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SF2849 (Legislative Session 94 (2025-2026))

Exemption modification for agriculture processing materials

Related bill: HF3107

AI Generated Summary

Purpose of the Bill

The legislation aims to adjust the tax exemption conditions related to sales and use taxes for materials used in building agriculture processing facilities in Minnesota. It seeks to provide tax relief for large-scale agricultural projects by modifying existing exemptions to stimulate growth and investments in this sector.

Main Provisions

  • The bill updates the provisions under Minnesota Statutes 2024 section 297A.71, subdivision 13.
  • It specifies that building materials and supplies purchased for constructing agricultural processing facilities may be exempt from sales and use taxes if the total investment in the facility exceeds $100 million.
  • It elaborates on what qualifies as an "agriculture processing facility," including land, buildings, structures, fixtures, and improvements dedicated to processing or producing products from agricultural crops. This includes waste and residues but excludes livestock-related products, except for milk and poultry products.

Significant Changes to Existing Law

  • The bill proposes a monetary threshold for capital investments in agricultural processing facilities ($100 million) as a condition for the tax exemption, thereby potentially limiting the scope to larger projects.
  • This modification aims to attract significant agricultural investments by offsetting the tax burden for large-scale projects that enhance Minnesota's agricultural processing capacity.

Relevant Terms

  • Agriculture processing facility
  • Tax exemption
  • Sales and use tax
  • Building materials and supplies
  • Capital investment

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new provision specifies the types of processing facilities eligible for exemption."
      ],
      "removed": [],
      "summary": "This bill modifies the sales and use tax exemption for agriculture processing materials under section 297A.71.",
      "modified": [
        "Clarifies the criteria for what constitutes an agriculture processing facility."
      ]
    },
    "citation": "297A.71"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to the general sales tax rate applied to agriculture processing materials under section 297A.62.",
      "modified": [
        "Specifies that tax must be imposed at the rate in section 297A.62 before being refunded."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to the refund process for taxes paid on agriculture processing materials under section 297A.75.",
      "modified": [
        "Clarifies the process for refunding taxes as per section 297A.75."
      ]
    },
    "citation": "297A.75"
  }
]

Sponsors