SF 3332

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2025 09:27 a.m.

A bill for an act
relating to taxation; repealing various sales and use tax exemptions; imposing a
gross receipts tax on various services; amending Minnesota Statutes 2024, sections
297A.61, subdivision 4; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4;
proposing coding for new law in Minnesota Statutes, chapter 295; repealing
Minnesota Statutes 2024, sections 297A.67, subdivisions 34, 35, 38; 297A.68,
subdivisions 17, 30, 42, 46.

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

Section 1.

new text begin [295.90] BUSINESS-TO-BUSINESS SERVICES GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the definitions in this
subdivision have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Gross receipts" means the total amount received in money or by barter or exchange
for taxable services as measured by the sales price, but does not include any taxes imposed
directly on the consumer that are separately stated on the invoice, bill of sale, or similar
document given to the purchaser.
new text end

new text begin (d) "Retail sale" means any sale of a taxable service for any purpose other than resale
by the purchaser in the normal course of business as defined in section 297A.61, subdivision
21.
new text end

new text begin (e) "Taxable services" means the sale of the following services by a trade or business
entity to another trade or business entity:
new text end

new text begin (1) legal;
new text end

new text begin (2) accounting and bookkeeping;
new text end

new text begin (3) architectural and engineering;
new text end

new text begin (4) research and development;
new text end

new text begin (5) specialized design;
new text end

new text begin (6) computer;
new text end

new text begin (7) management consulting;
new text end

new text begin (8) other consulting and development;
new text end

new text begin (9) office administrative;
new text end

new text begin (10) facilities support;
new text end

new text begin (11) employment;
new text end

new text begin (12) business support;
new text end

new text begin (13) professional and technical;
new text end

new text begin (14) automotive repair and maintenance;
new text end

new text begin (15) electronic equipment repair and maintenance;
new text end

new text begin (16) commercial machinery repair and maintenance;
new text end

new text begin (17) repair and maintenance of personal property; and
new text end

new text begin (18) any service enumerated in section 297A.61, subdivision 3, paragraph (g), clauses
(3), (5), and (6), items (i), (iii), (iv), and (vi).
new text end

new text begin (f) "Trade or business" means activity carried on for the production of income from
selling goods or performing services.
new text end

new text begin (g) "Trade or business entity" means an entity that engages in a trade or business.
new text end

new text begin Subd. 2. new text end

new text begin Gross receipts tax imposed. new text end

new text begin (a) A tax equal to two percent of gross receipts
from retail sales in Minnesota of taxable services is imposed on any trade or business entity
that provides taxable services to another trade or business entity. A trade or business entity
may but is not required to collect the tax imposed by this section from the purchaser as long
as the tax is separately stated on the receipt, invoice, bill of sale, or similar document given
to the purchaser.
new text end

new text begin (b) The tax imposed under this section is in addition to any other tax imposed on the
retail sale of services under chapter 297A or income received for services provided under
chapter 290.
new text end

new text begin Subd. 3. new text end

new text begin Use tax imposed; credit for taxes paid. new text end

new text begin (a) A person who receives taxable
services for use in Minnesota, other than from a trade or business entity that paid the tax
under subdivision 2, is subject to tax at the rate imposed under subdivision 2. Liability for
the tax is incurred when the person has received the taxable services to completion in
Minnesota. The tax must be remitted to the commissioner in the same manner prescribed
for taxes imposed under chapter 297A.
new text end

new text begin (b) A trade or business entity that has paid taxes to another state or any subdivision
thereof on the same transaction and is subject to tax under this section is entitled to a credit
for the tax legally due and paid to another state or subdivision thereof to the extent of the
lesser of (1) the tax actually paid to the other state or subdivision thereof, or (2) the amount
of tax imposed by Minnesota on the transaction subject to tax in the other state or subdivision
thereof.
new text end

new text begin Subd. 4. new text end

new text begin Tax collection required. new text end

new text begin A trade or business entity with nexus in Minnesota
that is not subject to tax under subdivision 2 is required to collect the tax imposed under
subdivision 3 from the purchaser of the taxable services and give the purchaser a receipt
for the tax paid. The tax collected must be remitted to the commissioner in the same manner
prescribed for the taxes imposed under chapter 297A.
new text end

