1.1                          A bill for an act 
  1.2             relating to taxation; sales and use; including 
  1.3             machinery used to produce certain plants and nursery 
  1.4             stock in the definition of farm machinery; amending 
  1.5             Minnesota Statutes 1998, section 297A.01, subdivision 
  1.6             15. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 297A.01, 
  1.9   subdivision 15, is amended to read: 
  1.10     Subd. 15.  "Farm machinery" means new or used machinery, 
  1.11  equipment, implements, accessories, and contrivances used 
  1.12  directly and principally in the production for sale, but not 
  1.13  including the processing, of livestock, dairy animals, dairy 
  1.14  products, poultry and poultry products, fruits, vegetables, 
  1.15  flowering or ornamental plants including nursery stock, forage, 
  1.16  grains and bees and apiary products.  "Farm machinery"  includes:
  1.17     (1) machinery for the preparation, seeding or cultivation 
  1.18  of soil for growing agricultural crops and sod, harvesting and 
  1.19  threshing of agricultural products, harvesting or mowing of sod, 
  1.20  and certain machinery for dairy, livestock and poultry farms; 
  1.21     (2) barn cleaners, milking systems, grain dryers, automatic 
  1.22  feeding systems and similar installations, whether or not the 
  1.23  equipment is installed by the seller and becomes part of the 
  1.24  real property; 
  1.25     (3) irrigation equipment sold for exclusively agricultural 
  1.26  use, including pumps, pipe fittings, valves, sprinklers and 
  2.1   other equipment necessary to the operation of an irrigation 
  2.2   system when sold as part of an irrigation system, whether or not 
  2.3   the equipment is installed by the seller and becomes part of the 
  2.4   real property; 
  2.5      (4) logging equipment, including chain saws used for 
  2.6   commercial logging; 
  2.7      (5) fencing used for the containment of farmed cervidae, as 
  2.8   defined in section 17.451, subdivision 2; 
  2.9      (6) primary and backup generator units used to generate 
  2.10  electricity for the purpose of operating farm machinery, as 
  2.11  defined in this subdivision, or providing light or space heating 
  2.12  necessary for the production of livestock, dairy animals, dairy 
  2.13  products, or poultry and poultry products; and 
  2.14     (7) aquaculture production equipment as defined in 
  2.15  subdivision 19; and 
  2.16     (8) the following machinery used in the production for sale 
  2.17  of flowering or ornamental plants:  green houses, shade houses, 
  2.18  fertilizer injectors, heaters, boilers, shade systems, vents and 
  2.19  vent motors, environmental controls, cooling systems, exhaust 
  2.20  fans, fog systems, circulation fans, crop lighting, soil mixers, 
  2.21  transplanters, and conveyors.  
  2.22     Repair or replacement parts for farm machinery shall not be 
  2.23  included in the definition of farm machinery.  
  2.24     Tools, shop equipment, grain bins, feed bunks, fencing 
  2.25  material except fencing material covered by clause (5), 
  2.26  communication equipment and other farm supplies shall not be 
  2.27  considered to be farm machinery.  "Farm machinery" does not 
  2.28  include motor vehicles taxed under chapter 297B, snowmobiles, 
  2.29  snow blowers, lawn mowers except those used in the production of 
  2.30  sod for sale, garden-type tractors or garden tillers and the 
  2.31  repair and replacement parts for those vehicles and machines. 
  2.32     Sec. 2.  [EFFECTIVE DATE.] 
  2.33     Section 1 is effective for sales and purchases occurring 
  2.34  after June 30, 2000.