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HF3234 (Legislative Session 94 (2025-2026))

Dilworth; refundable sales and use tax exemption provided for a community center.

Related bill: SF3465

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to support the construction of a community center in the city of Dilworth by providing a financial incentive in the form of a tax exemption for construction-related materials.

Main Provisions

  • Sales Tax Exemption: The bill proposes an exemption from sales and use tax for materials and supplies used in the construction, reconstruction, upgrading, expansion, renovation, or remodeling of a community center in Dilworth.
  • Eligibility Period: The tax exemption is applicable to materials purchased between January 1, 2025, and June 30, 2027.
  • Refund Process: While the tax is initially collected according to existing rates, it will be refunded subsequently. Refunds can only be claimed by the governmental entity that owns or contracts for the project's construction.
  • Appropriation for Refunds: Funds necessary for the issuance of these refunds will be appropriated from the general fund to the commissioner of revenue, with refunds being processed after June 30, 2025.

Significant Changes to Existing Law

This bill introduces a temporary sales tax exemption specifically for construction materials used for a community center in Dilworth, administered through a refund process. It outlines the appropriation of funds from the state’s general fund to ensure these refunds can be made.

Relevant Terms

sales tax exemption, construction materials, community center, Dilworth, government refund, appropriation, general fund, tax policy, taxation.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Refundable sales tax exemption for construction materials for community center project."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill imposes a sales tax rate under section 297A.62 subdivisions 1 and 1a for construction materials for a community center in the city of Dilworth and provides for a refund.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Clarifies refund process for sales tax exemption based on existing statute."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the refund method as provided for projects under section 297A.75.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors