Delivery of aggregate materials excluded from the retail delivery fee.
Impact
The proposed changes in HF1774 could significantly impact the cost structure for businesses engaged in delivering aggregate materials, making it more financially viable for them to operate without the burden of additional retail delivery fees. This adjustment is expected to promote growth and competition within the construction and landscaping sectors by lowering operational costs for suppliers of aggregate materials, which include sand, gravel, and crushed stone.
Summary
House File 1774 addresses specific amendments to the Minnesota Statutes regarding transportation and retail delivery fees. The bill seeks to exclude the delivery of aggregate materials from the current retail delivery fee, which is applicable to various retail transactions. By amending section 168E.05 of the Minnesota Statutes, the bill signifies an effort to adjust the financial obligations related to the transportation of aggregate materials, creating clearer regulations for its delivery and potentially benefiting businesses in the aggregate industry.
Contention
Notable points of contention surrounding HF1774 may arise from stakeholders who advocate for maintaining the existing retail delivery fee structure, arguing that such fees are necessary for funding transportation infrastructure and addressing the broader impacts of increased delivery services. Opponents of the bill may express concern that the removal of these fees could lead to a loss of revenue for the state, potentially affecting public services funded by these fees.
Last_action
The bill was introduced and referred to the Committee on Transportation Finance and Policy on March 3, 2025, with an effective date set for July 1, 2025.
Regional transportation sales and use tax repealed, metropolitan region sales and use tax repealed, local affordable housing aid repealed, retail delivery fee repealed, and use of amounts in repealed accounts provided.
Sales and use tax exemption removed for detachable units separately sold for landscaping equipment, land clearing services removed from definition of sale and purchase, and exemption modified for materials consumed in agricultural production.
Sales and use tax provisions modified, land clearing services removed from definition of sale and purchase, and tax exemption for detachable units separately sold for landscaping equipment removed.
Detachable units separately sold for landscaping equipment sales and use tax exemption removal; land clearing services removal from the definition of sale and purchase; materials consumed in agricultural production sales and use tax exemption modification