Sales and use tax exemption for data centers repeal

SF 3265 repeals a sales and use tax exemption for data centers in Minnesota. It removes the provision that previously allowed data center operators to avoid paying sales tax on enterprise information technology equipment and computer software used in qualified data centers. This change means data center businesses will now pay the standard sales tax on these items starting July 1, 2025. The bill directly affects data center operators who previously qualified for this exemption under Minnesota Statutes 2024, section 297A.68, subdivision 42.