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SF2993 (Legislative Session 94 (2025-2026))

City of Minneapolis Upper Harbor Terminal Amphitheater construction materials refundable exemption provision and appropriation

Related bill: HF2724

AI Generated Summary

Purpose of the Bill

The bill is designed to provide a financial incentive for the development of the Upper Harbor Terminal Amphitheater in Minneapolis by offering a refundable tax exemption on construction materials. This exemption aims to reduce the overall cost of constructing the new public infrastructure.

Main Provisions

  • Tax Exemption: The bill establishes a sales and use tax exemption for materials, supplies, fixtures, furniture, and equipment used in the construction, renovation, or maintenance of the Upper Harbor Terminal Amphitheater.
  • Eligibility: This tax exemption applies to purchases made by contractors, subcontractors, or the operator of the amphitheater.
  • Timeframe: The eligible purchases must occur between June 30, 2025, and January 1, 2029.

Significant Changes to Existing Law

  • The bill provides a specific exemption from the existing sales and use tax laws set out in Minnesota Statutes chapter 297A.
  • Taxes on eligible purchases will initially be imposed as usual but refunded later according to the procedures in Minnesota Statutes section 297A.75.

Financial Details

  • Refunds: The tax, once collected, will be refunded in the same manner as other major state projects. This implies upfront payment of taxes will be necessary before receiving a refund.
  • Appropriation: The funds required to issue these refunds will be appropriated from the general fund and managed by the commissioner of revenue.

Relevant Terms

  • Tax exemption
  • Refundable exemption
  • Construction materials
  • Sales and use tax
  • Upper Harbor Terminal Amphitheater
  • General fund appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "This bill introduces a sales tax exemption for construction materials for a specific project."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references Minnesota Statutes section 297A.62, subdivisions 1 and 1a, regarding the sales tax rate.",
      "modified": [
        "The usual sales tax rate applies but is refunded for eligible purchases."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "A special refund process for the tax applied to materials for the amphitheater project."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill provides refund procedures similar to those outlined in Minnesota Statutes section 297A.75, subdivision 1, clause 17.",
      "modified": [
        "Provides a mechanism to refund tax collected on materials used in construction."
      ]
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

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