This bill, S.F. No. 1969, proposes an amendment to Minnesota Statutes 2024, section 297A.70, subdivision 19, to expand the sales and use tax exemption for nonprofit snowmobile clubs in the state.

Key Provisions of the Bill:

1. Expanded Tax Exemption:

   • The bill exempts sales tax on purchases of tangible personal property used primarily and directly for grooming state or grant-in-aid snowmobile trails.
     
   • This includes grooming machines, attachments, accessories, and repair parts.
     
   • Additionally, it exempts materials, supplies, and equipment used in construction, reconstruction, maintenance, or improvement of these trails.

2. Eligibility Requirement:

   • To qualify for the exemption, a nonprofit snowmobile club must have received a state grant-in-aid maintenance and grooming grant from the Minnesota Department of Natural Resources (DNR).
     
   • The club must have applied for the grant through a local unit of government sponsor and received funding within the current year or the previous three years.

Purpose of the Bill:

• To support nonprofit snowmobile clubs involved in maintaining and improving state and grant-in-aid snowmobile trails by reducing their costs.
• Encourages more clubs to participate in the state’s trail maintenance program by offering financial relief through tax exemptions.

Status of the Bill:

• Introduced in the Senate and referred to the Taxes Committee for review.

This bill primarily benefits nonprofit snowmobile clubs by reducing the financial burden of maintaining snowmobile trails, which are essential for winter recreation in Minnesota.