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)

Bill text versions

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Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTaxes
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Citations

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Progress through the legislative process

17%
In Committee

Sponsors

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