Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 1670 - Small Business Capital Equipment Sales Tax Exemption at Time of Purchase
 
Author: Senator Amy T. Koch
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 5, 2012



 

 

Under current law, sales tax on capital equipment purchases must be paid upfront and then refunded.  This bill adds language allowing a capital equipment sales tax exemption at the time of purchase for small businesses. 

As defined under current law, a “small business” is a for-profit entity that:

  • is not an affiliate or subsidiary of a business dominant in its field of operation;
  • has 20 or fewer full-time employees; and
  • has not had more than the equivalent of $1,000,000 in annual gross revenues or, if the business is a technical or professional service, has not had more than the equivalent of $2,500,000 in annual gross revenues in the preceding fiscal year.

This bill is effective for sales and purchases made after June 30, 2012.

NBP:dv

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 03/05/2012
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn