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HF2054 (Legislative Session 94 (2025-2026))

Refundable sales and use tax exemption provided for construction materials used in the Moorhead City Hall renovation project.

Related bill: SF1684

AI Generated Summary

Purpose of the Bill

The bill aims to provide a tax exemption for materials used in the renovation of Moorhead City Hall. This is intended to reduce construction costs by refunding the sales and use tax on qualifying purchases.

Main Provisions

  • Tax Exemption: The bill provides a refundable exemption from sales and use tax for materials and equipment used in the renovation of Moorhead City Hall.
  • Eligibility Period: The tax exemption applies to goods bought between March 1, 2025, and June 1, 2027.
  • Refund Process: Although sales tax is initially collected on these purchases, it will be refunded following specific state procedures, starting after June 30, 2025.

Significant Changes to Existing Law

  • The proposal introduces a specific exemption from the Minnesota sales tax, particularly benefitting the Moorhead City Hall renovation project.
  • Funds for these refunds will be allocated from the general state budget to cover the tax exemptions.

Relevant Terms

sales tax exemption, refundable tax exemption, construction materials, Moorhead City Hall renovation, sales and use tax, tax refund, general fund appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new provision for refunding taxes on construction materials for a specific public project."
      ],
      "removed": [],
      "summary": "This bill references the imposition of sales and use tax rates under section 297A.62.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "Specific refund process for city hall construction project outlined."
      ],
      "removed": [],
      "summary": "This bill references refund procedures and timing for sales and use taxes under section 297A.75.",
      "modified": []
    },
    "citation": "297A.75"
  }
]

Sponsors