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HF148 (Legislative Session 94 (2025-2026))

Delano; refundable sales and use tax exemption provided for construction materials for an ice rink.

Related bill: SF1155

AI Generated Summary

Purpose

To provide a refundable sales and use tax exemption for the construction materials and equipment used to build, upgrade, or renovate an ice rink in the city of Delano.

Main Provisions

  • Exemption for materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of an ice rink in Delano from sales and use tax under Minnesota law.
  • Eligibility window: purchases must occur after November 30, 2023 and before January 1, 2026.
  • How the exemption works: the tax is collected as if the standard tax rate applied, and then the amount is refunded in the same manner as other project refunds under state statute.
  • Refund timing: refunds for eligible purchases cannot be issued until after June 30, 2025.
  • The exemption is described as a refundable exemption rather than a permanent exemption.

Timing and Refund Process

  • Purchases must be made within the specified window (post-11/30/2023 and pre-01/01/2026).
  • Refunds follow the same process used for other project refunds under Minnesota statutes, but with the specified timing constraint that refunds are not issued until after June 30, 2025.

Funding and Appropriation

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

Significance and Potential Impact

  • Targets a specific local project (Delano ice rink) with a temporary, refundable tax relief on construction materials.
  • Creates a state budget mechanism to reimburse the refunded sales tax through a general fund appropriation, affecting the timing of cash flows for both taxpayers and state finances.

Key Considerations

  • This is a targeted, time-limited measure rather than a broad, permanent tax change.
  • The arrangement requires administrative processing of refunds through the usual project-refund framework, with a defined post-2025 release for refunds.

Relevant Terms sales and use tax, exemption, refundable exemption, construction materials, ice rink, Delano, Minnesota Statutes chapter 297A, 297A.62, 297A.75, refunds, refunds timing, general fund, commissioner of revenue, appropriation, purchase window, eligible purchases, materials and equipment, construction, renovation, remodeling, upgrade, expansion, reconstruction.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 10, 2025HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Creates a sales tax exemption for materials and supplies used in Delano ice rink construction/renovation under Minn. Stat. ch. 297A.",
        "Specifies that refunds for eligible purchases are processed under the framework of 297A.75, subdivision 1, clause 17."
      ],
      "removed": [],
      "summary": "This bill provides a temporary sales and use tax exemption under Minn. Stat. ch. 297A for construction materials used in constructing, upgrading, expanding, remodeling, or renovating an ice rink in the City of Delano, purchased after November 30, 2023 and before January 1, 2026.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Tax on exempt materials is imposed as if the standard rate under 297A.62, subd. 1 applies, with the exemption refunded per 297A.75, subd. 1, cl. 17."
      ],
      "removed": [],
      "summary": "Describes how the exemption is to be treated for tax purposes, applying the rate under Minn. Stat. section 297A.62, subdivision 1 to the eligible purchases and then refunding the amount under 297A.75, subdivision 1, clause 17.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1"
  },
  {
    "analysis": {
      "added": [
        "Adds a timing constraint for refunds (after June 30, 2025) related to the Delano ice rink materials exemption."
      ],
      "removed": [],
      "summary": "Specifies that refunds for eligible purchases must not be issued until after June 30, 2025, and that refunds are processed in the same manner as for other projects under 297A.75, subdivision 1, clause 17.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, clause (17)"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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