The bill amends Minnesota Statutes 2024, section 297A.68, subdivision 35a, to modify the exemption for telecommunications or pay television services machinery and equipment. The key change is the removal of the term "primarily" from the exemption criteria, allowing for a broader interpretation of the exemption. This means that machinery and equipment purchased or leased for use by telecommunications or pay television service providers will be exempt from sales and use tax, regardless of whether the equipment is ultimately sold at retail.

Additionally, the bill specifies that the exemption applies to various types of machinery and equipment used in telecommunications and pay television services, including items for receiving, processing, and transmitting services, as well as ancillary equipment necessary for their operation. The bill also introduces an effective date, stating that the changes will apply to sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.68