| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; sales and use; providing an exemption for grain bins and related |
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| 3 | 3 | | 1.3 construction materials and supplies and tractor tires; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, sections 297A.61, subdivision 12; 297A.69, subdivision 4. |
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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.61, subdivision 12, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 12.Farm machinery.(a) "Farm machinery" means new or used machinery, |
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| 8 | 8 | | 1.8equipment, implements, accessories, and contrivances used directly and principally in |
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| 9 | 9 | | 1.9agricultural production of tangible personal property intended to be sold ultimately at retail |
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| 10 | 10 | | 1.10including, but not limited to: |
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| 11 | 11 | | 1.11 (1) machinery for the preparation, seeding, or cultivation of soil for growing agricultural |
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| 12 | 12 | | 1.12crops; |
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| 13 | 13 | | 1.13 (2) barn cleaners, milking systems, grain dryers, feeding systems including stationary |
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| 14 | 14 | | 1.14feed bunks, and similar installations, whether or not the equipment is installed by the seller |
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| 15 | 15 | | 1.15and becomes part of the real property; and |
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| 16 | 16 | | 1.16 (3) irrigation equipment sold for exclusively agricultural use, including pumps, pipe |
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| 17 | 17 | | 1.17fittings, valves, sprinklers, and other equipment necessary to the operation of an irrigation |
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| 18 | 18 | | 1.18system when sold as part of an irrigation system, whether or not the equipment is installed |
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| 19 | 19 | | 1.19by the seller and becomes part of the real property. |
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| 20 | 20 | | 1.20 (b) Farm machinery does not include: |
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| 21 | 21 | | 1.21 (1) repair or replacement parts; |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | REVISOR EAP/NS 25-0228401/27/25 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 978 |
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| 29 | 29 | | NINETY-FOURTH SESSION |
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| 30 | 30 | | Authored by Swedzinski; Huot; Anderson, P. H.; Burkel and Allen02/17/2025 |
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| 31 | 31 | | The bill was read for the first time and referred to the Committee on Taxes 2.1 (2) tools, shop equipment, grain bins, fencing material, communication equipment, and |
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| 32 | 32 | | 2.2other farm supplies; |
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| 33 | 33 | | 2.3 (3) motor vehicles taxed under chapter 297B; |
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| 34 | 34 | | 2.4 (4) snowmobiles or snow blowers; |
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| 35 | 35 | | 2.5 (5) lawn mowers except those used in the production of sod for sale, or garden-type |
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| 36 | 36 | | 2.6tractors or garden tillers; or |
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| 37 | 37 | | 2.7 (6) machinery, equipment, implements, accessories, and contrivances used directly in |
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| 38 | 38 | | 2.8the production of horses not raised for slaughter, fur-bearing animals, or research animals. |
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| 39 | 39 | | 2.9 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 40 | 40 | | 2.1030, 2025. |
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| 41 | 41 | | 2.11 Sec. 2. Minnesota Statutes 2024, section 297A.69, subdivision 4, is amended to read: |
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| 42 | 42 | | 2.12 Subd. 4.Machinery, equipment, and fencing.(a) The following machinery, equipment, |
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| 43 | 43 | | 2.13and fencing is exempt: |
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| 44 | 44 | | 2.14 (1) farm machinery; |
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| 45 | 45 | | 2.15 (2) logging equipment, including chain saws used for commercial logging; |
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| 46 | 46 | | 2.16 (3) fencing used for the containment of farmed Cervidae, as defined in section 35.153, |
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| 47 | 47 | | 2.17subdivision 3; |
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| 48 | 48 | | 2.18 (4) primary and backup generator units used to generate electricity for the purpose of |
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| 49 | 49 | | 2.19operating farm machinery, aquacultural production equipment, or logging equipment, or |
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| 50 | 50 | | 2.20providing light or space heating necessary for the production of livestock, dairy animals, |
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| 51 | 51 | | 2.21dairy products, or poultry and poultry products; and |
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| 52 | 52 | | 2.22 (5) aquaculture production equipment.; |
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| 53 | 53 | | 2.23 (6) grain bins; and |
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| 54 | 54 | | 2.24 (7) tractor tires. |
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| 55 | 55 | | 2.25 (b) For purposes of this subdivision, "grain bin" means a fixed structure used to store |
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| 56 | 56 | | 2.26grains that maintains temperature or humidity levels, or both, to prevent spoilage and protect |
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| 57 | 57 | | 2.27from infestation. |
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| 58 | 58 | | 2.28 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 59 | 59 | | 2.2930, 2025. |
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| 60 | 60 | | 2Sec. 2. |
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| 61 | 61 | | REVISOR EAP/NS 25-0228401/27/25 |
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