Bill > HF969

This bill amends Minnesota's sales and use tax law to expand the existing tax exemption for farm-related equipment and fencing. Specifically, the bill adds a new provision that exempts from sales tax all fencing materials, supplies, and equipment used directly and primarily in agricultural production of items intended for retail sale. Previously, the law only exempted fencing for specific purposes, such as containing farmed Cervidae (a type of deer-like animal). The new provision broadens the tax exemption to cover a wider range of agricultural fencing, including materials, construction supplies, and related equipment used in agricultural production. The bill's changes will take effect for sales and purchases made after June 30, 2025, meaning farmers will be able to purchase fencing and related materials without paying sales tax starting in July 2025. This amendment is designed to provide economic relief and support to farmers by reducing their equipment and infrastructure costs.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0969&ssn=0&y=2025