HF 3307

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/14/2022 03:56pm

A bill for an act
relating to taxation; sales and use; modifying the definition for the exemption of
farm machinery to include fencing material; providing an exemption for certain
construction materials for farm fencing material; amending Minnesota Statutes
2020, sections 297A.61, subdivision 12; 297A.71, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, 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 dryers, feeding systems including stationary
feed bunks, new text begin fencing material, new text end 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) Farm machinery does not include:

(1) repair or replacement parts;

(2) tools, shop equipment, grain bins, deleted text begin fencing material, deleted text end 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 retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to
read:

new text begin Subd. 54. new text end

new text begin Building materials; farm fencing material. new text end

new text begin Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of farm
fencing material that is not exempt under section 297A.61, subdivision 12, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end