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SF3076 (Legislative Session 94 (2025-2026))

Certain independent School District No. 561, Goodridge, project construction materials refundable exemption provision and appropriation

Related bill: HF2823

AI Generated Summary

Purpose of the Bill

This bill aims to provide a financial benefit to Independent School District No. 561 in Goodridge, Minnesota, by exempting certain construction-related materials from sales and use tax. This exemption is targeted at specific school district projects to alleviate financial burdens and facilitate school infrastructure development.

Main Provisions

  • Tax Exemption: The bill provides a refundable exemption from sales and use tax for materials and supplies used in specific construction projects within the district. This includes the renovation of an existing school building as well as the construction of new facilities such as a gymnasium, commons, classrooms, locker rooms, restrooms, a weight room, a career and technical education classroom, and a secure entrance.

  • Eligibility and Time Frame: The tax exemption applies to materials purchased between January 1, 2025, and December 31, 2026. The exemption will be implemented by collecting taxes at the standard rate and then issuing refunds.

  • Refund Process: The refunds, a part of the tax exemption, are to be administered in a similar manner as outlined in Minnesota Statutes section 297A.75, except that the applicant for the refund must be the governmental entity that is responsible for the project.

Significant Changes

This bill creates a specific sales and use tax exemption for construction projects within Independent School District No. 561, different from universal tax applications, by facilitating refunds for taxes initially paid on these projects.

Relevant Terms

  • Sales and Use Tax
  • Construction Materials
  • Tax Exemption
  • Independent School District No. 561
  • Refundable Tax Credits
  • School Building Renovation
  • New Construction Projects
  • Minnesota Statutes Chapter 297A

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the tax rate under section 297A.62, subdivisions 1 and 1a, for sales and use tax applicable before the refund process.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The refund process for sales and use tax is aligned with the procedures outlined in section 297A.75, with modifications for the applicant requirements.",
      "modified": [
        "Specifies that the applicant for the refund must be the governmental entity involved in the project."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

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