The legislative bill in question aims to modify the current sales and use tax laws in Minnesota related to construction materials. Specifically, it proposes to introduce tax exemptions for certain types of entities when they purchase construction materials. These entities include school districts, local governments, certain hospitals and nursing homes that are owned by political subdivisions, county and public libraries, nonprofit groups, outpatient surgical centers, critical access dental providers, and boarding care homes.

The bill details that these materials can be used for building or reconstructing facilities mainly utilized by the specified entities. Additionally, it expands the exemption to include materials used for public infrastructure projects like roads, bridges, and water facilities.

Once the purchases are made, the bill proposes that the tax should be initially charged but then refunded. The procedure for this refund process would be outlined in the amended statute sections. This refund mechanism ensures that while the tax is initially collected as usual, it is eventually returned for the qualifying purchases made by the specified entities.