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SF2122 (Legislative Session 94 (2025-2026))

City of Chanhassen facility construction materials refundable exemption provision and appropriation

Related bill: HF1919

AI Generated Summary

This bill, S.F. No. 2122, proposes a sales and use tax exemption for materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Chanhassen Bluffs Sports Complex in Chanhassen, Minnesota.

Key Provisions:

  1. Tax Exemption and Refund:

    • Purchases of eligible materials and equipment made between November 1, 2025, and August 31, 2027, will be exempt from sales and use tax.
    • However, the tax will still be collected at the time of purchase and later refunded to the purchaser, similar to existing refund processes under Minnesota Statutes section 297A.75.

  2. Appropriation of Refunds:

    • The Minnesota general fund will appropriate the amount needed to cover these refunds to the Commissioner of Revenue, ensuring reimbursement for qualifying purchases.

Purpose:

This tax incentive aims to reduce construction costs for the Chanhassen Bluffs Sports Complex, facilitating its development and improvements.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A refundable exemption for construction materials for a facility in Chanhassen."
      ],
      "removed": [],
      "summary": "This bill references sales and use tax rates under section 297A.62, subdivisions 1 and 1a, in applying a refundable exemption.",
      "modified": [
        "Adjustment to procedures for imposing and collecting sales tax before refund."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "Application of existing refund process to new exemption."
      ],
      "removed": [],
      "summary": "This bill uses the refund process detailed in section 297A.75 subdivision 1, clause 17, for handling refunds related to the tax exemption.",
      "modified": [
        "Ensure alignment with current refund handling mechanisms for specified projects."
      ]
    },
    "citation": "297A.75"
  }
]

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