SF 186

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to sales and use taxes; exempting construction and other materials used
in livestock farming operations; amending Minnesota Statutes 2006, section
297A.69, subdivisions 2, 3, 4.

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

Section 1.

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,
except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt
if (i) it is in excess of the average climate control or lighting for the production area, and
(ii) it is necessary to produce that particular product;

(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 product deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) interior crates, partitions, and grain bins 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 June 30, 2007.
new text end

Sec. 2.

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

Subd. 3.

Repair and replacement parts.

Repair and replacement parts deleted 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
June 30, 2007.
new text end

Sec. 3.

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 5 new 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
June 30, 2007.
new text end