This bill amends Minnesota Statutes 2024, section 297A.70, subdivision 7, to provide a sales tax exemption for certain nonprofit outpatient rehabilitation clinics. The new language specifies that sales to a nonprofit physical rehabilitation clinic are exempt if the items purchased are used in providing outpatient rehabilitation services. To qualify as a nonprofit physical rehabilitation clinic, the clinic must be organized for charitable purposes under section 501(c)(3) of the Internal Revenue Code, provide physical, occupational, or speech therapy, and meet specific patient care criteria, including having at least 50% of patients covered by medical assistance or MinnesotaCare and offering a sliding scale for payment.

Additionally, the bill updates the existing language by replacing the term "and" with "blood centers, and nonprofit physical rehabilitation clinics" in the list of entities eligible for sales tax exemptions. It also modifies the numbering of certain paragraphs and clarifies the conditions under which sales to these clinics are exempt. The effective date for this exemption is set for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.70