Purpose of the Bill

The purpose of this bill is to amend taxation laws in Minnesota, specifically focusing on sales and use tax exemptions for materials used in agriculture processing facilities. It aims to encourage investment in large-scale agricultural processing infrastructure by modifying existing tax exemptions.

Main Provisions

• Exemption for Building Materials: The bill provides an exemption from sales and use tax for building materials and supplies used in the construction of agriculture processing facilities with a total capital investment exceeding $100 million.
• Definition of Agriculture Processing Facilities: It defines these facilities as those primarily used for processing or producing marketable products from agricultural crops, including their waste and residues. This definition does not include facilities intended for livestock or wood product processing, except for milk, poultry, or poultry products.
• Tax Refunds: Even though the tax must be initially imposed and collected, it will then be refunded according to specified procedures, which eases the financial burden on companies constructing these facilities.

Significant Changes to Existing Law

• The bill revises the threshold for tax exemption eligibility by specifying the required capital investment amount for agriculture processing facilities, set at $100 million.
• It refines the definition of agriculture processing facilities, clarifying what types of products and operations qualify, excluding certain animal and wood products.

Relevant Terms

• Sales and use tax exemption
• Agriculture processing facilities
• Capital investment
• Tax refund process
• Marketable products from agricultural crops