new text begin Subd. 5. new text end

new text begin Taxes paid to another state or any subdivision thereof; credit. new text end

new text begin A trade or
business entity that has paid taxes to another state or any subdivision thereof measured by
gross receipts and is subject to tax under this section on the same gross receipts is entitled
to a credit for the tax legally due and paid to another state or any subdivision thereof to the
extent of the lesser of (1) the tax actually paid to the other state or any subdivision thereof,
or (2) the amount of tax imposed by Minnesota on the gross receipts subject to tax in the
other taxing state or any subdivision thereof.
new text end

new text begin Subd. 6. new text end

new text begin Sourcing of sales. new text end

new text begin Section 297A.668 applies to the taxes imposed by this
section.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A apply to taxes imposed under this section.
new text end

new text begin Subd. 8. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) A trade or business entity must report the tax on
a return prescribed by the commissioner and must remit the tax in a form and manner
prescribed by the commissioner. The return must be filed and the tax must be paid using
the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
4, and chapter 297A.
new text end

new text begin (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date the refund is paid or credited. For purposes of
this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end

new text begin Subd. 9. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed by this section to the general fund.
new text end

new text begin Subd. 10. new text end

new text begin Personal debt. new text end

new text begin The tax imposed by this section, and interest and penalties
imposed with respect to the tax, are a personal debt of the person required to file a return
from the time that the liability for it arises, irrespective of when the time for payment of the
liability occurs. The debt must, in the case of the executor or administrator of the estate of
a decedent and in the case of a fiduciary, be that of the person in the person's official or
fiduciary capacity only, unless the person has voluntarily distributed the assets held in that
capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which
event the person is personally liable for any deficiency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable services received after
December 31, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 297A.61, subdivision 4, is amended to read:

Subd. 4.

Retail sale.

(a) A "retail sale" means:

(1) any sale, lease, or rental of tangible personal property for any purpose, other than
resale, sublease, or subrent of items by the purchaser in the normal course of business as
defined in subdivision 21; and

(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale
by the purchaser in the normal course of business as defined in subdivision 21.

(b) A sale of property used by the owner only by leasing it to others or by holding it in
an effort to lease it, and put to no use by the owner other than resale after the lease or effort
to lease, is a sale of property for resale.

(c) A sale of master computer software that is purchased and used to make copies for
sale or lease is a sale of property for resale.

(d) A sale of building materials, supplies, and equipment to owners, contractors,
subcontractors, or builders for the erection of buildings or the alteration, repair, or
improvement of real property is a retail sale in whatever quantity sold, whether the sale is
for purposes of resale in the form of real property or otherwise.

(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for
installation of the floor covering is a retail sale and not a sale for resale since a sale of floor
covering which includes installation is a contract for the improvement of real property.

(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery,
plants, sod, trees, and similar items that includes installation is a contract for the improvement
of real property.

(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is
not considered a sale of property for resale.

(h) A sale of tangible personal property utilized or employed in the furnishing or
providing of services under subdivision 3, paragraph (g), clause (1), including, but not
limited to, property given as promotional items, is a retail sale and is not considered a sale
of property for resale.

(i) A sale of tangible personal property used in conducting lawful gambling under chapter
349 or the State Lottery under chapter 349A, including, but not limited to, property given
as promotional items, is a retail sale and is not considered a sale of property for resale.

(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense
goods or services, including, but not limited to, coin-operated devices, is a retail sale and
is not considered a sale of property for resale.

(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
payment becomes due under the terms of the agreement or the trade practices of the lessor
or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision
11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than
10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is
executed.

(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
title or possession of the tangible personal property.

(m) A sale of a bundled transaction in which one or more of the products included in
the bundle is a taxable product is a retail sale, except that if one of the products is a
telecommunication service, ancillary service, Internet access, audio or video programming
service, deleted text begin a suite license exempt under section 297A.67, subdivision 35, or a right to purchase
season tickets to collegiate events exempt under section 297A.67, subdivision 38, deleted text end and the
seller has maintained books and records identifying through reasonable and verifiable
standards the portions of the price that are attributable to the distinct and separately
identifiable products, then the products are not considered part of a bundled transaction.
For purposes of this paragraph:

(1) the books and records maintained by the seller must be maintained in the regular
course of business, and do not include books and records created and maintained by the
seller primarily for tax purposes;

(2) books and records maintained in the regular course of business include, but are not
limited to, financial statements, general ledgers, invoicing and billing systems and reports,
and reports for regulatory tariffs and other regulatory matters; and

(3) books and records are maintained primarily for tax purposes when the books and
records identify taxable and nontaxable portions of the price, but the seller maintains other
books and records that identify different prices attributable to the distinct products included
in the same bundled transaction.

