HF 4432 Summary

• Exempts all sales of electricity from Minnesota sales and use tax effective after June 30, 2020.

• Adds electricity as an exempt residential heating fuel for November through April billing months for residential customers who use it as their primary source of heat.

• Removes "electricity" from taxable items in industrial production exemptions, allowing electricity used in the production process to qualify for the materials exemption under specified conditions.

• Removes "electricity" from taxable items in production of certain taxable services, publications, and television commercials, making electricity exempt when used for production purposes beyond space heating and lighting.

• All amendments are effective for sales and purchases made after June 30, 2020.