Minnesota SF 5231: Data centers tax exemption repeal; contingent reduction in special education aid appropriation repeal

Status: Author added Boldon (as of 2026-04-28)
State: Minnesota · Session: 2025-2026 · Bill: SF 5231
Subjects: Education and Education Department, Taxation-Sales and Use, Telecommunications and Information Technology
Sponsors: Maye Quade, Boldon
Bill Text

1.1 A bill for an act
1.2 relating to taxation; sales and use; repealing the exemption for data centers;
1.3 repealing the contingent reduction in special education aid appropriations; amending
1.4 Minnesota Statutes 2024, section 216B.02, by adding a subdivision; Minnesota
1.5 Statutes 2025 Supplement, sections 216B.02, subdivision 12; 297A.75, subdivisions
1.6 1, 2, 3; repealing Minnesota Statutes 2025 Supplement, section 297A.68,
1.7 subdivision 42; Laws 2025, First Special Session chapter 10, article 7, section 8.
1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2025 Supplement, section 216B.02, subdivision 12, is
1.10 amended to read:
1.11 Subd. 12.Qualified large-scale data center."Qualified large-scale data center" has the
1.12 meaning given in section 297A.68, subdivision 42, paragraph (e). means a facility in
1.13 Minnesota:
1.14 (1) that is comprised of one or more buildings connected to each other by fiber and
1.15 associated equipment that consist in the aggregate of at least 25,000 square feet, and that
1.16 are located in one physical location or multiple locations; and
1.17 (2) for which the total cost of construction or refurbishment, investment in enterprise
1.18 information technology equipment, and computer software is at least $250,000,000
1.19 collectively by the facility and its tenants within a 60-month period beginning after June
1.20 30, 2025.
1.21 EFFECTIVE DATE.This section is effective July 1, 2026.
1Section 1.
26-08520 as introduced04/22/26 REVISOR EAP/BH
SENATE
STATE OF MINNESOTA
S.F. No. 5231NINETY-FOURTH SESSION
(SENATE AUTHORS: MAYE QUADE and Boldon)
OFFICIAL STATUSD-PGDATE
Introduction and first reading917604/27/2026
Referred to Taxes
Author added Boldon920104/28/2026

2.1 Sec. 2. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
2.2 read:
2.3 Subd. 13.Enterprise information technology equipment."Enterprise information
2.4 technology equipment" means computers and equipment supporting computing, networking,
2.5 or data storage, including servers and routers necessary for the maintenance and operation
2.6 of the qualified large-scale data centers.
2.7 EFFECTIVE DATE.This section is effective July 1, 2026.
2.8 Sec. 3. Minnesota Statutes 2025 Supplement, section 297A.75, subdivision 1, is amended
2.9 to read:
2.10 Subdivision 1. Tax collected.The tax on the gross receipts from the sale of the following
2.11 exempt items must be imposed and collected as if the sale were taxable and the rate under
2.12 section 297A.62, subdivision 1, applied. The exempt items include:
2.13 (1) building materials for an agricultural processing facility exempt under section
2.14 297A.71, subdivision 13;
2.15 (2) building materials for mineral production facilities exempt under section 297A.71,
2.16 subdivision 14;
2.17 (3) building materials for correctional facilities under section 297A.71, subdivision 3;
2.18 (4) building materials used in a residence for veterans with a disability exempt under
2.19 section 297A.71, subdivision 11;
2.20 (5) elevators and building materials exempt under section 297A.71, subdivision 12;
2.21 (6) materials and supplies for qualified low-income housing under section 297A.71,
2.22 subdivision 23;
2.23 (7) materials, supplies, and equipment for municipal electric utility facilities under
2.24 section 297A.71, subdivision 35;
2.25 (8) equipment and materials used for the generation, transmission, and distribution of
2.26 electrical energy and an aerial camera package exempt under section 297A.68, subdivision
2.27 37;
2.28 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
2.29 (a), clause (10);
2.30 (10) materials, supplies, and equipment for construction or improvement of projects and
2.31 facilities under section 297A.71, subdivision 40;
2Sec. 3.
26-08520 as introduced04/22/26 REVISOR EAP/BH

3.1 (11) enterprise information technology equipment and computer software for use in a
3.2 qualified data center, qualified large-scale data center, or qualified refurbished data center
3.3 exempt under section 297A.68, subdivision 42;
3.4 (12) (11) materials, supplies, and equipment for qualifying capital projects under section
3.5 297A.71, subdivision 44, paragraphs (a) and (b);
3.6 (13) (12) items purchased for use in providing critical access dental services exempt
3.7 under section 297A.70, subdivision 7, paragraph (c);
3.8 (14) (13) items and services purchased under a business subsidy agreement for use or
3.9 consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
3.10 44;
3.11 (15) (14) building materials, equipment, and supplies for constructing or replacing real
3.12 property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
3.13 (16) (15) building materials, equipment, and supplies for qualifying capital projects
View Minnesota SF 5231 on LegisTrack → — full text, sponsors, votes, campaign finance, and cross-state matches.