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SF345 (Legislative Session 94 (2025-2026))

Nonprofit bird preservation organizations sales and use tax exemption authorization

Related bill: HF1687

AI Generated Summary

Purpose

  • Establishes a sales tax exemption for purchases by a nonprofit bird preservation organization that are used in Minnesota to develop, preserve, restore, or maintain habitats for waterfowl, pheasants, or quail.

Who qualifies

  • A nonprofit bird preservation organization is defined as a nonprofit whose primary purpose is to support the life cycle of waterfowl, pheasants, or quail through habitat-related activities in Minnesota and that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

What is exempt

  • The exemption applies to sales of items purchased for use in Minnesota to develop, preserve, restore, or maintain habitats for waterfowl, pheasants, or quail.

What is not exempt (significant exclusions)

  • Building construction or reconstruction materials purchased by a contractor or subcontractor under a lump-sum contract or similar contract with a guaranteed maximum price for use in constructing, altering, or repairing a building or facility used by the qualifying organization.
  • Lodging (as defined in the statute).
  • Prepared foods, candy, and soft drinks.
  • Taxable cannabis products and alcoholic beverages.
  • Leasing of a motor vehicle.

Significance / impact

  • Creates a targeted sales tax exemption to support habitat-related work by qualified nonprofit bird organizations, while drawing clear boundaries on what types of purchases do not qualify (notably construction materials for facilities, lodging, food items, cannabis, alcohol, and vehicle leases).

Relevant terms

  • waterfowl
  • habitat
  • pheasants
  • quail
  • nonprofit bird preservation organization
  • 501(c)(3)
  • exemption
  • Minnesota
  • Sales tax
  • Minnesota Statutes 2024 section 297A70
  • Subdivision 22
  • building construction materials
  • lump-sum contract
  • guaranteed maximum price
  • contractor
  • subcontractor
  • lodging
  • prepared foods
  • candy
  • soft drinks
  • taxable cannabis products
  • alcoholic beverages
  • leasing of a motor vehicle

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 21, 2025SenateActionIntroduction and first reading
January 21, 2025SenateActionReferred toTaxes
January 30, 2025SenateActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds Subd. 22 providing exemption for nonprofit bird preservation organizations for specified habitat-related purchases."
      ],
      "removed": [],
      "summary": "Adds Subd. 22 to Minnesota Statutes 2024 section 297A70 establishing a sales tax exemption for nonprofit bird preservation organizations for purchases used to develop, preserve, restore, or maintain waterfowl, pheasant, or quail habitats in Minnesota, with listed exclusions (building materials under a lumpsum/guaranteed maximum price contract, lodging, prepared foods, taxable cannabis products, alcoholic beverages, and leasing of a motor vehicle).",
      "modified": []
    },
    "citation": "Minnesota Statutes 2024 section 297A70",
    "subdivision": "Subd. 22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Notes that the nonprofit bird preservation organization is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.",
      "modified": []
    },
    "citation": "26 U.S.C. § 501(c)(3)",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Uses the lodging definition from 297A61, subd. 3, par. g, cls. 2 to determine eligibility; the bill does not enact changes to 297A61 itself.",
      "modified": []
    },
    "citation": "Minnesota Statutes 2024 section 297A61",
    "subdivision": "subd. 3, paragraph g, clause 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 'taxable cannabis products' as defined in 295.81, subd. 1, par. r for purposes of the exemption; the bill does not modify 295.81.",
      "modified": []
    },
    "citation": "Minnesota Statutes 2024 section 295.81",
    "subdivision": "subd. 1, paragraph r"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 'alcoholic beverages' as defined in 297A67, subd. 2 for purposes of the exemption; the bill does not modify 297A67.",
      "modified": []
    },
    "citation": "Minnesota Statutes 2024 section 297A67",
    "subdivision": "subd. 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 'leasing of a motor vehicle' as defined in 297B01, subd. 11 for purposes of the exemption; the bill does not modify 297B01.",
      "modified": []
    },
    "citation": "Minnesota Statutes 2024 section 297B01",
    "subdivision": "subd. 11"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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