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SF2727 (Legislative Session 94 (2025-2026))

City of St. Cloud redevelopment districts construction projects materials refundable exemption provision and appropriation

Related bill: HF3028

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to offer financial incentives for construction projects in specific redevelopment districts within the city of St. Cloud, Minnesota, by providing a refundable sales and use tax exemption for certain materials and supplies.

Main Provisions

  • Tax Exemption: Materials, supplies, and equipment used in private redevelopment projects on specific parcels in St. Cloud are exempt from sales and use tax.
  • Eligibility: The developments must be subject to property taxes to qualify for the exemption.
  • Refund Process: Although the tax will still be imposed and collected initially, developers can apply for a refund of the tax paid on exempt items. The owner of the property development is responsible for applying for the refund.
  • Information Requirement: Applicants must provide sufficient information to verify the tax paid. If the tax was initially paid by contractors, subcontractors, or builders, they must provide a statement of costs and taxes paid to the refund applicant.
  • Timeframe: The tax exemption applies to sales and purchases made from July 1, 2025, to December 31, 2040.

Significant Changes to Existing Law

This bill introduces a new refundable tax exemption specifically for redevelopment projects within designated parcels in St. Cloud, thereby establishing financial incentives intended to stimulate redevelopment in these areas. It includes a ceiling on refunds at a total of $13 million, sourced from the state’s general fund.

Relevant Terms

redevelopment districts, sales and use tax exemption, St. Cloud, construction projects, refundable tax, property taxes, tax identification numbers, tax refund process, Minnesota Statutes chapter 297A.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section of the bill refers to the sales tax rate applicable to the sale of goods and services in Minnesota under section 297A.62.",
      "modified": [
        "References sales tax rate application in the context of redevelopment project exemptions."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill applies the provisions of tax refunds under section 289A.40.",
      "modified": [
        "Ensures that the tax refund process for redevelopment project exemptions adheres to existing refund procedures."
      ]
    },
    "citation": "289A.40",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Provisions regarding tax refunds as outlined in section 289A.50 are referred to in this bill.",
      "modified": [
        "Aligns the processing of refund claims for redevelopment project exemptions with current law."
      ]
    },
    "citation": "289A.50",
    "subdivision": ""
  }
]

Sponsors