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 word "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 items are ultimately sold at retail or not.

Additionally, the bill clarifies the definition of "telecommunications or pay television machinery and equipment" to include various types of machinery, equipment, and fixtures used in the provision of these services. It also specifies that the exemption applies to repair and replacement parts, as well as necessary software. The new provisions will take effect for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.68