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MN HF2717
Bill
Status
5/21/2017
Primary Sponsor
Chris Swedzinski
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AI Summary
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Establishes a grain credit contract indemnity program administered by the commissioner to pay eligible producers up to $650,000 or 80 percent of amounts owed when licensed grain buyers breach voluntary extension of credit contracts.
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Increases bond requirements for licensed grain buyers, ranging from $10,000 to $600,000 depending on gross annual purchases, with compliance required by July 1, 2018 and phased in through July 1, 2019.
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Eliminates sales tax on grain bins by reclassifying them as farm machinery exempt from taxation, effective for sales after June 30, 2018.
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Imposes a 2.0 percent gross receipts tax on grain bin retailers beginning July 1, 2019, if the indemnity account falls below $2,000,000, with the tax expiring when the account reaches $6,000,000.
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Deposits $2,500,000 of general sales tax revenue into the indemnity account in fiscal year 2018, with up to $2,500,000 annually for fiscal years 2019-2020 until the account reaches $6,000,000.
Legislative Description
Grain credit contract indemnity program established, bond amounts increased for licensed grain buyers, portion of sales tax revenue derived from the sale of grain bins dedicated, sales tax eliminated on grain bins, gross receipts tax established for grain bins to fund the indemnity payments if program funding falls below a threshold amount, and money appropriated.
Last Action
Introduction and first reading, referred to Agriculture Policy
5/21/2017