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HF3084 (Legislative Session 94 (2025-2026))

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

Related bill: SF3318

AI Generated Summary

Purpose of the Bill

The bill aims to provide a financial benefit to support the construction of a clean water infrastructure project in the city of Brooklyn Park, Minnesota. By offering a refundable sales and use tax exemption, the bill helps reduce the overall cost of building a water storage facility that will aid the Biotech Innovation District.

Main Provisions

  • Sales Tax Exemption: Construction materials, supplies, and equipment used or incorporated into the water storage facility will qualify for an exemption from state sales and use taxes.
  • Eligibility Period: This exemption applies to purchases made between November 30, 2025, and January 1, 2029.
  • Refund Process: Although the sales tax is initially collected at the standard rate, it will later be refunded similarly to other projects under existing Minnesota statutes.
  • Funding: The bill stipulates that the funds necessary for these refunds will be appropriated from the state's general fund to the commissioner of revenue.

Significant Changes to Existing Law

The bill introduces a specific exemption for construction materials related to the Brooklyn Park clean water project, which is not typically covered under the general tax code. This is targeted legislation meant to support local infrastructure investment within a specified time frame.

Relevant Terms

  • Tax Exemption
  • Sales and Use Tax
  • Infrastructure
  • Water Storage Facility
  • Biotech Innovation District
  • 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": "The bill applies the sales tax rate as outlined in section 297A.62 to construction materials for Brooklyn Park's water storage facility.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This provision allows for a refund process for sales taxes imposed on specific construction projects, as referenced in Minnesota Statutes section 297A.75.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Sponsors