The bill proposes an amendment to Minnesota Statutes 2024, section 297A.68, to introduce a new exemption for sales and use tax related to fiber and conduit utilized in broadband and Internet access services. Specifically, it adds a subdivision (Subd. 35b) that states fiber and conduit purchased or leased for direct use by broadband or Internet service providers, primarily for the provision of services intended for retail sale, will be exempt from sales tax, unless already exempt under a previous subdivision (35a).

Additionally, the bill specifies that this exemption will be effective for sales and purchases made after July 1, 2025. This legislative change aims to support the expansion of broadband infrastructure by reducing the tax burden on service providers, thereby promoting better access to Internet services for consumers.

Statutes affected:
Introduction: 297A.68