This bill proposes an amendment to Minnesota Statutes 2024, section 295.52, to exempt small rural ambulance services from health care gross receipts taxes. A new subdivision, Subd. 5a, is added, defining "small rural ambulance service" as an ambulance service that operates outside of metropolitan counties and certain specified cities, with annual gross revenues of $10 million or less. The exemption is intended to alleviate the financial burden on these services, which are crucial for rural communities.

Additionally, the bill outlines the process for obtaining federal approval for this tax exemption. The commissioner of human services is tasked with requesting necessary federal approvals and may apply for waivers of specific federal requirements related to health care-related taxes. The effective date for the exemption is set for January 1, 2026, or upon federal approval, whichever is later, while the provisions regarding federal approval take effect immediately upon final enactment.

Statutes affected:
Introduction: 295.52