The bill amends Minnesota Statutes 2024, specifically section 297A.68, to modify the exemption for land clearing equipment and related services. It introduces a new provision that specifies that the exemption for accessory tools, equipment, and other items with an ordinary useful life of less than 12 months does not apply to those used in landscaping, gardening, or lawn care services. Additionally, the bill clarifies that the exemption for land clearing services, which includes tree, bush, shrub, and stump removal, applies when sold to contractors or subcontractors as part of a land clearing contract. The definition of a land clearing contract is expanded to include the removal of roots and stumps for development purposes.

Furthermore, the bill establishes an effective date for these changes, stating that they will apply to sales and purchases made after June 30, 2025. This ensures that the new regulations will not take effect until the specified date, allowing for a transition period for those affected by the changes in tax exemptions related to land clearing and landscaping services.

Statutes affected:
Introduction: 297A.68