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HF3028 (Legislative Session 94 (2025-2026))

St. Cloud; refundable sales and use tax exemption provided for materials used in construction projects in redevelopment districts.

Related bill: SF2727

AI Generated Summary

Purpose of the Bill

The bill aims to support redevelopment efforts in St. Cloud, Minnesota, by providing a financial incentive through a refundable sales and use tax exemption for materials used in specific construction projects within designated redevelopment districts.

Main Provisions

  • Tax Exemption for Redevelopment Projects: Materials and supplies used in private redevelopment projects on specified parcels in St. Cloud are exempt from sales and use tax, provided the resulting developments are subject to property tax.
  • Eligibility: The exemption covers various parcels in Stearns County and Benton County, designated as catalyst sites for redevelopment.
  • Tax Collection and Refund Process: The tax is initially collected at the transaction and subsequently refunded. The applicant for the refund must be the owner of the development. Contractors or builders must provide necessary cost and tax documentation if they paid the tax.
  • Effective Dates: The exemption applies to transactions made after July 1, 2025, and before December 31, 2040.

Significant Changes to Existing Law

  • Introduction of a Refundable Tax Exemption: This bill creates a new refundable tax exemption specific to redevelopment projects in St. Cloud, differing from general state tax laws by focusing on specific geographic areas and project types.
  • Cap on Total Refunds: The law limits total refunds to $13,000,000. Refunds will be issued in the order applications are received until the cap is reached.

Relevant Terms

sales and use tax, refundable exemption, redevelopment districts, St. Cloud, catalyst sites, property tax, tax identification numbers, Stearns County, Benton County, general fund appropriation.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies application of tax rate for redevelopment projects."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill provides for the imposition and collection of tax regarding sales and purchases involved in development projects in St. Cloud under section 297A.62.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Applies refund procedures to exempt sales tax for redevelopment projects."
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to refund procedures applicable under section 289A.40.",
      "modified": [
        ""
      ]
    },
    "citation": "289A.40",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Incorporates refund issuance process for applicable projects."
      ],
      "removed": [
        ""
      ],
      "summary": "Details the conditions under which tax refunds are issued according to section 289A.50.",
      "modified": [
        ""
      ]
    },
    "citation": "289A.50",
    "subdivision": ""
  }
]

Sponsors