Purpose of the Bill:

This bill aims to provide a financial benefit to the city of Monticello for constructing a new water treatment facility by exempting certain materials from sales and use tax.

Main Provisions:

• Refundable Tax Exemption: The bill offers a sales and use tax exemption for materials, supplies, and equipment used in the construction, expansion, or renovation of a water treatment facility in Monticello. This includes the necessary water utility infrastructure and related improvements.
• Timeframe: The tax exemption applies to purchases made from September 1, 2025, to December 31, 2029.
• Refund Process: Although the sales tax will still be collected at the point of sale, it will be refunded similarly to other specified projects under Minnesota Statutes. The governmental entity responsible for the project will apply for this refund.

Significant Changes:

• Tax Impact: Introduces a new tax benefit specifically targeted at construction materials for a municipal water treatment project, aiming to reduce project costs and facilitate infrastructure improvements.

Relevant Terms:

• Sales tax exemption
• Water treatment facility
• Infrastructure improvements
• Monticello
• Refund process
• Construction materials