(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body
shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail
sale of the paint and materials. The motor vehicle repair or body shop that purchases motor
vehicle repair paint and motor vehicle repair materials for resale must either:

(1) separately state each item of paint and each item of materials, and the sales price of
each, on the invoice to the purchaser; or

(2) in order to calculate the sales price of the paint and materials, use a method which
estimates the amount and monetary value of the paint and materials used in the repair of
the motor vehicle by multiplying the number of labor hours by a rate of consideration for
the paint and materials used in the repair of the motor vehicle following industry standard
practices that fairly calculate the gross receipts from the retail sale of the motor vehicle
repair paint and motor vehicle repair materials. An industry standard practice fairly calculates
the gross receipts if the sales price of the paint and materials used or consumed in the repair
of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or
body shop business. Under this clause, the invoice must either separately state the "paint
and materials" as a single taxable item, or separately state "paint" as a taxable item and
"materials" as a taxable item. This clause does not apply to wholesale transactions at an
auto auction facility.

(o) A sale of specified digital products or other digital products to an end user with or
without rights of permanent use and regardless of whether rights of use are conditioned
upon payment by the purchaser is a retail sale. When a digital code has been purchased that
relates to specified digital products or other digital products, the subsequent receipt of or
access to the related specified digital products or other digital products is not a retail sale.

(p) A payment made to a cooperative electric association or public utility as a contribution
in aid of construction is a contract for improvement to real property and is not a retail sale.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 297A.75, subdivision 1, is amended to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;

deleted text begin (11) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
deleted text end

deleted text begin (12) deleted text end new text begin (11) new text end materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);

deleted text begin (13) deleted text end new text begin (12) new text end items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c);

deleted text begin (14) deleted text end new text begin (13) new text end items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

deleted text begin (15) deleted text end new text begin (14) new text end building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;

deleted text begin (16) deleted text end new text begin (15) new text end building materials, equipment, and supplies for qualifying capital projects
under section 297A.71, subdivision 52; and

deleted text begin (17) deleted text end new text begin (16) new text end building materials, equipment, and supplies for constructing, remodeling,
expanding, or improving a fire station, police station, or related facilities exempt under
section 297A.71, subdivision 53.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:

Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and deleted text begin (13) deleted text end new text begin (12) new text end , the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8) deleted text begin , (11), deleted text end and deleted text begin (14) deleted text end new text begin (13) new text end , the owner of the qualifying business;

(8) for subdivision 1, clauses (9), (10), deleted text begin (12), (16), and (17) deleted text end new text begin (11), (15), and (16) new text end , the
applicant must be the governmental entity that owns or contracts for the project or facility;
and

(9) for subdivision 1, clause deleted text begin (15) deleted text end new text begin (14) new text end , the applicant must be the owner or developer of
the building or project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to deleted text begin (12) deleted text end new text begin (11) new text end or deleted text begin (14) to (17) deleted text end new text begin (13) to (16) new text end , the
contractor, subcontractor, or builder must furnish to the refund applicant a statement including
the cost of the exempt items and the taxes paid on the items unless otherwise specifically
provided by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to
refunds under this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 297A.82, subdivision 4, is amended to read:

Subd. 4.

Exemptions.

(a) The following transactions are exempt from the tax imposed
in this chapter to the extent provided.

(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
or partnership is exempt if the transfer constitutes a transfer within the meaning of section
351 or 721 of the Internal Revenue Code.

(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
an aircraft for which a commercial use permit has been issued pursuant to section 360.654
is exempt, if the aircraft is resold while the permit is in effect.

(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
maintenance of such air flight equipment, and flight simulators, but does not include aircraft
with a maximum takeoff weight of less than 30,000 pounds.

