Bill > SF735

This bill modifies the sales tax exemption for telecommunications and pay television services machinery and equipment by removing the word "primarily" from the existing law, which effectively broadens the tax exemption. Currently, the law provides a sales tax exemption for machinery and equipment used by telecommunications or pay television service providers in delivering their services. The bill clarifies that the exemption applies to a wide range of equipment, including items used for receiving, transmitting, processing, and supporting telecommunications services, such as computers, routers, amplifiers, satellite equipment, and related software. The exemption covers equipment purchased by the owner, contractors, or subcontractors, and includes repair and replacement parts. The bill specifies that this expanded exemption will take effect for sales and purchases made after June 30, 2025, which means businesses in the telecommunications and pay television services sector will benefit from a more comprehensive tax exemption for their equipment and infrastructure investments starting in the fiscal year 2026.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0735&ssn=0&y=2025