This bill proposes an amendment to Minnesota Statutes 2024, specifically section 295.52, to exempt small rural ambulance services from health care gross receipts taxes. A new subdivision, Subd. 5a, is added to define "small rural ambulance services" as those that operate outside metropolitan counties and certain specified cities, with annual gross revenues of $10 million or less. The exemption is set to take effect on January 1, 2026, or upon federal approval, whichever is later.

Additionally, the bill mandates that the commissioner of human services seek federal approval for this tax exemption, ensuring that such approval does not jeopardize eligibility for federal financial participation. The commissioner is also authorized to apply for necessary waivers of federal requirements related to health care-related taxes to facilitate this exemption. The provisions regarding federal approval are effective immediately upon final enactment.

Statutes affected:
Introduction: 295.52