HF4331 (Legislative Session 94 (2025-2026))
Lawn care services removed from the tax base.
Related bill: SF4425
AI Generated Summary
Purpose
- Remove certain lawn care services from the sales tax base, making them non-taxable.
Main Provisions
- Amends Minnesota Statutes to change what counts as a sale or purchase for tax purposes, specifically narrowing the list of taxable services.
- The bill would remove lawn care services (fertilizing, mowing, spraying, sprigging, garden maintenance, tree/shrub pruning and related care, and indoor plant care) from the set of services that are subject to sales tax.
- The bill repeals Minnesota Statutes 2024 sections 297A.67 subdivision 25 and 297A.68 subdivision 40 as part of implementing the change.
- The bill retains many other taxable items and services (e.g., admission to places of amusement, lodging, nonresidential parking, laundry/dry cleaning, pet grooming, detective/security services, etc.), but explicitly excludes lawn care from the taxable list.
- The bill continues to define sale and purchase to include a wide range of other property and services, including digital products, telecommunications services, and installation or delivery in other contexts.
Changes to Existing Law
- Alters the scope of what is considered a taxable service by removing lawn care-related services from the taxable category.
- Repeals two existing statutory provisions (297A.67 subd. 25 and 297A.68 subd. 40) that intersect with the current tax base and service definitions.
- Keeps the broader framework for sales tax on other tangible property and services, including many digital, telecommunications, and other service categories, intact.
Economic/Tax Impact (Note)
- By removing lawn care services from taxation, state and local tax revenue related to those services would be reduced.
- Consumers and lawn care providers would see changes in pricing and compliance requirements related to sales tax collection.
Summary of Key Concepts (for quick reference)
- sale and purchase; tangible personal property; retail sale
- taxable services; lawn care fertilizing mowing spraying sprigging; garden maintenance; tree/shrub pruning
- prewritten computer software; digital products; installation; telecommunications
- places of amusement; lodging; parking; laundry/dry cleaning; pet grooming; detective/security
Relevant Terms - lawn care services - tax base - taxable services - sale and purchase - tangible personal property - digital products - prewritten computer software - installation - admission to places of amusement - lodging - nonresidential parking - laundry and dry cleaning - pet grooming - lawn care fertilizing mowing spraying sprigging - garden maintenance - tree and shrub pruning - repeal (297A.67 subd. 25; 297A.68 subd. 40)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends sale and purchase definitions under the sales and use tax for Minnesota, relating to the taxable services listed.",
"modified": [
"Redefines the scope of taxable services within the sale and purchase definition."
]
},
"citation": "Minnesota Statutes 2024 section 297A.61 subdivision 3",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [
"297A.67 subdivision 25"
],
"summary": "The bill repeals Minnesota Statutes 2024 section 297A.67 subdivision 25.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 297A.67 subdivision 25",
"subdivision": "subdivision 25"
},
{
"analysis": {
"added": [],
"removed": [
"297A.68 subdivision 40"
],
"summary": "The bill repeals Minnesota Statutes 2024 section 297A.68 subdivision 40.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 297A.68 subdivision 40",
"subdivision": "subdivision 40"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal law (26 U.S.C. §1504) in defining treatment of affiliated groups for purposes of the bill's tax provisions.",
"modified": []
},
"citation": "United States Code title 26 section 1504",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites federal law (26 U.S.C. §1504(b)) related to exclusions referenced in the bill.",
"modified": []
},
"citation": "United States Code title 26 section 1504b",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 297A.669 in defining telecommunications services.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 297A.669",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill uses 59B.02, subd. 11, related to service contracts.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 59B.02 subdivision 11",
"subdivision": "subdivision 11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 626.84, subd. 1, concerning peace officer authority and surveillance provisions.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 626.84 subdivision 1",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 295.81, subd. 1, paragraph r, defining a taxable cannabis product.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 295.81 subdivision 1 paragraph r",
"subdivision": "subdivision 1, paragraph r"
}
]Progress through the legislative process
In Committee