Farm Equipment Repair Tax

Effective July 1, 2013, Minnesota farmers have started seeing bigger equipment repair bills. As part of the new tax legislation that was adopted this May, labor for repairs and maintenance of farm equipment is taxable. However, the replacement parts themselves remain nontaxable for farmers.

Governor Dayton has heard the complaints from the farm community. At a recent agriculture expo, the governor called for a repeal of the repair tax in a special session. Repeal of the tax could even be retroactive. In the meantime, however, farmers and farm-equipment-repair shops will need to work with the tax.

UPDATE: the farm equipment repair tax was repealed effective April 1, 2014, but was not retroactive.

About mnfarmbusinesslaw

I am an attorney in Rochester, Minnesota, practicing in the areas of estate planning, probate, and business and farm law.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s