Proposal would repeal data center tax exemption and aid reduction rule

The proposal would repeal the sales tax exemption for qualifying data center equipment and software. The repealed section covers qualifying data centers, large-scale data centers, and refurbished data centers in Minnesota. The bill text does not establish whether the exemption is currently available. The repeal would take effect July 1, 2026.

The proposal would repeal a rule directing possible reductions to special education aid. The rule concerns special education aid for the two-year budget period beginning July 1, 2027, and each later period until a state education budget is enacted for that period. The repealed rule calls for a reduction only to the extent savings from specified education budget changes fall short of $250 million for the two-year period. The repeal would take effect July 1, 2026. The rule applies to the period beginning July 1, 2027, and later periods until a budget is enacted.