SF167

SF167 (Legislative Session 94 (2025-2026))

Watertown sales tax exemption for construction materials authorization

Related bill: HF456

AI Generated Summary

The proposed bill, SF No 167, is about providing tax relief for specific construction projects in Watertown, Minnesota. It offers a refundable tax exemption on materials, supplies, and equipment used in:

Building a new water tower, with the condition that these items are purchased between May 1, 2024, and January 31, 2026.
Constructing a wastewater treatment facility, with purchases made from March 1, 2022, to June 30, 2025.

The process works by initially charging the tax on these items as usual and then refunding it later, with refunds starting after June 30, 2025. The money needed for these refunds will come from Minnesota’s general fund.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
January 15, 2025	House	Floor	Action	Introduction and first reading
January 15, 2025	Senate	Floor	Action	Introduction and first reading
January 15, 2025	House	Floor	Action	Referred to	Taxes
January 15, 2025	Senate	Floor	Action	Referred to	Taxes
February 02, 2025	House	Floor	Action	Author added
February 02, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifies the imposition and refund process for sales tax related to construction materials."
      ],
      "removed": [],
      "summary": "The bill discusses the application of sales tax under Minnesota Statutes section 297A.62 subdivisions 1 and 1a.",
      "modified": [
        "Explains how the sales and use tax rate applies to certain construction materials and projects."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Details the process for refunding sales tax for eligible construction projects."
      ],
      "removed": [],
      "summary": "The bill references the refund process under section 297A.75, subdivision 1, for sales and use tax.",
      "modified": [
        "Specifies extension of refund eligibility to certain projects in Watertown."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]