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HF2132 (Legislative Session 94 (2025-2026))

Monticello; refundable sales and use tax exemption provided for construction materials for a water treatment facility.

Related bill: SF3016

AI Generated Summary

Purpose of the Bill

The purpose of the bill is to alleviate financial burdens related to the construction of a new water treatment facility in the city of Monticello. Specifically, it aims to provide a financial incentive in the form of a sales and use tax refund for the purchase of construction materials.

Main Provisions

  • Sales Tax Exemption: The bill introduces a sales and use tax exemption for materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a new water treatment facility. This also includes accompanying water utility infrastructure and associated improvements.
  • Refund Eligibility: The tax exemption applies to purchases made after August 31, 2025, and before January 1, 2030. Entities eligible for the refund must procure the items within this timeframe.
  • Refund Process: Although the sales tax would initially be collected at the regular rates, it would later be refunded. The process aligns with existing refund procedures as per Minnesota Statutes section 297A.75, with the primary applicant for the refund being the governmental entity responsible for the project.

Significant Changes to Existing Law

  • This bill introduces a specific refundable sales tax exemption for a large-scale public utility project in Monticello, which is not covered under the general Minnesota tax statutes currently in place.
  • It appropriates funds from the general fund to cover these refunds, which is a shift in the allocation of state resources for local infrastructure projects.

Relevant Terms

  • Sales tax exemption
  • Refundable exemption
  • Water treatment facility
  • Governmental entity
  • General fund appropriation

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "No additional subsections are explicitly added in section 297A.62."
      ],
      "removed": [
        "No subsections are explicitly removed from section 297A.62."
      ],
      "summary": "This bill adjusts sales tax rates for materials related to water treatment facility construction under section 297A.62.",
      "modified": [
        "Applies sales tax rates to purchases for refund purposes."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "New procedures for refund applications by a governmental entity owning or contracting the project."
      ],
      "removed": [
        "No subsections are explicitly removed from section 297A.75."
      ],
      "summary": "This bill incorporates the use of existing sales tax refund procedures as outlined in section 297A.75.",
      "modified": [
        "Modifies refund application process to specify governmental entity as the applicant."
      ]
    },
    "citation": "297A.75"
  }
]

Sponsors