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SF1604 (Legislative Session 94 (2025-2026))

Farm fencing and equipment exemption provision

Related bill: HF969

AI Generated Summary

This Minnesota Senate bill (S.F. No. 1604) proposes an amendment to Minnesota Statutes 2024, section 297A.69, subdivision 4, to expand the sales and use tax exemption for certain agricultural materials and equipment.

Key Provisions:

  1. Existing Exemptions: The bill maintains exemptions for:

    • Farm machinery
    • Logging equipment (including commercial chain saws)
    • Containment fencing for farmed Cervidae (deer, elk, etc.)
    • Primary and backup generators used for farm production, aquaculture, or logging
    • Aquaculture production equipment

  2. Expanded Exemption: The bill adds fencing and related materials used for general agricultural production to be tax-exempt. Specifically, it includes:

    • Materials, supplies, and equipment for the construction, improvement, repair, or replacement of fencing.
    • Fencing must be directly and principally used in agricultural production of tangible goods intended for retail sale.

Impact:

  • Reduces tax costs for farmers by broadening fencing exemptions beyond just farmed Cervidae to all agricultural uses.
  • Supports farm infrastructure development by making fencing costs more affordable.
  • Encourages agricultural production by alleviating tax burdens on equipment necessary for livestock containment and crop protection.

This bill, if passed, would provide financial relief to Minnesota farmers and agricultural producers through expanded tax exemptions on fencing-related purchases.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes fencing materials and supplies used for agricultural production."
      ],
      "removed": [],
      "summary": "This bill amends the tax exemption criteria for farm machinery, equipment, and fencing under section 297A.69, subdivision 4.",
      "modified": [
        "Clarifies the exemption status of backup generator units for farm and aquacultural production."
      ]
    },
    "citation": "297A.69"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the definition of farmed Cervidae as found in section 35.153, subdivision 3, to clarify what qualifies for fencing exemptions.",
      "modified": []
    },
    "citation": "35.153"
  }
]

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