Minnesota 2025-2026 Regular Session

Minnesota House Bill HF978

Introduced
2/17/25  

Caption

Sales and use tax exemption for grain bins and related construction materials and supplies and tractor tires provided.

Impact

If enacted, HF978 would significantly alter the existing state tax code by adding exemptions that would lessen the financial burdens on farmers and agricultural businesses. The amendments will exempt grain bins, widely used for storing grains perishable in nature, alongside tractor tires which are also critical for farm machinery. Such financial relief can lead to increased investment in farm infrastructure, potentially boosting overall agricultural productivity and economic viability in Minnesota. The effective date of this change is set for June 30, 2025, allowing for a transitional period for affected stakeholders.

Summary

House File 978 (HF978) proposes a sales and use tax exemption in the state of Minnesota for grain bins, related construction materials and supplies, as well as tractor tires. The bill aims to amend sections of the Minnesota Statutes concerning the taxation framework for these specific agricultural resources. By granting this exemption, the bill seeks to support the agricultural sector by reducing costs associated with farming infrastructure and equipment. The bill reflects a growing recognition of the importance of local agriculture in the state's economy and aims to facilitate more affordable farming practices.

Contention

During discussions surrounding HF978, notable points of contention included concerns regarding the potential impact of tax exemptions on state revenue. Some lawmakers questioned whether the loss in tax revenue from these exemptions could hinder funding for other important state priorities such as education or healthcare. Proponents of the bill argue that the long-term benefits of helping farmers outweigh these concerns by ultimately bolstering the local economy. Additionally, there were discussions on the fairness of offering such tax breaks and whether more exemptions might follow, which could complicate the tax system further.

Companion Bills

MN SF1541

Similar To Grain bins and related construction material, supplies and tractor tires sales and use tax exemption

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