Purpose

Create a temporary, refundable sales and use tax exemption for construction materials used in specific Wayzata projects, with refunds processed after certain dates.

Main provisions

• Exemption type and scope
  • Materials, supplies, and equipment used in and incorporated into the following projects in Wayzata are exempt from sales and use tax if purchased between December 31, 2025 and July 1, 2030:
  • Expansion and remodeling of Depot Park
  • Construction of community docks for access to Lake Minnetonka
  • Shoreline restoration (including native plants, trees, and natural habitat)
  • Restoration of the Section Foreman House (including a learning center for indoor/outdoor classrooms and community space)
  • Eco Park (including shoreline restoration, marsh and water quality improvements, a pier extension of the lakeside boardwalk, and ecoliving classrooms)
  • Construction of a regional multiuse trail
• Tax collection and refund process
  • The tax on these purchases is to be collected as if the normal rate under Minnesota law applies, and then refunded in the same manner used for other refunds.
  • Refunds for eligible purchases are not issued until after June 30, 2026.
• Eligible purchases
  • Only materials, supplies, and equipment used in the listed projects qualify for the refund.

Funding and administration

• Appropriation
  • The amount needed to pay the refunds is appropriated from the general fund to the commissioner of revenue.

Timeline and conditions

• Purchase window
  • Applies to materials bought after December 31, 2025 and before July 1, 2030.
• Geographic scope
  • Limited to projects located in the city of Wayzata.

Significance and changes to existing law

• New temporary refundable exemption
  • Establishes a temporary, refundable exemption from sales and use tax for specified Wayzata construction projects, modifying how tax is collected and refunded under Minnesota law (Minnesota Statutes chapter 297A).
• Fiscal mechanism
  • Requires an appropriation from the general fund to support the refunds, indicating a state-funded program rather than a permanent tax cut.

Relevant Terms sales and use tax, exemption, refundable exemption, Wayzata, Depot Park, community docks, Lake Minnetonka, shoreline restoration, native plants, natural habitat, Section Foreman House, learning center, indoor classroom, outdoor classroom, Eco Park, marsh, water quality, pier extension, lakeside boardwalk, ecoliving classrooms, regional multiuse trail, Minnesota Statutes chapter 297A, purchases, refund, commissioner of revenue, general fund, appropriation.