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HF2638 (Legislative Session 94 (2025-2026))

Ramsey; sales and use tax exemption for construction materials modified.

Related bill: SF1981

AI Generated Summary

Purpose of the Bill

This bill aims to modify the existing tax exemption for construction materials used in specific infrastructure projects in the city of Ramsey, Minnesota.

Main Provisions

  • Tax Exemption: The bill provides a sales and use tax exemption for materials and supplies used in the construction of new water treatment plants and trunk water main improvements in Ramsey.
  • Time Frame: To qualify for the tax exemption, materials must be purchased between January 1, 2023, and June 30, 2027.
  • Refund Process: Taxes will initially be collected at the standard rate but will be refunded for eligible purchases. Refunds will be processed for purchases made after June 30, 2023, and before July 1, 2027.

Significant Changes

The bill amends an existing law from 2023 by extending the parameters of tax exemption relating to construction materials, specifying a designated period in which the tax refund is applicable for the projects in Ramsey. This amendment seeks to clarify the timeline and process for tax refunds associated with qualified purchases.

Relevant Terms

sales tax exemption, construction materials, infrastructure projects, water treatment plant, trunk water main improvements, Ramsey, tax refund, Minnesota Statutes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the exemption for construction materials used in projects in the city of Ramsey and references the applicable tax rate under section 297A.62.",
      "modified": [
        "Clarifies the tax rate applicable for the exemption."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the manner for refund processes for projects connecting to section 297A.75.",
      "modified": [
        "Specifies refund processing timeline and guidelines."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

Sponsors