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HF2823 (Legislative Session 94 (2025-2026))

Independent School District No. 561, Goodridge; refundable sales and use tax exemption provided for construction materials for certain projects.

Related bill: SF3076

AI Generated Summary

Purpose of the Bill

The bill proposes a sales and use tax exemption for construction materials used in specific construction and renovation projects within Independent School District No. 561 in Goodridge, Minnesota.

Main Provisions

  • Tax Exemption: The bill allows for a refundable exemption on sales and use tax for materials, supplies, and equipment used in the district's construction projects.
  • Eligibility: This exemption applies to materials purchased between January 1, 2025, and December 31, 2026.
  • Projects Covered: The tax exemption is applicable to both renovations of the existing prekindergarten through grade 12 school building and the construction of new facilities such as a gymnasium, commons, classrooms, locker rooms, restrooms, a weight room, a career and technical education classroom, and a secure front entrance.

Significant Changes to Existing Law

  • Refund Process: Although the tax is imposed initially at the standard rate, refunds will be issued similarly to other projects under the state's tax refund regulations.
  • Applicant Requirement: The refund application must originate from the governmental entity responsible for the project rather than individuals or contractors.

Relevant Terms

  • Tax exemption
  • Sales and use tax
  • Construction materials
  • Goodridge School District
  • Refundable exemption
  • General fund appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provides conditions regarding the sales tax application for specific school district projects."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the imposition and collection of sales tax under Minnesota Statutes section 297A.62, subdivisions 1 and 1a.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Establishes a mechanism for refunds to be processed for school district purchases."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation refers to the refund process as outlined in Minnesota Statutes section 297A.75.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors