Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF455 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; sales and use; providing an exemption for certain nonprofit
3	3	1.3 outpatient rehabilitation clinics; amending Minnesota Statutes 2024, section
4	4	1.4 297A.70, subdivision 7.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 297A.70, subdivision 7, is amended to read:
7	7	1.7 Subd. 7.Hospitals, outpatient surgical centers, critical access dental providers, and
8	8	1.8blood centers, and nonprofit physical rehabilitation clinics.(a) Sales, except for those
9	9	1.9listed in paragraph (f) (g), to a hospital are exempt, if the items purchased are used in
10	10	1.10providing hospital services. For purposes of this subdivision, "hospital" means a hospital
11	11	1.11organized and operated for charitable purposes within the meaning of section 501(c)(3) of
12	12	1.12the Internal Revenue Code, and licensed under chapter 144 or by any other jurisdiction, and
13	13	1.13"hospital services" are services authorized or required to be performed by a "hospital" under
14	14	1.14chapter 144.
15	15	1.15 (b) Sales, except for those listed in paragraph (f) (g), to an outpatient surgical center are
16	16	1.16exempt, if the items purchased are used in providing outpatient surgical services. For purposes
17	17	1.17of this subdivision, "outpatient surgical center" means an outpatient surgical center organized
18	18	1.18and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
19	19	1.19Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes
20	20	1.20of this subdivision, "outpatient surgical services" means: (1) services authorized or required
21	21	1.21to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For
22	22	1.22purposes of this subdivision, "urgent care" means health services furnished to a person
23	23	1.23whose medical condition is sufficiently acute to require treatment unavailable through, or
24	24	1Section 1.
25	25	25-01065 as introduced12/06/24 REVISOR EAP/NS
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 455NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: NELSON and Weber)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading01/21/2025
32	32	Referred to Taxes 2.1inappropriate to be provided by, a clinic or physician's office, but not so acute as to require
33	33	2.2treatment in a hospital emergency room.
34	34	2.3 (c) Sales, except for those listed in paragraph (f) (g), to a critical access dental provider
35	35	2.4are exempt, if the items purchased are used in providing critical access dental care services.
36	36	2.5For the purposes of this subdivision, "critical access dental provider" means a dentist or
37	37	2.6dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the
38	38	2.7previous calendar year, had no more than 15 percent of its patients covered by private dental
39	39	2.8insurance.
40	40	2.9 (d) Sales, except for those listed in paragraph (f) (g), to a blood center are exempt, if the
41	41	2.10items purchased are used in providing blood collection and distribution services.
42	42	2.11Notwithstanding paragraph (f) (g), leases by a blood center of a truck, as defined in section
43	43	2.12168.002; a bus, as defined in section 168.002; or a passenger automobile, as defined in
44	44	2.13section 168.002, if the truck, bus, or automobile is used for carrying out the purposes of the
45	45	2.14blood center, including the collection of blood from donors, setting up of blood drives, and
46	46	2.15delivering blood to hospitals are exempt. For purposes of this subdivision, "blood center"
47	47	2.16means an entity organized and operated for charitable purposes under section 501(c)(3) of
48	48	2.17the Internal Revenue Code that is:
49	49	2.18 (1) registered as a blood establishment pursuant to Code of Federal Regulations, title
50	50	2.1921, part 607;
51	51	2.20 (2) a human cells, tissues, and cellular and tissue-based products establishment under
52	52	2.21Code of Federal Regulations, title 21, part 1271, subpart B; or
53	53	2.22 (3) a clinical lab that performs infectious disease testing, blood typing, and other
54	54	2.23laboratory testing services in connection with blood processing for transfusion into humans
55	55	2.24under Code of Federal Regulations, title 42, part 493.
56	56	2.25 (e) Sales, except those listed in paragraph (g), to a nonprofit physical rehabilitation clinic
57	57	2.26are exempt if the items are used in providing outpatient rehabilitation services. For the
58	58	2.27purposes of this paragraph, "nonprofit physical rehabilitation clinic" means a clinic:
59	59	2.28 (1) organized and operated for charitable purposes within the meaning of section 501(c)(3)
60	60	2.29of the Internal Revenue Code;
61	61	2.30 (2) providing physical therapy, occupational therapy, or speech therapy;
62	62	2.31 (3) whose patients covered by medical assistance or MinnesotaCare comprise at least
63	63	2.3250 percent of all patients served in the most recent calendar year;
64	64	2Section 1.
65	65	25-01065 as introduced12/06/24 REVISOR EAP/NS 3.1 (4) providing at least 10,000 patient encounters with patients who are uninsured or
66	66	3.2qualify to be covered by medical assistance, MinnesotaCare, or a home and community-based
67	67	3.3services program;
68	68	3.4 (5) offering a sliding scale for payment for services; and
69	69	3.5 (6) had no more than 15 percent of its patients covered by private health insurance in
70	70	3.6the most recent calendar year.
71	71	3.7 (e) (f) The exemption provided under paragraph (d) expires January 1, 2028.
72	72	3.8 (f) (g) This exemption does not apply to the following products and services:
73	73	3.9 (1) purchases made by a clinic, physician's office, or any other medical facility not
74	74	3.10operating as a hospital, outpatient surgical center, critical access dental provider, or blood
75	75	3.11center, or nonprofit physical rehabilitation clinic, even though the clinic, office, or facility
76	76	3.12may be owned and operated by a hospital, outpatient surgical center, critical access dental
77	77	3.13provider, or blood center, or nonprofit physical rehabilitation clinic;
78	78	3.14 (2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared
79	79	3.15food, candy, and soft drinks;
80	80	3.16 (3) building and construction materials used in constructing buildings or facilities that
81	81	3.17will not be used principally by the hospital, outpatient surgical center, critical access dental
82	82	3.18provider, or blood center, or nonprofit physical rehabilitation clinic;
83	83	3.19 (4) building, construction, or reconstruction materials purchased by a contractor or a
84	84	3.20subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
85	85	3.21maximum price covering both labor and materials for use in the construction, alteration, or
86	86	3.22repair of a hospital, outpatient surgical center, critical access dental provider, or blood center,
87	87	3.23or nonprofit physical rehabilitation clinic; or
88	88	3.24 (5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
89	89	3.25 (g) (h) A limited liability company also qualifies for exemption under this subdivision
90	90	3.26if (1) it consists of a sole member that would qualify for the exemption, and (2) the items
91	91	3.27purchased qualify for the exemption.
92	92	3.28 (h) (i) An entity that contains both a hospital and a nonprofit unit may claim this
93	93	3.29exemption on purchases made for both the hospital and nonprofit unit provided that:
94	94	3.30 (1) the nonprofit unit would have qualified for exemption under subdivision 4; and
95	95	3.31 (2) the items purchased would have qualified for the exemption.
96	96	3Section 1.
97	97	25-01065 as introduced12/06/24 REVISOR EAP/NS 4.1 EFFECTIVE DATE.This section is effective for sales and purchases made after June
98	98	4.230, 2025.
99	99	4Section 1.
100	100	25-01065 as introduced12/06/24 REVISOR EAP/NS