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HF1529 (Legislative Session 94 (2025-2026))

Woodbury; refundable sales and use tax exemption provided for construction materials for certain projects.

Related bill: SF13

AI Generated Summary

This bill proposes a sales and use tax exemption for construction materials, supplies, and equipment used in specific infrastructure projects in the city of Woodbury, Minnesota. Specifically, it applies to the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the city's water treatment facility, water tower, water pipeline infrastructure, and associated improvements.

Key Provisions:

  1. Eligibility:

    • The exemption applies to materials, supplies, and equipment that are purchased between February 1, 2024, and November 30, 2028.

  2. Refund Process:

    • Taxes will still be collected at the standard sales and use tax rate under Minnesota Statutes chapter 297A.
    • After taxes are collected, purchasers can receive a refund following the process outlined in Minnesota Statutes section 297A.75.
    • Refunds for eligible purchases will not be issued until after June 30, 2025.

  3. Appropriation of Funds:

    • The Minnesota general fund will allocate the necessary funds to pay out the refunds.
    • The commissioner of revenue will be responsible for administering the refund process.

Purpose:

This bill aims to reduce the cost of essential municipal water infrastructure projects in Woodbury by offsetting sales tax expenses on construction materials. The tax exemption is structured as a refund system, ensuring that taxes are initially collected but later reimbursed.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 25, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
February 25, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specification for new tax exemption for construction materials in Woodbury."
      ],
      "removed": [],
      "summary": "The bill addresses the application of tax rates related to sales and use tax exemptions.",
      "modified": [
        "Clarifies tax calculation and refund processing for specific exemptions."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies the refund process for sales and use tax exempted construction materials.",
      "modified": [
        "Details on refund issuance timing and eligibility criteria adjustment."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

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