HF156 (Legislative Session 94 (2025-2026))
Olmsted County; refundable sales and use tax exemption provided for construction materials for a regional exhibition center.
Related bill: SF782
AI Generated Summary
Purpose
This bill creates a temporary, refundable exemption from Minnesota sales and use tax for construction materials used on a specific project: a regional exhibition center at Graham Park in Olmsted County. The goal is to reduce the upfront cost of building this facility by allowing the project to recover the sales tax paid on eligible materials.
What is exempt
- Materials and supplies used or consumed in, and equipment incorporated into, the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the regional exhibition center at Graham Park in Olmsted County.
- These items must be purchased within the eligible time window (see Timing) to qualify for the exemption.
- The exemption applies as a refundable tax mechanism instead of a direct tax break.
Timing and eligibility window
- The exemption applies to materials and equipment purchased after December 31, 2024 and before January 1, 2028.
- The exemption is available only for the Olmsted County regional exhibition center project at Graham Park.
How the refund works
- The bill changes how tax is collected and refunded for these purchases. The tax is imposed and collected as if the standard rate under Minnesota law applies (the rate described in Minnesota Statutes section 297A.62, subdivisions 1 and 1a).
- After collection, the tax is refunded using the same process that applies to other qualified projects under Minnesota Statutes section 297A.75, subdivision 1, clause 17. This means the project ends up getting the sales tax back through a refund rather than paying it.
Funding and administration
- The money needed to pay the refunds is appropriated from Minnesota’s general fund to the commissioner of revenue.
- The commissioner of revenue will handle and process the refunds, using the existing statutory framework for project refunds.
Significant changes to existing law
- Introduces a temporary, refundable sales and use tax exemption specifically for construction materials for the Graham Park regional exhibition center in Olmsted County.
- Uses the normal tax collection process followed by a subsequent refund, rather than a direct exemption at the point of sale.
- Allocates funds from the general fund to reimburse this refund, placing the cost of the exemption in the state budget.
Relevant Terms - sales and use tax - refundable exemption - construction materials - regional exhibition center - Graham Park - Olmsted County - Minnesota Statutes chapter 297A - 297A.62 (subdivisions 1 and 1a) - 297A.75 (subdivision 1, clause 17) - appropriation - general fund - commissioner of revenue - refund process - purchase window (after 12/31/2024 and before 1/1/2028)
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 10, 2025 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Establishes a refundable exemption under Minnesota Statutes chapter 297A for materials used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Olmsted County regional exhibition center."
],
"removed": [],
"summary": "This act creates a refundable sales and use tax exemption for materials used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a regional exhibition center in Olmsted County (Graham Park).",
"modified": [
"No direct amendments to the text of Minnesota Statutes themselves; the exemption operates under the existing framework of 297A."
]
},
"citation": "297A",
"subdivision": ""
},
{
"analysis": {
"added": [
"Applies the rate structure of Minnesota Statutes 297A.62, subdivisions 1 and 1a, to the eligible materials and provides for a refund under 297A.75, subdivision 1, clause 17."
],
"removed": [],
"summary": "The bill directs that the tax on eligible construction materials be imposed and collected as if the rate under 297A.62, subdivisions 1 and 1a, applied, and then refunded under 297A.75, subdivision 1, clause 17.",
"modified": [
"No direct amendments to 297A.62; the bill relies on the existing rate provisions to implement the exemption."
]
},
"citation": "297A.62",
"subdivision": "subdivisions 1 and 1a"
},
{
"analysis": {
"added": [
"References and applies the refund process in Minnesota Statutes 297A.75, subdivision 1, clause 17, for eligible materials."
],
"removed": [],
"summary": "The exemption's refunds are to be administered under the refund mechanism in 297A.75, subdivision 1, clause 17.",
"modified": [
"No modifications to 297A.75; the bill uses its existing refund mechanism."
]
},
"citation": "297A.75",
"subdivision": "subdivision 1, clause 17"
}
]Progress through the legislative process
In Committee