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HF3083 (Legislative Session 94 (2025-2026))

Brooklyn Park; refundable sales and use tax exemption provided for construction materials for clean water infrastructure.

Related bill: SF3317

AI Generated Summary

Purpose of the Bill

The bill aims to provide a tax incentive specifically for the construction of clean water infrastructure in Brooklyn Park, Minnesota. It seeks to support the city's biotech innovation district by offering financial relief on the materials and equipment necessary for the construction of crucial water mains.

Main Provisions

  • Sales Tax Exemption: The bill proposes an exemption from sales and use tax for certain construction materials and equipment. These materials must be used in the construction of two water mains crossing under U.S. Highway 169 in Brooklyn Park.

  • Refundable Exemption: Although the tax will initially be collected, it will be refunded following specific provisions. This exemption applies to purchases made between November 30, 2025, and January 1, 2029.

  • Appropriation of Funds: Funding for the tax refunds will be appropriated from the general fund to the commissioner of revenue to cover the refunds specified in the exemption.

Significant Changes

This bill introduces a new temporary tax exemption targeting specific infrastructure projects in Brooklyn Park. It alters existing taxation procedures by allowing for a refundable exemption, which means that although the sales tax is collected as usual, it will ultimately not be applied to the materials and equipment used in this project. This is meant to reduce costs associated with the development of water infrastructure critical to supporting the local biotech industry.

Relevant Terms

  • Sales Tax Exemption
  • Use Tax
  • Refundable Exemption
  • Construction Materials
  • Water Infrastructure
  • Biotech Innovation District
  • Highway 169
  • Tax Refund
  • Appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to the imposition and collection of sales and use tax rates.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section provides refund procedures for sales tax related to certain projects.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Sponsors