This bill proposes significant changes to the taxation of sales and use in Minnesota by repealing the existing exemption for data centers. Specifically, it amends Minnesota Statutes 2024, section 297A.75, to remove the exemption for enterprise information technology equipment and computer software used in qualified data centers, as previously outlined in section 297A.68, subdivision 42. The bill also updates the language in subdivisions 1, 2, and 3 of section 297A.75, adjusting the clauses to reflect the removal of the data center exemption and ensuring that the tax on gross receipts from certain exempt items is imposed and collected as if the sale were taxable.

Additionally, the bill establishes an effective date of July 1, 2025, for these changes, indicating that the repeal of the data center exemption and the amendments to the tax collection process will take effect at that time. The overall intent of the bill is to eliminate the tax benefits previously afforded to data centers, thereby increasing tax revenue from this sector.

Statutes affected:
Introduction: 297A.75, 297A.68