Bill > HF3107

This bill modifies the sales and use tax exemption for agricultural processing facility materials by refining the definition and expanding the scope of the exemption. The bill clarifies that building materials and supplies used to construct an agricultural processing facility are exempt from sales tax if the total capital investment in the facility is expected to exceed $100,000,000. The bill provides a more detailed definition of an "agricultural processing facility" as land, buildings, structures, fixtures, and improvements primarily used for processing or producing marketable products from agricultural crops, including crop waste and residues. The definition specifically excludes facilities focused on livestock, poultry, or wood products. The exemption applies to the land directly under and immediately surrounding the facility used for processing-related functions, but not including land used for growing crops. The tax will still be initially collected at the standard rate and then refunded through the existing process outlined in Minnesota law. This exemption becomes effective for sales and purchases made after June 30, 2025, potentially providing a financial incentive for large-scale agricultural processing facility development in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3107&ssn=0&y=2025