HF677
Spring Lake Park; refundable sales and use tax exemption provided for construction materials.
Legislative Session 94 (2025-2026)
Related bill: SF1356
AI Generated Summary
Purpose
Explain the bill’s goal: to provide a refundable sales tax exemption for construction materials for a city hall project in the City of Spring Lake Park, Minnesota.
What the bill would do (Main Provisions)
- Exemption/refund for construction materials
- Materials and supplies used or consumed in, and equipment incorporated into, the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a city hall facility in Spring Lake Park are exempt from sales and use tax under Minnesota Statutes chapter 297A.
- Eligibility is limited to purchases made after December 31, 2023 and before January 1, 2026.
- How the exemption works
- The tax is collected as if the standard rate under Minnesota Statutes section 297A.62, subdivisions 1 and 1a applied, but then the tax is refunded in the same manner provided for certain projects under Minnesota Statutes section 297A.75, subdivision 1, clause 17. This makes it a refundable exemption.
- Timing of refunds
- Refunds for eligible purchases must not be issued until after June 30, 2025.
- Administration of refunds
- The refunds are issued through the same process used for other eligible projects under the referenced statutes.
Financial and funding aspects
- Appropriation
- The amount needed to pay the refunds under this exemption is appropriated from the general fund to the commissioner of revenue.
Significance and potential impacts
- Creates a targeted, time-limited tax relief for a specific municipal construction project (Spring Lake Park city hall).
- Changes existing law by converting the exemption into a refundable mechanism rather than a permanent exemption, and tying it to established refund procedures (297A.75).
Timeline and scope
- Eligible purchases must occur between January 1, 2024 and December 31, 2025.
- Refunds become payable after June 30, 2025.
Key cross-references
- Minnesota Statutes chapter 297A
- Section 297A.62, subdivisions 1 and 1a
- Section 297A.75, subdivision 1, clause 17
Relevant Terms - Spring Lake Park - city hall facility - sales and use tax - exemption refund / refundable exemption - construction materials - materials and supplies - equipment incorporated - construction, reconstruction, upgrade, expansion, renovation, remodeling - time-limited (2023–2026 window) - refunds after June 30, 2025 - general fund appropriation - commissioner of revenue - Minnesota Statutes 297A (and referenced sections)
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 13, 2025 | House | Action | Introduction and first reading, referred to | Taxes | |
| Showing the 5 most recent stages. This bill has 1 stages in total. Log in to view all stages | |||||
Citations
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Progress through the legislative process
In Committee
Sponsors
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