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SF1638 (Legislative Session 94 (2025-2026))

Lake Superiors School District refundable exemption provision for construction projects

Related bill: HF1571

AI Generated Summary

This bill provides a refundable sales and use tax exemption for construction materials, supplies, and equipment used in specific projects within the Lake Superior School District (Independent School District No. 381) in Minnesota.

Key Provisions:

  1. Eligible Projects:

    • Additions and improvements to Minnehaha Elementary School
    • Additions and improvements to William Kelly School
    • Improvements to Two Harbors High School
    • Improvements or replacement of the Two Harbors Bus Garage and Silver Bay Bus Garage
    • Improvements to athletic facilities

  2. Applicable Timeframe:

    • The exemption applies to purchases made between January 1, 2023, and December 31, 2025.

  3. Refund Process:

    • The tax will initially be collected as usual and then refunded after January 1, 2026, following the procedures outlined in Minnesota Statutes section 297A.75, subdivision 1, clause 17.

  4. Funding:

    • The refunds will be paid from the state's general fund, with an appropriation allocated to the commissioner of revenue to cover the refund amounts.

Summary:

The bill allows for a temporary sales tax exemption with a refund mechanism for construction and improvement projects within the Lake Superior School District, aiming to reduce costs for school facility upgrades. Refunds will be issued once the eligible purchase period ends in 2026.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the imposition and refunding of sales tax for eligible construction materials and supplies."
      ],
      "summary": "This bill establishes a refundable exemption for specific construction projects within the Lake Superior School District under section 297A.62.",
      "modified": [
        "Aligns the refund process with existing procedures under section 297A.75 subdivision 1, clause 17."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "New subdivision for handling refunds for school district construction projects."
      ],
      "removed": [],
      "summary": "Refers to procedures for refunding sales tax under section 297A.75.",
      "modified": []
    },
    "citation": "297A.75"
  }
]

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