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HF3083 (Legislative Session 94 (2025-2026))

Brooklyn Park; refundable sales and use tax exemption provided for construction materials for clean water infrastructure.

Related bill: SF3317

AI Generated Summary

Purpose of the Bill

This bill aims to provide tax relief for specific construction projects in the city of Brooklyn Park, Minnesota. By introducing a tax exemption, the bill seeks to support development in a designated innovation district.

Main Provisions

  • Sales and Use Tax Exemption: The bill proposes an exemption from sales and use tax for materials, supplies, and equipment used in constructing two water mains. These water mains are intended to connect under U.S. Highway 169 to aid the city's biotech innovation district.
  • Eligibility Period: The tax exemption applies to purchases made between November 30, 2025, and January 1, 2029.
  • Refund Process: Although the tax will initially be applied at the standard rate, it will be refunded according to existing Minnesota Statutes, ensuring that construction materials are effectively exempt from these taxes.
  • Funding: The necessary funds to cover these tax refunds will be appropriated from the general fund and managed by the commissioner of revenue.

Significant Changes

The bill introduces a targeted tax exemption that specifically benefits construction projects related to infrastructure improvement for the biotech sector in Brooklyn Park, which is a new incentive not previously available.

Relevant Terms

  • Sales and Use Tax
  • Refundable Exemption
  • Construction Materials
  • Biotech Innovation District
  • Tax Refund
  • Infrastructure Development

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill applies sales and use tax rates for construction materials used in specific infrastructure projects under subdivisions 1 and 1a of section 297A.62.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This legislation references the refund procedure for sales tax exemptions related to infrastructure projects under subdivision 1, clause 17 of section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Sponsors