Purpose

• Establish a sales and use tax exemption for certain purchases by the Department of Transportation (DOT) related to road projects.

Main Provisions

• Adds a new subdivision (Subd. 55) to Minnesota Statutes 2024 section 297A.71.
• Subd. 55: Department of Transportation construction projects.
• Purchases by the Department of Transportation of materials, supplies, and equipment incorporated into the construction, improvement, and maintenance of public highways are exempt from sales and use tax.

Significance / Changes to Existing Law

• Creates a targeted tax exemption within the state’s sales and use tax law.
• Specifically applies to DOT purchases used for road construction projects (construction, improvement, and maintenance of public highways).
• Amends existing law by adding Subdivision 55 to 297A.71 to formalize the exemption.

Practical Impact

• DOT can acquire necessary materials, supplies, and equipment for road work without paying sales and use tax on those purchases.
• This changes the cost structure of road construction and maintenance projects funded by the state.

Relevant Terms - Department of Transportation - purchases - materials - supplies - equipment - incorporated into - construction - improvement - maintenance - public highways - exemption - sales and use tax - Minnesota Statutes 2024 - section 297A.71 - subdivision 55 - road construction projects