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SF3114 (Legislative Session 94 (2025-2026))

Independent School District No. 186, Pequot Lakes construction projects refundable exemption provision and appropriation

Related bill: HF2826

AI Generated Summary

Purpose of the Bill

The bill aims to provide financial relief for construction projects in Pequot Lakes, specifically in the schools of Independent School District No. 186. It focuses on exempting sales and use tax for certain construction materials.

Main Provisions

  • Tax Exemption: The bill proposes a sales and use tax exemption on materials and supplies used in construction projects within the Pequot Lakes school district.

  • Eligible Projects: The exempt projects include:

    1. Additions and improvements to Eagle View Elementary School.
    2. Additions and improvements to Pequot Lakes Middle School.
    3. Additions and improvements to Pequot Lakes High School.
    4. Improvements to outdoor facilities within the district.

  • Time Frame: This tax exemption applies to purchases made between January 1, 2026, and December 31, 2036.

  • Refund Process: Taxes must initially be paid but will be refunded in the same manner as other similar projects, with the application being made by the governmental entity responsible for the project.

Significant Changes

  • Introduces a specific tax exemption and refund process that applies only to the schools and projects specified in Pequot Lakes School District.
  • Allocates funds from the general fund to cover these tax refunds, thus directly appropriating government revenue for this purpose.

Relevant Terms

  • Sales tax exemption
  • Use tax exemption
  • Construction materials
  • Independent School District No. 186
  • Pequot Lakes
  • Tax refund process
  • General fund appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies how sales tax rates are applied and refunded for specific construction projects under section 297A.62.",
      "modified": [
        "Clarifies the sales tax rate application for construction materials used in specified school district projects."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the process for obtaining sales tax refunds as outlined in section 297A.75.",
      "modified": [
        "Specifies that the governmental entity must apply for tax refunds."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors