SF345

Purpose

• Establishes a sales tax exemption for purchases by a nonprofit bird preservation organization that are used in Minnesota to develop, preserve, restore, or maintain habitats for waterfowl, pheasants, or quail.

Who qualifies

• A nonprofit bird preservation organization is defined as a nonprofit whose primary purpose is to support the life cycle of waterfowl, pheasants, or quail through habitat-related activities in Minnesota and that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

What is exempt

• The exemption applies to sales of items purchased for use in Minnesota to develop, preserve, restore, or maintain habitats for waterfowl, pheasants, or quail.

What is not exempt (significant exclusions)

• Building construction or reconstruction materials purchased by a contractor or subcontractor under a lump-sum contract or similar contract with a guaranteed maximum price for use in constructing, altering, or repairing a building or facility used by the qualifying organization.
• Lodging (as defined in the statute).
• Prepared foods, candy, and soft drinks.
• Taxable cannabis products and alcoholic beverages.
• Leasing of a motor vehicle.

Significance / impact

• Creates a targeted sales tax exemption to support habitat-related work by qualified nonprofit bird organizations, while drawing clear boundaries on what types of purchases do not qualify (notably construction materials for facilities, lodging, food items, cannabis, alcohol, and vehicle leases).

Relevant terms

• waterfowl
• habitat
• pheasants
• quail
• nonprofit bird preservation organization
• 501(c)(3)
• exemption
• Minnesota
• Sales tax
• Minnesota Statutes 2024 section 297A70
• Subdivision 22
• building construction materials
• lump-sum contract
• guaranteed maximum price
• contractor
• subcontractor
• lodging
• prepared foods
• candy
• soft drinks
• taxable cannabis products
• alcoholic beverages
• leasing of a motor vehicle