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HF2724 (Legislative Session 94 (2025-2026))

Minneapolis; Upper Harbor Terminal Amphitheater construction materials sales tax exemption provided.

Related bill: SF2993

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide a financial incentive to support the development of the Upper Harbor Terminal Amphitheater in Minneapolis. It achieves this by offering a tax exemption on construction materials used in the project.

Main Provisions

  • Tax Exemption: The bill introduces a sales and use tax exemption for materials, supplies, fixtures, furniture, and equipment used in construction-related activities for the amphitheater. This includes construction, renovation, reconstruction, demolition, upgrading, repair, maintenance, or improvement of public infrastructure.

  • Eligible Purchases: To qualify for this exemption, purchases must be made by contractors, subcontractors, or the operator of the amphitheater. They must occur between July 1, 2025, and December 31, 2028.

  • Refund Process: While the tax is initially imposed and collected at the standard rate, it will be refunded in accordance with specific state procedures. This is similar to the process used for other public construction projects.

Significant Changes

  • New Tax Exemption: This bill introduces a new temporary tax exemption specifically targeted at the Upper Harbor Terminal Amphitheater project, deviating from the standard tax requirements outlined in Minnesota Statutes, Chapter 297A.

  • Funding for Refunds: The bill ensures that funds to cover these tax refunds are allocated from the general fund, providing the necessary financial resources to support this exemption.

Relevant Terms

tax exemption, sales tax, use tax, construction materials, Upper Harbor Terminal Amphitheater, Minneapolis, refund, public infrastructure, general fund.

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": [
        "This relates to the imposition and collection from construction materials used for the Upper Harbor Terminal Amphitheater."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill mentions that the sales and use tax must be imposed and collected as per section 297A.62 subdivisions 1 and 1a.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Refund procedure for taxes applied to construction materials."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill specifies a refund process for the sales and use tax similar to other projects under section 297A.75 subdivision 1 clause 17.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Sponsors