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HF1227 (Legislative Session 94 (2025-2026))

Lakeville; refundable sales and use tax exemption provided for construction materials.

Related bill: SF1868

AI Generated Summary

Purpose

Provide a temporary, city-specific sales tax exemption and refund for construction materials used to build a new public safety training facility in the City of Lakeville, Minnesota.

Main Provisions

  • Exemption/refund scope: Materials, supplies, and equipment used or consumed in and incorporated into the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the new public safety training facility are exempt from sales and use tax.
  • Legal basis: The exemption operates under Minnesota Statutes chapter 297A. The tax is collected as if the standard rate under 297A.62 (subds. 1 and 1a) applied and then refunded using the same process described for projects under 297A.75, subdivision 1, clause 17.
  • Time window: Eligible purchases must occur after February 28, 2025 and before September 1, 2026.
  • Refund timing: Refunds for eligible purchases will not be issued until after June 30, 2025.

Mechanism and Timing

  • Tax handling: The purchase is taxed at the applicable rate, then the tax is refunded following the established refund process for other eligible projects.
  • Refund interval: The availability of refunds begins after June 30, 2025.

Fiscal/Administrative Details

  • Funding source: The amount needed to pay refunds is appropriated from the general fund to the commissioner of revenue.
  • Administration: Refunds follow the existing framework in Minnesota Statutes 297A.75, subdivision 1, clause 17.

Scope, Limitations, and Significance

  • Local scope: Applies specifically to Lakeville and not statewide.
  • Project focus: Limited to a “new public safety training facility.”
  • Materials covered: Includes materials and supplies used or consumed in construction and equipment incorporated into the project.
  • Policy significance: Creates a temporary subsidy to reduce construction costs for a specific public facility by deferring or rebating sales tax through an approved refund mechanism.

Relevant Terms - Lakeville - sales tax exemption - refunds - construction materials - equipment - public safety training facility - Minnesota Statutes chapter 297A - 297A.62 - 297A.75 - general fund - commissioner of revenue - appropriation - refunds timing (after June 30, 2025) - eligible purchases window (Feb. 28, 2025 to Sep. 1, 2026)

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 20, 2025HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces a temporary exemption from sales and use tax for construction materials and equipment used in the Lakeville facility; refunds are governed by existing 297A procedures."
      ],
      "removed": [],
      "summary": "Implements a refundable sales and use tax exemption for construction materials used in a Lakeville public safety training facility, with eligibility tied to purchases between February 28, 2025 and September 1, 2026; the exemption follows existing refund mechanisms under chapter 297A.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Exemption applies to purchases after February 28, 2025 and before September 1, 2026."
      ],
      "removed": [],
      "summary": "Exempts materials and supplies used or consumed in and equipment incorporated into the construction/renovation/upgrade/expansion of a new public safety training facility from sales and use tax, under Minn. Stat. 297A, subd. 1.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1"
  },
  {
    "analysis": {
      "added": [
        "Links the exemption rate to subd. 1a and uses the refund method from 297A.75, subd. 1, clause 17."
      ],
      "removed": [],
      "summary": "Specifies that the exemption is applied at the rate under Minn. Stat. 297A.62, subd. 1 and 1a, and refunded using the same process as under Minn. Stat. 297A.75, subd. 1, clause 17.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1a"
  },
  {
    "analysis": {
      "added": [
        "Refund processing per 297A.75, subd. 1, clause (17)."
      ],
      "removed": [],
      "summary": "Uses the refunds mechanism under Minn. Stat. 297A.75, subd. 1, clause (17) for eligible purchases under the Lakeville exemption.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, clause (17)"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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