Bill > SF455

This bill establishes a sales and use tax exemption for nonprofit outpatient rehabilitation clinics in Minnesota, specifically creating a new category of tax-exempt organizations alongside existing exemptions for hospitals, outpatient surgical centers, critical access dental providers, and blood centers. To qualify for the exemption, a nonprofit physical rehabilitation clinic must meet several specific criteria: it must be organized as a charitable organization under section 501(c)(3) of the Internal Revenue Code, provide physical, occupational, or speech therapy, have at least 50% of patients covered by medical assistance or MinnesotaCare, provide at least 10,000 patient encounters with uninsured or publicly supported patients, offer a sliding scale payment system, and have no more than 15% of patients covered by private health insurance. The tax exemption would apply to items purchased and used directly in providing outpatient rehabilitation services, with certain exclusions such as prepared food, candy, soft drinks, and motor vehicle leases. The bill becomes effective for sales and purchases made after June 30, 2025, and aims to support nonprofit rehabilitation clinics that serve predominantly low-income and publicly supported patients by reducing their operational costs through sales tax relief.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0455&ssn=0&y=2025