MN HF2688

Eliminates the tax-and-refund process for capital equipment purchases by allowing the exemption to be applied directly at the time of purchase rather than requiring collection and subsequent refund.

Removes capital equipment from the list of items in section 297A.75, subdivision 1, where tax must be imposed and collected before a refund is issued.

Renumbers remaining exempt items in the tax refund provisions to reflect the removal of capital equipment from the collect-and-refund system.

Maintains all existing definitions and qualifications for what constitutes capital equipment under Minnesota Statutes section 297A.68, subdivision 5.

Effective for sales and purchases made after June 30, 2013.