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HF2153 (Legislative Session 94 (2025-2026))

Albert Lea construction materials sales and use tax exemption provided.

Related bill: SF2378

AI Generated Summary

Purpose of the Bill

The purpose of the bill is to provide financial incentives for construction projects in the city of Albert Lea, Minnesota. Specifically, it aims to make certain construction materials exempt from sales and use tax if they are used in particular building projects.

Main Provisions

  • The bill grants a refundable sales tax exemption for materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of ice rinks in Albert Lea.
  • The exemption applies to purchases made after April 9, 2024, and before January 1, 2027.
  • Although the sales tax must initially be imposed and collected at the standard rate, refunds will later be issued.
  • Refunds will be processed in accordance with guidelines similar to those for other projects under Minnesota tax statutes.

Significant Changes to Existing Law

  • The bill introduces a tax exemption specific to a local area (Albert Lea) within Minnesota, which is not common practice for localized construction projects.
  • Establishes a clear timeline for when purchases must occur to qualify for the exemption.

Relevant Terms

  • Sales tax exemption
  • Use tax
  • Refundable tax
  • Construction materials
  • Tax appropriation
  • Ice rinks
  • Albert Lea

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 11, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "The inclusion of specific construction materials and supplies for the Albert Lea project."
      ],
      "removed": [],
      "summary": "The bill references the imposition and collection of sales and use taxes as per the existing rates under section 297A.62.",
      "modified": [
        "Clarification on refund process consistent with previously established project refund procedures."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "New provision for refund issuance after a specific date for the Albert Lea ice rink project."
      ],
      "removed": [],
      "summary": "This bill references section 297A.75 to establish procedures for issuing tax refunds for eligible purchases within the specified project.",
      "modified": [
        "Aligns refund issuance with procedures in 297A.75 but specifies application to Albert Lea project."
      ]
    },
    "citation": "297A.75"
  }
]

Sponsors