HF151 (Legislative Session 94 (2025-2026))
Apple Valley; refundable sales and use tax exemption provided for building materials for the Central Maintenance Facility project, and money appropriated.
Related bill: SF1570
AI Generated Summary
Purpose
Provide a temporary, refundable exemption from sales and use tax for building materials used in constructing the Central Maintenance Facility in Apple Valley. The goal is to support the completion of this specific public project by reducing eligible material costs.
Main Provisions
- Exemption/refund for materials and equipment used or consumed in construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Central Maintenance Facility in Apple Valley.
- Eligible purchases must occur after February 28, 2025 and before August 1, 2028.
- The tax is collected as usual at the applicable rate (under Minnesota Statutes 297A.62) and then refunded to the purchaser in the same manner as other qualified projects (per Minnesota Statutes 297A.75, subdivision 1, clause 17).
- Refunds may not be paid before July 1, 2025.
- An appropriation is provided from the General Fund to the Commissioner of Revenue to pay these refunds.
Timeline and Conditions
- Purchase window: February 28, 2025 → August 1, 2028.
- Refund process: follows the standard refund method for eligible projects; not payable before July 1, 2025.
Funding and Administration
- Funding for the refunds comes from an appropriation of the General Fund.
- Administration of the refunds is handled by the Commissioner of Revenue, following existing procedures for project refunds.
Significance and Impact
- Creates a targeted, temporary sales tax relief for a specific public works project (the Central Maintenance Facility in Apple Valley).
- Changes current law by adding a time-limited exemption/refund mechanism and an appropriation to support the refunds.
- Potentially lowers project costs and could influence procurement decisions for the facility by reducing tax on building materials.
Practical Implications for Stakeholders
- Builders and suppliers for the Apple Valley project may experience a reduction in sales tax billed at the point of purchase, with the reduction realized as a refund.
- Local government and project planners benefit from the funding mechanism and the streamlined use of existing refund processes.
- State revenue is affected for the duration of the exemption/refund window, due to the temporary relief.
Relevant Terms
- sales and use tax exemption
- refunds
- materials and supplies
- construction, reconstruction, upgrade, expansion, renovation, remodeling
- Central Maintenance Facility
- Apple Valley
- Minnesota Statutes chapter 297A (including sections 297A.62 and 297A.75)
- general fund appropriation
- Commissioner of Revenue
- eligibility window (after Feb 28, 2025 and before Aug 1, 2028)
- refunds not paid before July 1, 2025
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 10, 2025 | House | Action | Introduction and first reading, referred to | Taxes | |
| February 17, 2025 | House | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This act provides a refundable sales tax exemption for building materials for the Central Maintenance Facility project in Apple Valley, referencing Minnesota Statutes chapter 297A to authorize exemptions and refund mechanics.",
"modified": []
},
"citation": "Minnesota Statutes chapter 297A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Applies the normal tax rate under 297A.62 subdivisions 1 and 1a to the exempt materials and then refunds it as provided for projects.",
"modified": []
},
"citation": "297A.62",
"subdivision": "1 and 1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the refunds mechanism under 297A.75 subdivision 1 clause 17 for refunds of the exemption.",
"modified": []
},
"citation": "297A.75",
"subdivision": "1, clause 17"
}
]Progress through the legislative process
In Committee