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HF2826 (Legislative Session 94 (2025-2026))

Independent School District No. 186, Pequot Lakes; refundable sales and use tax exemption provided for construction projects.

Related bill: SF3114

AI Generated Summary

Purpose of the Bill

The bill aims to provide a sales and use tax exemption for construction projects in Independent School District No. 186 in Pequot Lakes, Minnesota. This exemption is designed to reduce the costs associated with specific school construction projects within the district.

Main Provisions

  • Tax Exemption for Materials: Materials, supplies, and equipment purchased for the construction, renovation, expansion, or remodeling of certain school facilities in Pequot Lakes are exempt from sales and use tax. This exemption applies to purchases made after December 31, 2025, and before January 1, 2037.

  • Specific Facilities Covered: The tax exemption applies to:

    1. Additions and improvements to Eagle View Elementary School.
    2. Additions and improvements to Pequot Lakes Middle School.
    3. Additions and improvements to Pequot Lakes High School.
    4. Improvements to outdoor facilities associated with these schools.

  • Refund Process: While the tax will be initially imposed and collected at the normal rate, a refund process will be in place. The governmental entity responsible for the project will apply for the refund.

Significant Changes to Existing Law

  • The bill creates a new, specific tax exemption under Minnesota Statutes for a defined period and set of projects in Pequot Lakes, which did not exist prior to this legislation.
  • It establishes an appropriation from the general fund to cover the cost of these tax refunds, ensuring the exemption is funded by the state's general revenues.

Relevant Terms

sales tax exemption, construction materials, Independent School District No. 186, Pequot Lakes, renovation, tax refund, government appropriation, educational facilities construction.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provides a framework for calculating payable sales and use tax for specified school district projects."
      ],
      "removed": [],
      "summary": "The bill references tax rates applicable to sales and use tax under section 297A.62.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "It specifies the entity eligible to apply for a refund."
      ],
      "removed": [],
      "summary": "The bill modifies the refund process for sales and use tax as per section 297A.75.",
      "modified": [
        "Clarifies that the refund process aligns with existing provisions, except for applicant requirements."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors