipment used in the production of non-slaughter horses, furbearing animals, or research animals.

The bill, after its first reading, has been referred to the Committee on Taxes for further consideration. Its enactment would mean specific agricultural equipment and supplies used in farming would become tax-exempt, potentially reducing costs for farmers in Minnesota.