1.1 	A bill for an act
1.2 	relating to taxation; sales and use; providing an exemption for Internet service 
1.3 	provider machinery and equipment;amending Minnesota Statutes 2016, section 
1.4 	297A.68, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 297A.68, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 46.Internet service provider machinery and equipment. Internet service 
1.9 	machinery and equipment purchased or leased for use directly by an Internet service provider 
1.10 	primarily in the provision of Internet service that are ultimately to be sold at retail are exempt, 
1.11 	regardless of whether purchased by the owner, a contractor, or a subcontractor. For purposes 
1.12 	of this subdivision, an "Internet service provider" means a business or person that provides 
1.13 	individuals and other companies access to the Internet and other related services such as 
1.14 	Web site building, cloud storage, virtual hosting, and similar data processing and information 
1.15 	services through one or more points of presence on the Internet.

1.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
1.17 	30, 2018.