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HF2638 (Legislative Session 94 (2025-2026))

Ramsey; sales and use tax exemption for construction materials modified.

Related bill: SF1981

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the tax exemption status for construction materials used in specific projects within the city of Ramsey, Minnesota. It focuses on enhancing financial support for infrastructure improvements by offering tax relief.

Main Provisions

  • Tax Exemption on Materials: The bill proposes an exemption from sales and use tax for materials and supplies used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a new water treatment plant and trunk water main improvements in the city of Ramsey.
  • Time Frame for Purchase: The materials and supplies must be purchased between January 1, 2023, and June 30, 2027, to qualify for this exemption.
  • Refund Process: Although the tax will initially be applied to these purchases, it will be refunded as per the procedures outlined in Minnesota Statutes section 297A.75. Refunds are available for purchases made between June 30, 2023, and June 30, 2027.

Significant Changes to Existing Law

The bill amends a previous law from 2023 by specifically extending and clarifying the sales tax exemption period for this project and ensuring a structured refund process is in place.

Relevant Terms

  • Tax exemption
  • Sales and use tax
  • Construction materials
  • City of Ramsey
  • Water treatment plant
  • Infrastructure projects
  • Refunds

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces criteria for refunds on sales tax for specific city projects."
      ],
      "removed": [
        ""
      ],
      "summary": "Adjusts tax exemptions for construction materials in the city of Ramsey under section 297A.62.",
      "modified": [
        "Clarifies the applicability of tax rates for refund purposes."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Additional criteria for considering tax rate adjustments."
      ],
      "removed": [
        ""
      ],
      "summary": "Extends adjustments to tax exemptions for construction materials using subdivision 1a.",
      "modified": [
        "Provides further guidance on tax rate applications for eligible projects."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [
        "Guidelines for tax refund issuance periods."
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to tax refund procedures for projects as outlined in section 297A.75.",
      "modified": [
        "Aligns refund conditions with amendments in tax exemption processing."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

Sponsors