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 nonprofit physical rehabilitation clinics 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 specific therapy services, and meet certain patient demographic criteria, including having a significant percentage of patients covered by medical assistance or MinnesotaCare.

Additionally, the bill updates the existing language by removing references to blood centers and adding nonprofit physical rehabilitation clinics to the list of entities eligible for sales tax exemptions. The effective date for this exemption is set for sales and purchases made after June 30, 2025. Overall, the bill aims to support nonprofit outpatient rehabilitation clinics by alleviating their tax burden, thereby potentially enhancing their ability to serve patients in need.

Statutes affected:
Introduction: 297A.70