This bill proposes significant changes to Minnesota's taxation system by repealing various sales and use tax exemptions and introducing a gross receipts tax on a range of services. It establishes a new section in Minnesota Statutes, chapter 295, imposing a two percent tax on gross receipts from retail sales of taxable services provided by one trade or business entity to another. The bill defines key terms such as "gross receipts," "taxable services," and "trade or business entity," and specifies that this tax is in addition to any other taxes under existing laws. It also includes provisions for tax collection, credits for taxes paid to other states, and the administration of the new tax. The effective date for the gross receipts tax is set for services received after December 31, 2025, while amendments to existing statutes will take effect on July 1, 2025.

Additionally, the bill amends various sections of Minnesota Statutes related to tax refunds and exemptions, updating the eligibility criteria for refunds on taxes paid for exempt items. It changes the numbering of certain clauses, removing clauses (13) and (15), while inserting new clauses (12) and (14). The bill specifies that applications for refunds must include sufficient information for verification and limits applicants to two refund applications per calendar year for capital equipment taxes. It also repeals several subdivisions related to exemptions, including those for precious metal bullion and collegiate event season ticket purchasing rights. All changes are set to take effect on July 1, 2025, aiming to streamline the tax refund process and clarify eligibility criteria for various exemptions, impacting both individuals and businesses in Minnesota.

Statutes affected:
Introduction: 297A.61, 297A.75, 297A.82