(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
section 360.511 and approved by the Federal Aviation Administration, and which the seller
delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
within Minnesota, except in the course of interstate commerce or isolated and occasional
use, and will be registered in another state or country upon its removal from Minnesota.
This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
and uses the aircraft in the state exclusively for training purposes for a period not to exceed
ten days prior to removing the aircraft from this state.

deleted text begin (f) The sale or purchase of the following items that relate to aircraft operated under
Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
equipment and parts necessary for repair and maintenance of aircraft; and equipment and
parts to upgrade and improve aircraft.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 297A.67, subdivisions 34, 35, and 38; and 297A.68,
subdivisions 17, 30, 42, and 46, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-05334

297A.67 GENERAL EXEMPTIONS.

Subd. 34.

Precious metal bullion.

(a) Precious metal bullion is exempt. For purposes of this subdivision, "precious metal bullion" means bars or rounds that consist of 99.9 percent or more by weight of either gold, silver, platinum, or palladium and are marked with weight, purity, and content.

(b) The exemption under this subdivision does not apply to sales and purchases of jewelry, works of art, or scrap metal.

(c) The intent of this subdivision is to eliminate the difference in tax treatment between the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other investment instruments.

Subd. 35.

Suite licenses.

The sale of the privilege of admission under section 297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not include consideration paid for a license to use a private suite, private skybox, or private box seat, and the sale of the license is exempt provided that: (1) the lessee may use the private suite, private skybox, or private box seat by mutual arrangement with the lessor on days when there is no amusement or athletic event; and (2) the sales price for the privilege of admission is equal to or greater than the highest priced general admission ticket for the closest seat not in the private suite, private skybox, or private box seat.

Subd. 38.

Season ticket purchasing rights to collegiate events.

The sale of a right to purchase the privilege of admission to a college or university athletic event in a preferred viewing location for a season of a particular athletic event is exempt provided that:

(1) the consideration paid for the right to purchase is used entirely to support student scholarships, wellness, and academic costs; and

(2) the admission price is equal to or greater than the highest priced general admission ticket for the closest seat not in the preferred viewing location.

297A.68 BUSINESS EXEMPTIONS.

Subd. 17.

Ships used in interstate commerce; other vessels.

Repair, replacement, and rebuilding parts and materials, and lubricants, for the following are exempt:

(1) ships or vessels used or to be used principally in interstate or foreign commerce; and

(2) vessels with a gross registered tonnage of at least 3,000 tons.

Subd. 30.

Television commercials.

Tangible personal property primarily used or consumed in the preproduction, production, or postproduction of a television commercial is exempt. Any such commercial, regardless of the medium in which it is transferred, is exempt. "Preproduction" and "production" include, but are not limited to, all activities related to the preparation for shooting and the shooting of television commercials, including film processing. Equipment rented for the preproduction and production activities is exempt. "Postproduction" includes, but is not limited to, all activities related to the finishing and duplication of television commercials. This exemption does not apply to tangible personal property used primarily in administration, general management, or marketing. Machinery and equipment purchased for use in producing such commercials and fuel, electricity, gas, or steam used for space heating or lighting are not exempt under this subdivision.

Subd. 42.

Qualified data centers.

(a) Purchases of enterprise information technology equipment and computer software for use in a qualified data center, or a qualified refurbished data center, are exempt, except that computer software maintenance agreements are exempt for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner provided in section 297A.75. This exemption includes enterprise information technology equipment and computer software purchased to replace or upgrade enterprise information technology equipment and computer software in a qualified data center, or a qualified refurbished data center.

(b) Electricity used or consumed in the operation of a qualified data center or qualified refurbished data center is exempt.

