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HF2826 (Legislative Session 94 (2025-2026))

Independent School District No. 186, Pequot Lakes; refundable sales and use tax exemption provided for construction projects.

Related bill: SF3114

AI Generated Summary

Purpose of the Bill

The bill aims to provide a tax exemption for certain construction projects within Independent School District No. 186, located in Pequot Lakes, Minnesota.

Main Provisions

  • Sales Tax Exemption: The bill proposes a refundable exemption from sales and use tax for materials, supplies, and equipment used in construction projects. This includes new construction, reconstruction, upgrades, expansions, renovations, and remodeling of specified schools and facilities.
  • Eligible Projects: The exemption applies to projects at:
    • Eagle View Elementary School
    • Pequot Lakes Middle School
    • Pequot Lakes High School
    • Outdoor facilities improvements
  • Time Frame: Purchases are eligible for this exemption if made between January 1, 2026, and December 31, 2036.

Implementation and Refund Mechanism

  • The tax must initially be imposed and collected as if charged under Minnesota Statutes but is refundable.
  • The bill outlines that refunds will be managed similarly to existing statutory provisions, but applications for refunds must be made by the governmental entity overseeing the construction projects.

Financial Provisions

  • The necessary funds for these tax refunds will be appropriated from the general fund and managed by the commissioner of revenue.

Significant Changes

  • This bill introduces a targeted tax relief specifically for construction-related activities within a single public school district, which is a tailored application of the sales tax exemption laws as outlined in Minnesota Statutes.

Relevant Terms

sales tax exemption, construction materials, Independent School District No. 186, refundable tax exemption, general fund appropriation, Eagle View Elementary, Pequot Lakes Middle School, Pequot Lakes High School, outdoor facilities, construction projects

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section pertains to the imposition of sales and use tax, which this bill references for application and refund purposes.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the procedure for tax refunds for construction projects similar to those described in section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors