1.1 	A bill for an act
1.2 	relating to taxation; sales and use; providing an exemption for certain purchases 
1.3 	by nonprofit all-terrain vehicle clubs;amending Minnesota Statutes 2022, section 
1.4 	297A.70, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2022, section 297A.70, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 22.Nonprofit all-terrain vehicle clubs; machinery, equipment, parts, and 
1.9 	supplies. (a) The following sales to an eligible nonprofit all-terrain vehicle club are exempt:
1.10 	(1) sales of tangible personal property, including grooming machines, attachments, other 
1.11 	associated accessories, and repair parts, that is used primarily and directly for the grooming 
1.12 	of state or grant-in-aid all-terrain vehicle trails; and
1.13 	(2) sales of materials and supplies used or consumed in, and equipment incorporated 
1.14 	into, the construction, reconstruction, maintenance, or improvement of state or grant-in-aid 
1.15 	all-terrain vehicle trails, completed by the all-terrain vehicle club.
1.16 	(b) A nonprofit all-terrain vehicle club is eligible for the exemption under this subdivision 
1.17 	if it received, in the current year or in the previous three-year period, a state grant-in-aid 
1.18 	maintenance and grooming grant administered by the Department of Natural Resources by 
1.19 	applying for the grant with a local unit of government sponsor.

1.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
1.21 	30, 2023.