| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; sales and use; providing exemptions for nonprofit animal |
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| 3 | 3 | | 1.3 shelters; amending Minnesota Statutes 2024, section 297A.70, by adding a |
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| 4 | 4 | | 1.4 subdivision. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 297A.70, is amended by adding a subdivision |
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| 7 | 7 | | 1.7to read: |
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| 8 | 8 | | 1.8 Subd. 22.Animal shelters.(a) For purposes of this subdivision, the term "animal shelter" |
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| 9 | 9 | | 1.9means a nonprofit organization engaged in the business of rescuing, sheltering, and finding |
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| 10 | 10 | | 1.10homes for unwanted animals. |
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| 11 | 11 | | 1.11 (b) Purchases made by an animal shelter are exempt if the purchases are used directly |
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| 12 | 12 | | 1.12in the activities of rescuing, sheltering, and finding homes for unwanted animals. The |
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| 13 | 13 | | 1.13exemption under this paragraph does not apply to the following purchases: |
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| 14 | 14 | | 1.14 (1) building, construction, or reconstruction materials purchased by a contractor or a |
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| 15 | 15 | | 1.15subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed |
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| 16 | 16 | | 1.16maximum price covering both labor and materials for use in the construction, alteration, or |
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| 17 | 17 | | 1.17repair of a building or facility; |
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| 18 | 18 | | 1.18 (2) construction materials purchased by an animal shelter or their contractors to be used |
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| 19 | 19 | | 1.19in constructing buildings or facilities that will not be used principally by the tax-exempt |
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| 20 | 20 | | 1.20entities; |
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| 21 | 21 | | 1Section 1. |
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| 22 | 22 | | REVISOR EAP/VJ 25-0116912/18/24 |
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| 23 | 23 | | State of Minnesota |
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| 24 | 24 | | This Document can be made available |
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| 25 | 25 | | in alternative formats upon request |
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| 26 | 26 | | HOUSE OF REPRESENTATIVES |
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| 27 | 27 | | H. F. No. 199 |
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| 28 | 28 | | NINETY-FOURTH SESSION |
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| 29 | 29 | | Authored by Olson01/23/2025 |
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| 30 | 30 | | The bill was read for the first time and referred to the Committee on Taxes 2.1 (3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), |
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| 31 | 31 | | 2.2and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, |
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| 32 | 32 | | 2.3subdivision 2; and |
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| 33 | 33 | | 2.4 (4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11. |
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| 34 | 34 | | 2.5 (c) The sale or adoption of unwanted animals by an animal shelter and the sale of |
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| 35 | 35 | | 2.6associated animal supplies and equipment by an animal shelter are exempt. |
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| 36 | 36 | | 2.7 (d) Sales made by and events run by an animal shelter for fundraising purposes are |
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| 37 | 37 | | 2.8exempt. Exempt sales include the sale of prepared food, candy, and soft drinks at a |
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| 38 | 38 | | 2.9fundraising event. The exemption under this paragraph is subject to the following limits: |
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| 39 | 39 | | 2.10 (1) gross receipts from all fundraising sales are taxable if the total fundraising by the |
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| 40 | 40 | | 2.11animal shelter exceeds 24 days per year; |
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| 41 | 41 | | 2.12 (2) it does not apply to fundraising events conducted on premises leased for more than |
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| 42 | 42 | | 2.13five days but less than 30 days; and |
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| 43 | 43 | | 2.14 (3) it does not apply to admission charges for events involving bingo or other gambling |
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| 44 | 44 | | 2.15activities or to charges for use of amusement devices involving bingo or other gambling |
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| 45 | 45 | | 2.16activities. |
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| 46 | 46 | | 2.17 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 47 | 47 | | 2.1830, 2025. |
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| 48 | 48 | | 2Section 1. |
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| 49 | 49 | | REVISOR EAP/VJ 25-0116912/18/24 |
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