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SF3465 (Legislative Session 94 (2025-2026))

City of Dilworth community center construction materials refundable exemption provision and appropriation

Related bill: HF3234

AI Generated Summary

Purpose of the Bill

The bill aims to provide a financial incentive to support the development of a community center in the city of Dilworth, Minnesota. It does this by offering a refundable exemption from sales and use tax on certain construction materials.

Main Provisions

  • Sales Tax Exemption: The bill proposes a refundable exemption for sales and use tax on materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a community center in Dilworth.
  • Eligibility Period: The purchases eligible for the tax exemption must be made between December 31, 2024, and July 1, 2027.
  • Refund Mechanism: Taxes on eligible purchases must initially be imposed and collected but will be refunded. The process follows similar refund methods outlined in Minnesota Statutes section 297A.75, with refunds not issued until after June 30, 2025.
  • Applicant Requirement: The governmental entity that owns or contracts for the community center project must apply for the refund.

Significant Changes

  • The bill introduces a new temporary tax exemption specific to the Dilworth community center project, which is not currently available under existing law.
  • It mandates an appropriation from the general fund to reimburse these tax refunds, indicating a direct allocation of state funds to support the project.

Relevant Terms

sales tax exemption, refundable tax, construction materials, community center, Dilworth, Minnesota, appropriation, general fund.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provides for a refundable exemption for construction materials for a community center in the city of Dilworth."
      ],
      "removed": [],
      "summary": "This bill references the taxation rate under section 297A.62 subdivisions 1 and 1a as applicable for the sales tax that will be imposed and collected.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Specifies that the governmental entity owning or contracting the project must apply for the refund."
      ],
      "removed": [],
      "summary": "This bill adopts the refund procedure as outlined for projects under section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors