ST. PAUL – Volunteer fire departments would largely benefit from legislation being sponsored by State Representative Greg Davids (R-Preston), as it would allow emergency equipment purchases to be tax exempt.
Davids said a city’s purchase of a firetruck or ambulance is currently tax exempt, but most other equipment for those departments is not.
“That creates a situation where state government is taxing local government,” Davids said. “The local government than responds by raising taxes on property owners to pay for the emergency equipment purchases. By making this change we should see property tax reductions at the local level.”
Davids’ bill would grant volunteer fire departments the same sales tax exemption as municipal fire departments. It also exempts all accessories, equipment, and supplies used to equip, supply, or resupply an ambulance or first responder vehicle.
If signed into law, Davids’ bill would be effective on sales and purchases made after June 30, 2019.
Davids’ legislation was held over for possible inclusion in a more comprehensive taxes plan that will be unveiled later this session.