HF471

Purpose

This proposal would establish a temporary, refundable exemption from Minnesota sales and use taxes for construction materials, supplies, and equipment used in building a Benton County government center in the city of Foley.

What is exempt and the timeframe

• Eligible purchases: materials, supplies, and equipment that are incorporated into the construction of the Benton County government center in Foley.
• Time window: purchases made after March 31, 2025 and before January 1, 2030.

How the exemption works

• The exemption is treated as a refundable exemption. Taxes would be collected as if the standard rate under Minn. Stat. 297A.62(1) applied, and then refunded in the same way as refunds for other projects under Minn. Stat. 297A.75, subdivision 1, clause 17.

Timing of refunds

• Refunds for eligible purchases will not be issued until after June 30, 2025.

Appropriation and funding

• The money needed to pay these refunds is appropriated from the general fund to the Commissioner of Revenue.

Significance and scope

• The measure creates a temporary, project-specific tax incentive rather than broadening ongoing exemptions, applying only to a single county project (the Benton County government center in Foley) during a limited time period.

Administration and legal references

• Applies under Minnesota Statutes chapter 297A, including the tax rate provision (297A.62(1)) and the refund mechanism used for projects (297A.75, subdivision 1, clause 17).

Relevant Terms - sales and use tax - exemption - refundable exemption - refunds - construction materials - materials and supplies - equipment - Benton County - Foley - county government center - Minnesota Statutes chapter 297A - 297A.62(1) - 297A.75 subdivision 1 clause 17 - general fund - Commissioner of Revenue - appropriation - timing: after March 31, 2025; before January 1, 2030; refunds after June 30, 2025