The bill amends Minnesota Statutes 2024, specifically section 297A.68, to modify the sales and use tax exemption for land clearing equipment and related services. It introduces a new provision that specifies 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 tree, bush, shrub, and stump removal applies when sold to contractors or subcontractors as part of a land clearing contract, which is defined to include the removal of roots and stumps for development purposes.

The effective date for these changes is set for sales and purchases made after June 30, 2025. The bill also removes the previous language that limited the exemption to certain types of land clearing, thereby broadening the scope of the exemption to include more types of land clearing activities. Overall, the bill aims to refine the tax exemptions related to land clearing and associated services, ensuring clarity and specificity in the law.

Statutes affected:
Introduction: 297A.68