HF 5258

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/04/2024 02:51pm

A bill for an act
relating to taxation; sales and use; modifying the exemption for telecommunications
or pay television services machinery and equipment; amending Minnesota Statutes
2022, section 297A.68, subdivision 35a.

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

Section 1.

Minnesota Statutes 2022, section 297A.68, subdivision 35a, is amended to read:

Subd. 35a.

Telecommunications or pay television services machinery and
equipment.

(a) Telecommunications or pay television services machinery and equipment
purchased or leased for use directly by a telecommunications or pay television services
provider deleted text begin primarily deleted text end in the provision of telecommunications or pay television services that
are ultimately to be sold at retail are exempt, regardless of whether purchased by the owner,
a contractor, or a subcontractor.

(b) For purposes of this subdivision, "telecommunications or pay television machinery
and equipment" includes, but is not limited to:

(1) machinery, equipment, and fixtures utilized in receiving, initiating, amplifying,
processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunications or pay television services, such as computers, transformers, amplifiers,
routers, bridges, repeaters, multiplexers, and other items performing comparable functions;

(2) machinery, equipment, and fixtures used in the transportation of telecommunications
or pay television services, such as radio transmitters and receivers, satellite equipment,
microwave equipment, fiber, conduit, and other transporting media, but not wire, cable, or
poles;

(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or enable
the machinery in clauses (1) and (2) to accomplish its intended function, such as auxiliary
power supply, test equipment, towers, heating, ventilating, and air conditioning equipment
necessary to the operation of the telecommunications or pay television equipment; and
software necessary to the operation of the telecommunications or pay television equipment;
and

(4) repair and replacement parts, including accessories, whether purchased as spare parts,
repair parts, or as upgrades or modifications to qualified machinery or equipment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2024.
new text end