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SF2849 (Legislative Session 94 (2025-2026))

Exemption modification for agriculture processing materials

Related bill: HF3107

AI Generated Summary

Purpose of the Bill

The aim of this bill is to update the tax exemption process for materials used in constructing agriculture processing facilities in Minnesota, specifically those with a substantial capital investment.

Main Provisions

  • Exemption for Materials: The bill allows for sales and use tax exemptions on building materials and supplies used for constructing agriculture processing facilities.
  • Capital Investment Requirement: To qualify for this exemption, the total capital investment in the facility must exceed $100 million.
  • Definition of Facility: The agriculture processing facility is defined as infrastructure used primarily for processing or producing products from agricultural crops. This includes waste and residues but excludes livestock products (except for milk and poultry products) and wood products.
  • Limited Land Definition: The exemption applies to land hosting these facilities, including surrounding land used for storage or other directly related activities, but not land used for growing crops.
  • Tax Reimbursement Process: Taxes must initially be paid as usual, but they are eligible for refund according to specific procedures, indicating a system of paying first and then claiming back the taxes.

Significant Changes to Existing Law

  • The bill modifies previous tax law by extending the tax exemption rules to cover more specific and high-investment projects in agriculture processing facilities.
  • It narrows down the application of the tax exemption to projects with a much higher capital investment threshold, ensuring that only significant projects benefit.

Relevant Terms

agriculture processing facilities, tax exemption, sales and use tax, building materials, capital investment, tax refund, agricultural crops, livestock products, poultry products.

Bill text versions

Past committee meetings

  • Taxes on: April 24, 2025 09:00

Actions

DateChamberWhereTypeNameCommittee Name
March 20, 2025SenateFloorActionIntroduction and first reading
March 20, 2025SenateFloorActionReferred toTaxes
April 23, 2025SenateFloorActionAuthor added
April 28, 2025SenateFloorActionAuthor added
May 01, 2025SenateFloorActionAuthor added
May 05, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "A clarification of the definition of 'agriculture processing facility'."
      ],
      "removed": [
        ""
      ],
      "summary": "Modifications made to the exemption for agriculture processing materials under section 297A.71, subdivision 13.",
      "modified": [
        "Criteria for tax refund procedures in relation to agriculture processing facilities."
      ]
    },
    "citation": "297A.71",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Reference made to sales tax rate under section 297A.62, subdivision 1.",
      "modified": [
        "Clarifies the application of sales tax rate for agriculture processing materials before refund."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Bill references section 297A.75 for refund procedures.",
      "modified": [
        "Specifies the method of tax refund after collection under the terms outlined."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors