Purpose

Provide a temporary, refundable exemption from Minnesota sales and use tax for construction materials and equipment used in specific projects in the city of Wayzata. The goal is to support public improvements and recreational facilities around Lake Minnetonka.

Main Provisions

• Exemption scope: Materials, supplies, and equipment used in and incorporated into eligible Wayzata projects are exempt from sales and use tax if purchased between December 31, 2025 and July 1, 2030.
• Eligible projects in Wayzata: 1) Expansion and remodeling of Depot Park 2) Construction of community docks for access to Lake Minnetonka 3) Shoreline restoration, including native plants, trees, and natural habitat 4) Restoration of the Section Foreman House, including a learning center for indoor and outdoor classrooms and community space 5) Construction of Eco Park, including shoreline restoration, marsh and water quality improvements, a pier extension of the lakeside boardwalk, and ecoliving classrooms 6) Construction of a regional multiuse trail
• How the exemption works: The tax is collected as if the standard rate under Minnesota Statutes chapter 297A applied, and then refunded in the same manner as other approved refunds under Minnesota law.
• Refund timing: Refunds for eligible purchases may not be issued until after June 30, 2026.
• Administration of refunds: Refunds are processed through the state refund system, using existing provisions (as referenced in sections 297A.62 and 297A.75, paragraph 1, clause 17).

Funding and Financial Details

• Appropriation: The money needed to fund these refunds is appropriated from the general fund to the commissioner of revenue.

Timing and Scope Considerations

• Purchase window: Only purchases made within the window from January 1, 2026? (Note: the text specifies purchases after December 31, 2025 and before July 1, 2030.)
• Local focus: The exemption applies specifically to projects within the city of Wayzata.

Significant Changes to Existing Law

• Introduces a temporary, refundable sales tax exemption for specified Wayzata construction projects, distinct from a permanent exemption.
• Requires state funding (general fund appropriation) to cover refunds rather than leaving refunds to local sources.
• Ties the exemption to a defined project list and a defined time window, with refunds administered under existing state refund procedures.

Relevant Terms - Wayzata - sales tax exemption - refundable exemption - construction materials - materials and supplies - equipment - Depot Park - community docks - Lake Minnetonka - shoreline restoration - native plants - natural habitat - Section Foreman House - learning center - indoor and outdoor classroom - Eco Park - marsh improvements - water quality - boardwalk - ecoliving classrooms - regional multiuse trail - refunds - general fund - commissioner of revenue - Minnesota Statutes 297A.62 - Minnesota Statutes 297A.75