Minneslate Logo

HF2658 (Legislative Session 94 (2025-2026))

East Grand Forks; refundable sales and use tax exemption for construction materials provided.

Related bill: SF2795

AI Generated Summary

Purpose of the Bill

The bill aims to provide a tax advantage for construction projects in East Grand Forks, Minnesota. Specifically, it focuses on reducing costs for specific infrastructure projects by offering a financial incentive through a tax refund.

Main Provisions

  • The bill proposes a sales and use tax exemption on materials, supplies, and equipment used in certain construction projects in East Grand Forks.
  • This exemption applies to the Civic Center Sports Complex and the VFW Memorial Arena.
  • The tax exemption covers purchases made between November 30, 2025, and December 31, 2029.
  • While the initial sales tax is imposed and collected, it is later refunded as stipulated under existing Minnesota tax laws.

Significant Changes to Existing Law

  • This bill introduces a specific, time-bound tax exemption for select construction projects that is not part of the standing tax code, offering temporary financial relief for these specific projects.
  • It appropriates funds from the general fund to ensure the refunds are handled by the commissioner of revenue.

Relevant Terms

  • Tax exemption
  • Construction materials
  • Sales and use tax
  • Refundable exemption
  • Civic Center Sports Complex
  • VFW Memorial Arena
  • East Grand Forks

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 24, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specific construction project based refundable exemptions are introduced."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references applicable sales tax rates for exemptions related to construction projects.",
      "modified": [
        "References to the tax rate application within the context of new exemptions."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "A new project eligible for refunds under clause 17 is specified."
      ],
      "removed": [
        ""
      ],
      "summary": "This section outlines the refund procedures for certain sales and use tax exemptions.",
      "modified": [
        "Procedures for refunding collected sales tax in context of the specified project."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors