MN SF1063

Adds a new exemption to Minnesota sales and use tax for fiber and conduit purchased or leased by broadband or Internet service providers for direct use in providing broadband or Internet access services sold at retail.

Exemption applies retroactively to sales and purchases made after July 1, 2017.

Broadband and Internet service providers may request refunds for taxes paid on qualifying purchases made after July 1, 2017 and before July 1, 2023, with refund applications due by December 31, 2023.

If tax was paid by a contractor, subcontractor, or builder, they must provide the service provider with a statement showing the cost of exempt items and taxes paid to support the refund claim.

Appropriates sufficient funds from the general fund to the commissioner to pay approved refunds, with refund procedures governed by existing Minnesota Statutes section 297A.75, subdivision 4.