Bill > SF3332

This bill establishes a new gross receipts tax on business-to-business services and makes several changes to existing tax laws. Specifically, the bill creates a 2% gross receipts tax on certain business services, including legal, accounting, engineering, consulting, and repair services, when provided by one business to another. The tax would be effective for services received after December 31, 2025, and businesses may optionally pass this tax on to customers by separately stating it on invoices. The bill also removes several existing tax exemptions, including exemptions for precious metal bullion, suite licenses, season ticket purchasing rights, certain data center equipment, and some amenities included with event admission. Additionally, the bill makes technical amendments to existing tax statutes, adjusting references and refund procedures to align with the new tax structure. The changes aim to modify the state's tax collection approach for business services, potentially increasing state revenue by broadening the tax base and eliminating certain specialized exemptions.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3332&ssn=0&y=2025