MN SF455

Creates a new sales and use tax exemption for nonprofit physical rehabilitation clinics providing physical therapy, occupational therapy, or speech therapy services

Qualifying clinics must be 501(c)(3) organizations with at least 50% of patients covered by Medical Assistance or MinnesotaCare, and no more than 15% covered by private health insurance

Clinics must provide at least 10,000 patient encounters annually with uninsured patients or those qualifying for Medical Assistance, MinnesotaCare, or home and community-based services programs, and must offer a sliding scale for payment

Exemption applies to items used in providing outpatient rehabilitation services, with exclusions for building materials purchased through lump-sum contracts, motor vehicle leases, prepared food, and purchases by affiliated facilities not operating as the clinic

Effective for sales and purchases made after June 30, 2025