SF 2765

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/03/2025 09:05 a.m.

A bill for an act
relating to taxation; exempting small rural ambulance services from health care
gross receipts taxes; amending Minnesota Statutes 2024, section 295.52, by adding
a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 295.52, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Small rural ambulance services. new text end

new text begin (a) Small rural ambulance services are not
subject to the tax under this section.
new text end

new text begin (b) For purposes of this subdivision, "small rural ambulance service" means an ambulance
service that:
new text end

new text begin (1) has a base of operations, as defined in section 144E.001, located outside the
metropolitan counties listed in section 473.121, subdivision 4, and outside the cities of
Duluth, Mankato, Moorhead, Rochester, and St. Cloud; and
new text end

new text begin (2) has annual gross revenues equal to or less than $10,000,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026, or upon federal approval
as provided in section 2, whichever is later. The commissioner of human services must
notify the revisor of statutes when federal approval is obtained as provided in section 2.
new text end

Sec. 2. new text begin FEDERAL APPROVAL; WAIVERS.
new text end

new text begin (a) The commissioner of human services must request, as the commissioner determines
necessary, federal approval of the exemption from the health care-related tax under Minnesota
Statutes, section 295.52, subdivision 2, for small rural ambulance services, as provided in
section 1. The request must include a stipulation that the approval be given without loss of
eligibility for federal financial participation.
new text end

new text begin (b) To obtain the federal approval, the commissioner may apply for a waiver of the
federal broad-based requirement for health care-related taxes, the uniform requirement for
health care-related taxes, and any other provision of federal law necessary to be waived to
implement the exemption from the health care-related tax under Minnesota Statutes, section
295.52, subdivision 2, of small rural ambulance services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end