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SF2795 (Legislative Session 94 (2025-2026))

City of East Grand Forks project construction materials refundable exemption provision and appropriation

Related bill: HF2658

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to create a sales and use tax exemption for construction materials used for specific projects in East Grand Forks, Minnesota. The bill seeks to financially support the development of local sports and community facilities.

Main Provisions

  • Tax Exemption for Construction Materials: The bill proposes an exemption from sales and use tax for materials and supplies used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Civic Center Sports Complex and the VFW Memorial Arena in East Grand Forks.
  • Refund Process: Although sales tax will initially be collected at the regular rate, it will subsequently be refunded, as per existing procedures under Minnesota law.
  • Effective Dates: The eligible period for purchases related to these projects is between November 30, 2025, and December 31, 2029.

Significant Changes to Existing Law

This bill introduces a specific tax exemption for construction materials related to the Civic Center Sports Complex and the VFW Memorial Arena, requiring an appropriation from the state's general fund to cover the tax refunds.

Relevant Terms

  • Sales and use tax
  • Exemption refund
  • Construction materials
  • Civic Center Sports Complex
  • VFW Memorial Arena
  • East Grand Forks
  • Minnesota Statutes chapter 297A

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the applicable sales tax rate under section 297A.62 for calculating the tax to be refunded.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill uses the refund process outlined in section 297A.75 for projects similar to those in clause 17.",
      "modified": []
    },
    "citation": "297A.75"
  }
]

Sponsors