This bill (S.F. No. 2178) proposes a refundable sales tax exemption for construction materials used in building new multifamily residential housing for first-time homebuyers in Minnesota. Specifically, it applies to duplexes and triplexes where the first-time homebuyer owns and occupies at least one unit. The exemption covers taxes paid on the first $460,000 of construction costs.

The tax on these purchases would still be collected at the standard rate but later refunded. This exemption is set to expire on July 1, 2033.

The bill amends Minnesota Statutes 2024, section 297A.71, by adding a new subdivision and modifying section 297A.75 regarding tax refunds.