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

Additionally, the bill makes several deletions and insertions to clarify the definitions and conditions under which various healthcare providers, including hospitals, outpatient surgical centers, critical access dental providers, blood centers, and now nonprofit physical rehabilitation clinics, can qualify for sales tax exemptions. The effective date for these changes is set for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.70