The bill modifies the existing sales and use tax exemptions related to land clearing equipment and services in Minnesota. Specifically, it amends Minnesota Statutes 2024, section 297A.68, subdivision 3, by adding a new provision that excludes accessory tools, equipment, and other items with an ordinary useful life of less than 12 months from the exemption when used in landscaping, gardening, or lawn care services. Additionally, it clarifies that the exemption for land clearing services, as outlined in subdivision 40, applies to tree, bush, shrub, and stump removal sold to contractors or subcontractors as part of a land clearing contract, which is now defined to include the removal of roots and stumps for development purposes.

Both amendments will take effect for sales and purchases made after June 30, 2025. The changes aim to refine the scope of tax exemptions related to land clearing and landscaping services, ensuring that certain tools and equipment are no longer exempt while providing clarity on what constitutes a land clearing contract.

Statutes affected:
Introduction: 297A.68