1.1 	A bill for an act
1.2 	relating to taxation; sales and use; expanding the exemption for purchases by 
1.3 	nonprofit snowmobile clubs;amending Minnesota Statutes 2022, section 297A.70, 
1.4 	subdivision 19.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2022, section 297A.70, subdivision 19, is amended to read:
1.7 		Subd. 19.Nonprofit snowmobile clubs; machinery and equipment. (a) The following 
1.8 	sales to an eligible nonprofit snowmobile club are exempt:
1.9 	(1) sales of tangible personal property, including grooming machines, attachments, other 
1.10 	associated accessories, and repair parts,to a nonprofit snowmobile club that is used primarily 
1.11 	and directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The 
1.12 	exemption applies to grooming machines, attachments, other associated accessories, and 
1.13 	repair parts.; and
1.14 	(2) sales of materials and supplies used or consumed in, and equipment incorporated 
1.15 	into, the construction, reconstruction, maintenance, or improvement of state or grant-in-aid 
1.16 	snowmobile trails, completed by the nonprofit snowmobile club.
1.17 	(b) A nonprofit snowmobile club is eligible for the exemption under this subdivision if 
1.18 	it received, in the current year or in the previous three-year period, a state grant-in-aid 
1.19 	maintenance and grooming grant administered by the Department of Natural Resources by 
1.20 	applying for the grant with a local unit of government sponsor.

1.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
1.22 	30, 2023.