(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:

(1) that is comprised of one or more buildings that consist in the aggregate of at least 25,000 square feet, and that are located on a single parcel or on contiguous parcels, where the total cost of construction or refurbishment, investment in enterprise information technology equipment, and computer software is at least $30,000,000 within a 48-month period. The 48-month period begins no sooner than July 1, 2012, except that costs for computer software maintenance agreements purchased before July 1, 2013, are not included in determining if the $30,000,000 threshold has been met;

(2) that is constructed or substantially refurbished after June 30, 2012, where "substantially refurbished" means that at least 25,000 square feet have been rebuilt or modified, including:

(i) installation of enterprise information technology equipment; environmental control, computer software, and energy efficiency improvements; and

(ii) building improvements; and

(3) that is used to house enterprise information technology equipment, where the facility has the following characteristics:

(i) uninterruptible power supplies, generator backup power, or both;

(ii) sophisticated fire suppression and prevention systems; and

(iii) enhanced security. A facility will be considered to have enhanced security if it has restricted access to the facility to selected personnel; permanent security guards; video camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, such as hand scans and retinal or fingerprint recognition; or similar security features.

In determining whether the facility has the required square footage, the square footage of the following spaces shall be included if the spaces support the operation of enterprise information technology equipment: office space, meeting space, and mechanical and other support facilities. For purposes of this subdivision, "computer software" includes, but is not limited to, software utilized or loaded at a qualified data center or qualified refurbished data center, including maintenance, licensing, and software customization.

(d) For purposes of this subdivision, a "qualified refurbished data center" means an existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but that is comprised of one or more buildings that consist in the aggregate of at least 25,000 square feet, and that are located on a single parcel or contiguous parcels, where the total cost of construction or refurbishment, investment in enterprise information technology equipment, and computer software is at least $50,000,000 within a 24-month period.

(e) For purposes of this subdivision, "enterprise information technology equipment" means computers and equipment supporting computing, networking, or data storage, including servers and routers. It includes, but is not limited to: cooling systems, cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution, or management of electricity used for the maintenance and operation of a qualified data center or qualified refurbished data center, including but not limited to exterior dedicated business-owned substations, backup power generation systems, battery systems, and related infrastructure; and racking systems, cabling, and trays, which are necessary for the maintenance and operation of the qualified data center or qualified refurbished data center.

(f) A qualified data center or qualified refurbished data center may claim the exemptions in this subdivision for purchases made either within 20 years of the date of its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.

(g) The purpose of this exemption is to create jobs in the construction and data center industries.

(h) This subdivision is effective for sales and purchases made before July 1, 2042.

(i) The commissioner of employment and economic development must certify to the commissioner of revenue, in a format approved by the commissioner of revenue, when a qualified data center has met the requirements under paragraph (c) or a qualified refurbished data center has met the requirements under paragraph (d). The certification must provide the following information regarding each qualified data center or qualified refurbished data center:

(1) the total square footage amount;

(2) the total amount of construction or refurbishment costs and the total amount of qualifying investments in enterprise information technology equipment and computer software;

(3) the beginning and ending of the applicable period under either paragraph (c) or (d) in which the qualifying expenditures and purchases under clause (2) were made, but in no case shall the period begin before July 1, 2012; and

(4) the date upon which the qualified data center first met the requirements under paragraph (c) or a qualified refurbished data center first met the requirements under paragraph (d).

(j) Any refund for sales tax paid on qualifying purchases under this subdivision must not be issued unless the commissioner of revenue has received the certification required under paragraph (i) issued by the commissioner of employment and economic development.

(k) The commissioner of employment and economic development must annually notify the commissioner of revenue of the qualified data centers that are projected to meet the requirements under paragraph (c) and the qualified refurbished data centers that are projected to meet the requirements under paragraph (d) in each of the next four years. The notification must provide the information required under paragraph (i), clauses (1) to (4), for each qualified data center or qualified refurbished data center.

Subd. 46.

Amenities included with the privilege of admission.

(a) The sale of amenities, including but not limited to food and beverages, parking services, and promotional items, that are included in the sales price of the privilege of admission to athletic events and places of amusement under section 297A.61, subdivision 3, paragraph (m), are exempt when sold by a seller of the privilege of admission that is a professional sports team competing in Major League Baseball, Major League Soccer, the National Basketball Association, the Women's National Basketball Association, the National Football League, or the National Hockey League.

(b) Under this subdivision, the exempt portion of the sale of the privilege of admission is equal to the purchase price of the amenity if sales or use tax was paid on the amenity when purchased by the seller.

(c) The seller must retain records documenting the price and tax paid by the seller when purchasing the amenities and the price and tax collected when the seller sells the privilege of admission.

(d) This subdivision expires July 1, 2030.