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HF2823 (Legislative Session 94 (2025-2026))

Independent School District No. 561, Goodridge; refundable sales and use tax exemption provided for construction materials for certain projects.

Related bill: SF3076

AI Generated Summary

Purpose of the Bill

The bill aims to provide a sales and use tax exemption for construction materials used in specific projects within the Independent School District No. 561 in Goodridge, Minnesota.

Main Provisions

  • Tax Exemption: The bill provides a refundable sales and use tax exemption for materials, supplies, and equipment used in constructing or renovating school facilities in Goodridge.
  • Eligible Projects: The exemption applies to renovations of prekindergarten through grade 12 school buildings and the construction of various facilities, including a new gymnasium, commons, classrooms, locker rooms, restrooms, a weight room, a career and technical education classroom, and a secure front entrance.
  • Exemption Period: Purchases must be made after December 31, 2024, and before January 1, 2027, to qualify for the exemption.
  • Refund Process: Although taxes are initially collected as usual, they are refunded according to procedures outlined in Minnesota Statutes section 297A.75, with the condition that the applicant must be the governmental entity managing or contracting the project.
  • Refund Timing: Eligible tax refunds will only be processed after June 30, 2025.

Significant Changes to Existing Law

  • This bill introduces a specific tax refund process for certain school construction projects, which adds a layer of financial support through tax reimbursement for the district involved.

Relevant Terms

construction materials, tax exemption, refundable, sales and use tax, Independent School District No. 561, Goodridge, renovation, gymnasium, classroom, refund, Minnesota Statutes, career and technical education.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the imposition and collection of sales tax rates under section 297A.62.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill outlines the process for refunding sales taxes, referencing the procedure in section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors