Purpose of the Bill

The bill aims to support redevelopment efforts in the city of St. Cloud, Minnesota by providing financial incentives for construction projects within specified redevelopment districts.

Main Provisions

• Sales and Use Tax Exemption: The bill offers a refundable exemption on sales and use taxes for materials, supplies, and equipment incorporated into private redevelopment projects located within designated catalyst sites in St. Cloud. The exemption is contingent upon the redeveloped properties being subject to property taxes.
• Eligible Locations: The exemption applies to specifically identified parcels in Stearns and Benton Counties known as catalyst sites, including areas such as the "Lady Slipper Catalyst Site" and "Former Herberger's" among others.
• Refund Process: Those eligible for the exemption, typically the property owner or developer, must apply for a refund on the taxes paid for these materials. The application should include sufficient documentation for verification by the commissioner of revenue, especially if taxes were initially paid by a contractor or builder.

Significant Changes

• Timeframe: The tax exemption and refund program is available for sales and purchases made between July 1, 2025, and December 31, 2040, providing a long-term incentive for redevelopment efforts.
• Appropriation Cap: There is a cap on the total refunds issued, with a maximum of $13,000,000 allocated from the general fund. Refunds will be processed in order of application receipt, ensuring a first-come, first-served basis up to the appropriation limit.

Relevant Terms

• Sales and use tax exemption
• Redevelopment district
• St. Cloud catalyst sites
• Refundable tax credit
• Property taxes
• General fund appropriation