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HF2658 (Legislative Session 94 (2025-2026))

East Grand Forks; refundable sales and use tax exemption for construction materials provided.

Related bill: SF2795

AI Generated Summary

Purpose of the Bill

The bill aims to provide a tax incentive for construction projects in East Grand Forks, Minnesota, specifically targeting the Civic Center Sports Complex and the VFW Memorial Arena. This is intended to support local infrastructure development by reducing the cost burden associated with construction materials.

Main Provisions

  • Tax Exemption: The bill introduces a sales and use tax exemption for materials and supplies used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of specified public venues in East Grand Forks.
  • Refundable Tax: Although taxed initially, the bill allows for these taxes to be refunded, making the tax exemption effectively refundable.
  • Timeframe: The exemption applies to purchases made between November 30, 2025, and December 31, 2029.
  • Funding for Refunds: The costs for refunding these taxes are covered by the general fund, as appropriated to the commissioner of revenue.

Significant Changes to Existing Law

  • This bill establishes a specific, time-limited tax exemption for construction materials used in significant public infrastructure projects in East Grand Forks, differing from broader state-wide sales tax regulations.

Relevant Terms

sales tax exemption, use tax, refundable tax, construction materials, Civic Center Sports Complex, VFW Memorial Arena, East Grand Forks, infrastructure development, Minnesota Statutes chapter 297A, general fund.

Bill text versions

Upcoming committee meetings

  • Taxes on: April 08, 2025 10:15
  • Taxes on: April 08, 2025 10:15

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provides conditions for exemption refund for construction materials in East Grand Forks."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the existing sales and use tax rates applicable under Minnesota Statutes.",
      "modified": [
        "Clarifies imposition and collection of tax before refund process."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Allows for refund of taxes imposed on certain construction materials."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill utilizes the existing refund provision for specific projects under Minnesota Statutes.",
      "modified": [
        "Aligns refund process with existing project refund procedures."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1"
  }
]

Sponsors