The 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, defines "small rural ambulance service" as an ambulance service that operates outside of specified metropolitan counties and cities, with annual gross revenues of $10 million or less. This 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 certain federal requirements to ensure the exemption does not affect eligibility for federal financial participation. The effective date for the exemption is set for January 1, 2026, or upon federal approval, while the provisions related to federal approval take effect immediately following final enactment.

Statutes affected:
Introduction: 295.52