MN HF2609

Exempts most purchases by nursing homes licensed under Minnesota Statutes section 144A.02 and boarding care homes certified as nursing facilities under federal law from sales and use taxation.

Eligibility requires facilities to be exempt from federal income taxation under Internal Revenue Code section 501(c)(3) and either participate in medical assistance programs or certify they do not discharge residents due to inability to pay.

Excludes from exemption: building and construction materials under lump-sum contracts, construction materials for facilities not principally used by the tax-exempt entity, lodging, prepared food, candy, soft drinks, and alcoholic beverages.

Allows exemption for motor vehicle leasing only for trucks, buses, or passenger automobiles designed for more than nine persons when intended primarily for transporting property or residents.

Effective date is June 30, 2012.