Bill > SF2849

This bill modifies the sales tax exemption for agricultural processing facility materials by expanding and clarifying the definition of an "agriculture processing facility" and adjusting its eligibility requirements. Previously, the exemption applied only to facilities with a total capital investment exceeding $100,000,000 and referenced a specific definition in another statute. The new definition broadens the scope to include land, buildings, structures, fixtures, and improvements primarily used for processing or producing marketable products from agricultural crops, including waste and residues. The bill explicitly excludes facilities processing livestock, poultry, wood products, and other non-crop agricultural materials. The land covered by the exemption is limited to the site of the facility and its immediately surrounding storage or related areas, excluding agricultural crop growing land. The tax will still be initially collected at the standard rate and then refunded through an existing mechanism. The changes will take effect for sales and purchases made after June 30, 2025, providing clarity and potentially expanding tax benefits for agricultural processing facilities in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2849&ssn=0&y=2025