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SF2378 (Legislative Session 94 (2025-2026))

Albert Lea city projects construction materials refundable sales and use tax exemption establishment

Related bill: HF2153

AI Generated Summary

Purpose of the Bill

The bill is designed to provide a tax benefit specifically for construction projects in the city of Albert Lea, Minnesota. It aims to create a financial incentive for the development and renovation of ice rinks in this area by offering a sales and use tax exemption.

Main Provisions

  • Sales Tax Exemption: The bill provides a refundable sales and use tax exemption for materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of ice rinks in Albert Lea.
  • Eligibility Window: Purchases must be made between April 9, 2024, and January 1, 2027, to qualify for the tax exemption.
  • Refund Process: Although the tax is imposed and collected at the time of purchase, it will be refunded to qualifying buyers. The refund process will be managed similarly to existing procedures under Minnesota law.

Significant Changes to Existing Law

This bill introduces a specific tax exemption for construction materials related to ice rinks in Albert Lea, which is not currently provided under existing Minnesota taxation statutes. It uses an established refund procedure to manage the process, ensuring that buyers initially pay the tax but can apply for refunds afterward.

Relevant Terms

  • Sales and use tax exemption
  • Refundable tax
  • Construction materials
  • Ice rinks
  • Albert Lea
  • Tax refund process

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A specific exemption for construction materials in Albert Lea."
      ],
      "removed": [],
      "summary": "This bill provides a sales tax exemption for construction materials used in ice rink projects in Albert Lea under chapter 297A.",
      "modified": []
    },
    "citation": "297A"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to the existing sales and use tax rates in section 297A.62.",
      "modified": [
        "Clarifies the imposition of tax at existing rates before refund."
      ]
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill uses the refund process outlined in section 297A.75 for the newly exempted projects.",
      "modified": [
        "Applies existing refund procedures to the new exemption."
      ]
    },
    "citation": "297A.75"
  }
]

Sponsors