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SF3465 (Legislative Session 94 (2025-2026))

City of Dilworth community center construction materials refundable exemption provision and appropriation

Related bill: HF3234

AI Generated Summary

Purpose of the Bill

The bill aims to provide tax relief for the construction of a community center in the city of Dilworth, Minnesota. It achieves this by introducing a refundable sales and use tax exemption for materials and equipment used in the project.

Main Provisions

  • Refundable Tax Exemption: The bill provides a refund for sales and use taxes paid on construction materials, supplies, and equipment used in building or upgrading the community center in Dilworth.
  • Eligible Time Frame: To qualify for this exemption, purchases must be made between December 31, 2024, and June 30, 2027.
  • Refund Process: The taxes must be initially imposed and collected under existing Minnesota Statutes (Chapter 297A) and then refunded according to procedures outlined in section 297A.75. However, the applicant for these refunds must be the governmental entity that owns or contracts the project.
  • Refund Issuance Date: Refunds will only be issued for eligible purchases made after June 30, 2025.

Significant Changes to Existing Law

This bill temporarily modifies the typical application of sales and use tax on construction-related materials for a specific community project by allowing for a post-collection refund process managed by the responsible governmental entity.

Relevant Terms

  • Sales Tax
  • Use Tax
  • Tax Exemption
  • Refundable Exemption
  • Community Center Construction
  • City of Dilworth
  • Minnesota Statutes Chapter 297A
  • Governmental Entity

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A specific refundable exemption for community center construction materials."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill discusses the imposition of sales tax rates under section 297A.62 for a construction project in the city of Dilworth.",
      "modified": [
        "Clarified which sales tax rates apply before a refund is processed."
      ]
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Specifies that the governmental entity must apply for the refund."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill aligns the refund process with the existing procedure detailed in section 297A.75.",
      "modified": [
        "Refund timing adjusted to not be issued until after a specific date."
      ]
    },
    "citation": "297A.75",
    "subdivision": ""
  }
]

Sponsors