Bill > SF297

This bill modifies two existing tax exemptions related to sales and use taxes in Minnesota. First, it removes the tax exemption for accessory tools, equipment, and other items with a useful life of less than 12 months that are used in providing landscaping, gardening, or lawn care services. Previously, these items were exempt from sales tax when used in providing certain taxable services, but now they will be subject to taxation. Second, the bill expands the existing land clearing tax exemption to include not just site development, but also land clearing for remodeling, improvement, or expansion of an existing structure. The bill defines a "land clearing contract" as a contract involving the removal of trees, bushes, shrubs, roots, and stumps, and specifies that the exemption applies to such services sold to contractors or subcontractors. Both changes will take effect for sales and purchases made after June 30, 2025, giving businesses time to adjust to the new tax regulations. The modifications aim to clarify and refine existing tax exemption rules for specific types of services and equipment.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0297&ssn=0&y=2025