Grain bins and related construction material, supplies and tractor tires sales and use tax exemption

2025-2026 Regular Session Introduced by Gary Dahms and 3 co-sponsors

Establishes a Minnesota sales and use tax exemption for grain bins, related construction materials, installation supplies, and tractor tires used in farming operations.

Author added Nelson

#agricultureandagriculturedepartment #taxation #taxation-salesanduse

Overview

SF 1541 proposes a sales and use tax exemption in Minnesota for grain bins and certain related materials and tires. The bill appears to target agricultural equipment and supplies, aiming to reduce the tax burden on farmers and agricultural operations purchasing grain storage infrastructure and related items. The companion House bill is HF 978. The bill’s author is listed as Nelson.

Introduced: February 17, 2025

Status: Introduction and first reading; referred to the Senate Tax Committee

Legislative actions:

2025-02-17: Introduction and first reading; referred to Taxes
2025-03-17: Author added Nelson

Related: HF 978 (companion)

What the bill would do

Establish a sales and use tax exemption in Minnesota for:

Grain bins (including components and construction materials used to install or assemble them)
Related construction materials and supplies used in the installation, maintenance, or operation of grain bins
Tractor tires used in farming operations

The exemption would apply to purchases made for use in agricultural production within Minnesota (i.e., farm operations).

Key provisions and considerations (as implied by the title)

Scope of exemption:

Likely applies to retail sales and potentially to use tax on purchases of grain bins and associated materials and tires.

Definitions:

The bill would define terms such as “grain bins,” “related construction materials,” “supplies,” and “tractor tires” for purposes of the exemption.

Administration:

The Minnesota Department of Revenue would administer the exemption, including guidance to retailers and purchasers.

Effective date:

The bill text would specify when the exemption takes effect (e.g., upon enactment or a phased/retroactive date). This summary notes that such timing details are contained in the bill language and are not provided here.

Sunset or continuation:

Any sunset provision or review mechanism would be defined in the bill; not specified in the information available.

Who would be affected

Primary beneficiaries:

Minnesota farmers and agricultural producers purchasing grain bins, installation materials, supplies, and tractor tires.

Secondary beneficiaries:

Retailers, equipment dealers, and contractors supplying grain bins, installation materials, and tires to agricultural customers.

Potential fiscal and policy impact

Revenue impact:

The exemption would reduce taxable sales and use tax collections attributable to grain bins, construction materials, supplies, and tractor tires. The magnitude depends on purchase volumes and current tax bases.

Administrative impact:

Requires guidance and conformity by the Department of Revenue to define terms, eligibility, and documentation.

Next steps

If enacted, SF 1541 would proceed through the Senate Taxes committee and, if advanced, to the full Senate for consideration.

The companion HF 978 in the House would undergo similar committee process.

Stakeholders likely include farmers, agricultural suppliers, grain bin manufacturers/retailers, and construction contractors.

Note: Specific statutory language, definitions, effective dates, and any sunset provisions would be found in the bill text and accompanying fiscal notes.

Bill