SF4857
Courthouse facility construction materials tax exemption provision
Legislative Session 94 (2025-2026)
Related bill: HF4934
AI Generated Summary
Purpose
- The bill aims to provide a sales and use tax exemption for materials, supplies, and equipment used in the construction, remodeling, expansion, or improvement of a county courthouse facility.
Main Provisions
- Adds a new subdivision (Subd. 55) to Minn. Stat. 2024 §297A.71:
- 55(a) Exemption: Materials and supplies used or consumed in, and equipment incorporated into, the construction, remodeling, expansion, or improvement of a county courthouse facility are exempt from sales and use tax.
- 55(b) Tax treatment: The tax on these eligible purchases is collected as if the tax rate under Minn. Stat. 297A.62, subd. 1 applied, and then refunded under Minn. Stat. 297A.75.
- References Minn. Statutes 2025 Supplement §297A.75, subdivision 1, to govern the refund process for the exempt purchases.
Significant Changes to Existing Law
- Creates an explicit sales and use tax exemption for construction materials and related equipment used in county courthouse facility projects.
- Establishes that tax on qualifying purchases is collected at the normal rate and then refunded, using the standard refund procedures in the referenced statute.
Scope and Applicability
- Applies specifically to county courthouse facilities (construction, remodeling, expansion, or improvement).
Potential Implications
- Counties may save money on building projects for courthouses due to the exemption.
- The bill outlines a clear tax collection and refund pathway to ensure proper handling of the exemption.
Practical Example (illustrative)
- If a county purchases concrete, lumber, wiring, and installed equipment for a courthouse project, these items would be exempt from sales tax, with the tax collected at purchase and then refunded according to the stated refund process.
Relevant Terms - exemption - sales and use tax - construction materials - materials and supplies used or consumed - equipment incorporated - construction remodeling expansion improvement - county courthouse facility - tax must be imposed and collected as if the rate applied - refunded - Minnesota Statutes 2024 section 297A.71 subdivision 55 - Minnesota Statutes 2025 Supplement section 297A.75 subdivision 1
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | Senate | Action | Introduction and first reading | ||
| March 25, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Subd. 55 establishes an exemption for materials and supplies used or consumed in and equipment incorporated into the construction, remodeling, expansion, or improvement of a county courthouse facility."
],
"removed": [],
"summary": "Adds a new subdivision to Minnesota Statutes 2024 section 297A.71 to exempt materials and supplies used or consumed in and equipment incorporated into the construction, remodeling, expansion, or improvement of a county courthouse facility.",
"modified": []
},
"citation": "297A.71",
"subdivision": "subd. 55"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The exempted materials are to be taxed as if the rate under Minnesota Statutes 297A.62, subdivision 1 applied and then refunded as provided in Minnesota Statutes 297A.75.",
"modified": [
"The tax treatment of the exemption references the rate in 297A.62, subd. 1 and the refund mechanism in 297A.75."
]
},
"citation": "297A.71",
"subdivision": "subd. 55"
},
{
"analysis": {
"added": [
"References 297A.62, subd. 1 for the applicable tax rate to be applied to the exemption."
],
"removed": [],
"summary": "The bill uses the rate specified in Minnesota Statutes 297A.62, subdivision 1 to apply the exemption established in 297A.71.",
"modified": [
"No change to the text of 297A.62; the bill relies on its rate for the exemption."
]
},
"citation": "297A.62",
"subdivision": "subd. 1"
},
{
"analysis": {
"added": [
"Uses the refund mechanism under 297A.75 to refund the exempt tax."
],
"removed": [],
"summary": "The exemption's refund is to be handled as provided in Minnesota Statutes 297A.75.",
"modified": []
},
"citation": "297A.75",
"subdivision": ""
},
{
"analysis": {
"added": [
"References 297A.75, subd. 1 in the 2025 Supplement for the refund of the exemption."
],
"removed": [],
"summary": "References Minnesota Statutes 2025 Supplement section 297A.75, subdivision 1, for the refund mechanism related to the exemption.",
"modified": []
},
"citation": "297A.75",
"subdivision": "subd. 1"
}
]Progress through the legislative process
In Committee