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HF891 (Legislative Session 94 (2025-2026))

Worthington Independent School District; refundable sales and use tax exemption provided for construction materials used in certain projects.

Related bill: SF159

AI Generated Summary

The proposed legislative bill, H.F. No., is designed to support educational and community infrastructure in the Worthington Independent School District (ISD No. 518) by providing a refundable sales and use tax exemption. This exemption applies specifically to the construction materials, supplies, and equipment used in various construction and renovation projects within the district. Here is a simplified summary of the key points and affected projects:

  1. Tax Exemption Period: The exemption is available for eligible materials, supplies, and equipment purchased between April 30, 2020, and January 1, 2028.

  2. Eligible Projects:

    • Construction of a new grades 3-5 intermediate school building.
    • Construction of a new community education building catering to early childhood, adult basic education, and the Nobles County Integration Collaborative programs.
    • Construction of a new storage facility for the intermediate school, learning center, gymnastics facility, and community education building.
    • Reconstruction and replacement of the parking lot at Worthington Middle School.
    • Addition to Worthington High School, remodeling of existing spaces, and expansion of core areas.
    • Construction of a new ice arena with event space.
    • Installation of a turf football field at the middle school.
    • Demolition of the former West Elementary building and construction of sports fields with parking.
    • Reconstruction of Trojan Field and associated facilities.
    • Improvements to the Worthington Learning Center and gymnastics facility.

  3. Refund Process: Taxes will be collected as usual but can be refunded in accordance with the procedures outlined in Minnesota Statutes section 297A.75 subdivision 1 clause 17. For purchases made between April 30, 2020, and October 1, 2021, claims for refunds can be filed until January 1, 2025.

  4. Funding: The necessary funds to cover these tax refunds will be drawn from the general fund and managed by the commissioner of revenue.

This bill aims to alleviate some financial burden from the Worthington Independent School District by reducing the cost associated with critical educational and community infrastructure developments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the exemption and refund process for construction materials used in specific school district projects."
      ],
      "removed": [],
      "summary": "The bill references the imposition of sales and use tax under section 297A.62, subdivisions 1 and 1a.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "Establishes the refund mechanism for materials purchased after April 30, 2020, for the Worthington Independent School District projects."
      ],
      "removed": [],
      "summary": "This bill refers to the refund process as provided under section 297A.75, subdivision 1 clause 17.",
      "modified": []
    },
    "citation": "297A.75"
  },
  {
    "analysis": {
      "added": [
        "Allows filing of refunds for purchases made within a specific period extending the usual claim timeline."
      ],
      "removed": [],
      "summary": "The bill makes exception to the timelines for filing refund claims under section 289A.40.",
      "modified": []
    },
    "citation": "289A.40"
  }
]

Sponsors