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SF220 (Legislative Session 94 (2025-2026))

Fairmont sales and use tax exemption for construction materials authorization

Related bill: HF1710

AI Generated Summary

The legislative bill SF No. 220 proposes to exempt certain construction materials from sales and use taxes in the city of Fairmont, Minnesota. This tax relief is specifically for projects involving the construction, reconstruction, upgrading, expansion, renovation, or remodeling of three types of projects:

  1. A UV-biosolids project, with tax-exempt purchases allowed between September 11, 2024, and January 11, 2027.
  2. A storage tank project, with tax-exempt purchases allowed between January 1, 2025, and June 2, 2026.
  3. A public works building project, with tax-exempt purchases allowed between May 31, 2021, and March 8, 2024.

The bill outlines that the taxes will initially be collected as usual but will be refunded later according to the guidelines established under a specific section of Minnesota Statutes. The money needed to cover these tax refunds will be provided from the state’s general fund to the commissioner of revenue. The first refunds are scheduled to be issued no earlier than June 30, 2025.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 15, 2025SenateFloorActionIntroduction and first reading
January 15, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies that refunds are based on the rate listed in 297A.62 after June 30, 2025."
      ],
      "removed": [],
      "summary": "The bill provides a framework for how sales tax is to be applied and refunded for specific construction projects in Fairmont under section 297A.62.",
      "modified": [
        "Adjusts the application of sales tax for qualifying construction materials and supplies."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [
        "Applies the refund process to projects outlined in the bill."
      ],
      "removed": [],
      "summary": "The bill refers to the refund procedure outlined in section 297A.75 for construction projects in Fairmont.",
      "modified": [
        "Uses the existing refund process described in section 297A.75 for newly eligible projects."
      ]
    },
    "citation": "297A.75"
  }
]

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