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HF4280 (Legislative Session 94 (2025-2026))

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

Related bill: SF4174

AI Generated Summary

Purpose

To reduce the cost of a local infrastructure project by providing a sales and use tax exemption (implemented as a refund) for construction materials used in building, upgrading, or remodeling a wastewater treatment facility in the City of Albert Lea.

Main Provisions

  • Exemption/refund for project materials: Materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Albert Lea wastewater treatment facility are exempt from sales and use tax under Minnesota law.
  • How the exemption works: The tax is collected as if the normal rate (per the relevant statute) applied, and then the amount is refunded through the same process used for other eligible projects.
  • Timing for refunds: Eligible refunds are not issued until after June 30.
  • Funding for refunds: The money needed to pay these refunds is appropriated from the general fund to the commissioner of revenue.

Significant Changes to Existing Law

  • Creates a targeted, local sales tax exemption/refund for a specific Albert Lea wastewater treatment facility project, using the state’s existing refund mechanisms (297A.62 and 297A.75).
  • Establishes a general fund appropriation to cover the refunds, routed through the commissioner of revenue.

Terminology and Related Terms

  • sales and use tax exemption
  • construction materials
  • wastewater treatment facility
  • City of Albert Lea
  • refund
  • Minnesota Statutes chapter 297A
  • 297A.62
  • 297A.75
  • general fund
  • commissioner of revenue
  • appropriation
  • eligible purchases

Relevant Terms

  • sales tax exemption
  • construction materials
  • wastewater treatment facility
  • Albert Lea
  • refund
  • general fund appropriation
  • commissioner of revenue
  • 297A.62
  • 297A.75

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2026HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes chapter 297A as the basis for the proposed sales and use tax exemption/refund mechanism related to construction materials for a wastewater treatment facility project in Albert Lea.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minn. Stat. 297A.62, governing the tax rate and base for sales and use tax, including subdivisions 1 and 1a applicable to the exemption described.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minn. Stat. 297A.75, subdivision 1, clause 17, relating to refunds for eligible purchases under the exemption.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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