MN SF5334

Modifies Minnesota Statutes 2022, section 297A.68, subdivision 35a to expand the sales and use tax exemption for telecommunications and pay television services machinery and equipment.

Removes the word "primarily" from the exemption requirement, making the exemption apply to machinery and equipment used "in the provision of" telecommunications or pay television services that are ultimately sold at retail.

Explicitly includes four categories of exempt equipment: (1) receiving, processing, and transmitting machinery such as computers, routers, and amplifiers; (2) transportation equipment such as radio transmitters, satellite equipment, and fiber conduit, but excludes wire, cable, and poles; (3) ancillary equipment including power supply, test equipment, towers, HVAC systems, and necessary software; and (4) repair and replacement parts including accessories and upgrades.

Applies to equipment purchased or leased by the owner, contractor, or subcontractor.

Effective for sales and purchases made after June 30, 2024.