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, replacing references to the deleted exemption and adjusting the numbering of the remaining clauses accordingly. The effective date for these changes is set for July 1, 2025.

Additionally, the bill outlines the process for refunds related to the tax on exempt items, specifying the eligible applicants and the necessary information required for the application. The amendments ensure that the tax on gross receipts from the sale of certain exempt items will be imposed and collected as if the sale were taxable, thereby eliminating the previous tax benefits afforded to data centers. The repeal of the exemption is aimed at increasing tax revenue and adjusting the state's approach to taxation in the context of data centers.

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