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SF3265 (Legislative Session 94 (2025-2026))

Sales and use tax exemption for data centers repeal

AI Generated Summary

Purpose of the Bill

The bill aims to change the existing taxation laws in Minnesota by repealing the tax exemptions currently applicable to data centers. By doing so, the bill seeks to increase state tax revenue by applying sales and use taxes to enterprise information technology equipment and computer software used in qualified data centers.

Main Provisions

  • Repealing Data Center Exemption: This bill repeals Minnesota Statutes 2024, section 297A.68, subdivision 42, which currently allows for tax exemptions on enterprise information technology equipment and computer software used in qualified data centers.
  • Amending Tax Collection on Exempt Items: The bill amends several subdivisions under section 297A.75, requiring that the tax on the gross receipts from sales, including items previously exempt, be imposed and collected as if they were taxable.

Significant Changes

  • Removal of Data Center Tax Exemption: The significant change proposed by this bill is the elimination of the tax exemption for data centers, effectively making technology equipment and software used in these centers subject to the standard sales and use tax.

Relevant Terms

data center, tax exemption, sales tax, use tax, information technology equipment, computer software, Minnesota taxation laws.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toTaxes
April 06, 2025SenateFloorActionAuthor stricken

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies tax collection on certain exempt items under section 297A.75, subdivision 1.",
      "modified": [
        "The section now requires tax to be collected as if the sale were taxable for multiple exemptions previously listed."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Exemption for equipment and materials used for the generation, transmission, and distribution of electrical energy and an aerial camera package."
      ],
      "summary": "The bill removes the exemption for certain equipment and materials under section 297A.68, subdivision 37.",
      "modified": []
    },
    "citation": "297A.68",
    "subdivision": "subdivision 37"
  }
]

Sponsors