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SF 1356

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:20am

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

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; expanding the definition of farm machinery;
exempting construction and other materials used in livestock farming operations;
amending Minnesota Statutes 2008, 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 2008, 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 begindryersdeleted text endnew 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 beginFarm machinery includes machinery for the maintenance of land in state or
federal agricultural programs.
new text end

new text begin (c) new text endFarm machinery does not include:

(1) repair or replacement parts;

(2) tools, shop equipment, deleted text begingrain 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
June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, 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,
including electricity, gas, or steam used for space heating, cooling, or lighting of deleted text beginfacilities
housing agricultural animals
deleted text endnew text begin 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 beginanddeleted 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.
Machinery, equipment, implements, tools, accessories, appliances, contrivances, and
furniture and fixtures, except those listed in this clausenew text begin,new text end are not included within this
exemptiondeleted text begin.deleted text endnew 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, 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
June 30, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, 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 beginfarmed cervidae, as defined in section
35.153, subdivision 3
deleted text endnew 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
June 30, 2009.
new text end