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HF 158

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/16/2007
1st Engrossment Posted on 03/07/2007
Committee Engrossments
1st Committee Engrossment Posted on 02/23/2007

Current Version - 1st Engrossment

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A bill for an act
relating to sales and use taxes; expanding the definition of farm machinery;
exempting construction and other materials used in livestock farming operations;
amending Minnesota Statutes 2006, sections 297A.61, subdivision 12; 297A.69,
subdivisions 2, 3, 4.

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

Section 1.

Minnesota Statutes 2006, 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 deleted text begin dryersdeleted text end new text begin drying systems, grain bins,
other feed and forage storage bins and equipment, including silage bagging systems,
concrete bunkers and silos
new text end , 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) new text begin Farm machinery includes machinery for the maintenance of land in state or
federal agricultural programs.
new text end

new text begin (c) new text end 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
January 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 297A.69, subdivision 2, is amended to read:


Subd. 2.

Materials consumed in agricultural production.

Materials stored, used,
or consumed in agricultural production of personal property intended to be sold ultimately
at retail are exempt, whether or not the item becomes an ingredient or constituent part
of the property produced. Materials that qualify for this exemption include, but are not
limited to, the following:

(1) feeds, seeds, trees, fertilizers, and herbicides, including when purchased for use
by farmers in a federal or state farm or conservation program;

(2) materials sold to a veterinarian to be used or consumed in the care, medication,
and treatment of agricultural production animals and horses;

(3) chemicals, including chemicals used for cleaning food processing machinery
and equipment;

(4) materials, including chemicals, fuels, and electricity purchased by persons
engaged in agricultural production to treat waste generated as a result of the production
process;

(5) fuels, electricity, gas, and steam used or consumed in the production process,
deleted text begin except thatdeleted text end new text begin including new text end electricity, gas, or steam used for space heating, cooling, or lighting
deleted text begin is exemptdeleted text end deleted text begin if (i) it is in excess of the average climate control or lighting for the production
area, and
deleted text end deleted text begin (ii) it is necessary to produce that particular product;deleted text end new text begin of farm buildings and
lighting around farm buildings, except for heating, cooling, and lighting of residential
buildings;
new text end

(6) petroleum products and lubricants;

(7) packaging materials, including returnable containers used in packaging food and
beverage products; deleted text begin and
deleted text end

(8) accessory tools and equipment that are separate detachable units with an ordinary
useful life of less than 12 months used in producing a direct effect upon the productdeleted text begin .deleted text end new text begin ;
new text end

new text begin (9) interior crates, partitions, calf hutches, cow mats and mattresses, and syringes
and needles for livestock as defined in section 17A.03, subdivision 5; and
new text end

new text begin (10) building materials used in construction of buildings and interior and exterior
housing and containment facilities for livestock, as defined in section 17A.03, subdivision
5.
new text end

Machinery, equipment, implements, tools, accessories, appliances, contrivances, and
furniture and fixtures, except those listed in this clause are not included within this
exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with sales and purchases
made after January 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 297A.69, subdivision 3, is amended to read:


Subd. 3.

Repair and replacement parts.

Repair and replacement partsdeleted text begin , except tires,deleted text end
used for maintenance or repair of farm machinery, logging equipment, and aquaculture
production equipment are exempt, if the part replaces a machinery part assigned a specific
or generic part number by the manufacturer of the machinery.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
January 1, 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 297A.69, subdivision 4, is amended to read:


Subd. 4.

Machinery, equipment, and fencing.

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 deleted text begin farmed cervidae, as defined in section
35.153, subdivision 3
deleted text end new text begin livestock as defined in section 17A.03, subdivision 5new text end ;

(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; and

(5) aquaculture production equipment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
January 1, 2007.
new text end