SF 1541

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2025 09:15 a.m.

A bill for an act
relating to taxation; sales and use; providing an exemption for grain bins and related
construction materials and supplies and tractor tires; amending Minnesota Statutes
2024, sections 297A.61, subdivision 12; 297A.69, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 297A.61, subdivision 12, is amended to read:

Subd. 12.

Farm machinery.

(a) "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used directly and principally in
agricultural production of tangible personal property intended to be sold ultimately at retail
including, but not limited to:

(1) machinery for the preparation, seeding, or cultivation of soil for growing agricultural
crops;

(2) barn cleaners, milking systems, grain dryers, feeding systems including stationary
feed bunks, and similar installations, whether or not the equipment is installed by the seller
and becomes part of the real property; and

(3) irrigation equipment sold for exclusively agricultural use, including pumps, pipe
fittings, valves, sprinklers, and other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, whether or not the equipment is installed
by the seller and becomes part of the real property.

(b) Farm machinery does not include:

(1) repair or replacement parts;

(2) tools, shop equipment, deleted text begin grain bins, deleted text end fencing material, communication equipment, and
other farm supplies;

(3) motor vehicles taxed under chapter 297B;

(4) snowmobiles or snow blowers;

(5) lawn mowers except those used in the production of sod for sale, or garden-type
tractors or garden tillers; or

(6) machinery, equipment, implements, accessories, and contrivances used directly in
the production of horses not raised for slaughter, fur-bearing animals, or research animals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 297A.69, subdivision 4, is amended to read:

Subd. 4.

Machinery, equipment, and fencing.

new text begin (a) new text end The following machinery, equipment,
and fencing is exempt:

(1) farm machinery;

(2) logging equipment, including chain saws used for commercial logging;

(3) fencing used for the containment of farmed Cervidae, as defined in section 35.153,
subdivision 3;

(4) primary and backup generator units used to generate electricity for the purpose of
operating farm machinery, aquacultural production equipment, or logging equipment, or
providing light or space heating necessary for the production of livestock, dairy animals,
dairy products, or poultry and poultry products; deleted text begin and
deleted text end

(5) aquaculture production equipment deleted text begin . deleted text end new text begin ;
new text end

new text begin (6) grain bins; and
new text end

new text begin (7) tractor tires.
new text end

new text begin (b) For purposes of this subdivision, "grain bin" means a fixed structure used to store
grains that maintains temperature or humidity levels, or both, to prevent spoilage and protect
from infestation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2025.
new text end