MN HF1842

Amends Minnesota Statutes section 297A.68, subdivision 5 to allow small businesses to purchase capital equipment without upfront sales tax, rather than paying tax and seeking a refund.

Defines small businesses using section 645.445 standards and exempts their capital equipment purchases from the standard tax-and-refund process for manufacturing, fabricating, mining, and refining equipment.

Capital equipment exemption applies to machinery and equipment essential to integrated production processes, including research and development equipment, environmental control devices, and computer software used in production.

Effective date is June 30, 2012 for all sales and purchases covered under this exemption.