This bill amends Minnesota Statutes 2024, section 297A.70, by adding a new subdivision that provides sales and use tax exemptions specifically for nonprofit animal shelters. The bill defines "animal shelter" as a nonprofit organization dedicated to rescuing, sheltering, and finding homes for unwanted animals. It outlines that purchases made by these shelters for activities directly related to their mission are exempt from sales tax, with certain exceptions including construction materials for buildings not primarily used by tax-exempt entities, lodging, prepared food, and vehicle leasing.

Additionally, the bill states that the sale or adoption of unwanted animals, as well as the sale of related supplies and equipment, is exempt from sales tax. Fundraising events conducted by animal shelters are also exempt, although there are limits on the number of days these events can occur without incurring tax on gross receipts. The exemptions will take effect for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.70