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SF2795 (Legislative Session 94 (2025-2026))

City of East Grand Forks project construction materials refundable exemption provision and appropriation

Related bill: HF2658

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide a sales and use tax exemption for construction materials specifically used in the development and renovation of two sports facilities in the city of East Grand Forks, Minnesota. This tax exemption aims to reduce costs and support local infrastructure projects.

Main Provisions

  • The bill proposes a tax exemption for materials and supplies, as well as equipment, used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of two specific facilities: the Civic Center Sports Complex and the VFW Memorial Arena in East Grand Forks.
  • The tax exemption applies to purchases made between November 30, 2025, and December 31, 2029.
  • Although sales and use tax must initially be imposed and collected, it will be refunded subsequently. This refund process follows the guidelines set in Minnesota Statutes section 297A.75.

Significant Changes to Existing Law

  • The bill introduces a temporary, project-specific exemption and refund process for sales and use taxes, encouraging investment in specific local construction projects.
  • An appropriation from the state's general fund will be allocated to cover the cost of these tax refunds, as managed by the commissioner of revenue.

Relevant Terms

sales tax exemption, use tax, refund, Civic Center Sports Complex, VFW Memorial Arena, construction materials, East Grand Forks, tax refund, infrastructure project, general fund appropriation.

Bill text versions

Past committee meetings

  • Taxes on: April 08, 2025 09:00

Actions

DateChamberWhereTypeNameCommittee Name
March 20, 2025SenateFloorActionIntroduction and first reading
March 20, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to the sales tax rates applicable under section 297A.62.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the procedures for refunding sales tax in section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors