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HF471 (Legislative Session 94 (2025-2026))

Refundable sales and use tax exemption provided for construction materials for a Benton County government center.

Related bill: SF1306

AI Generated Summary

Purpose

This proposal would establish a temporary, refundable exemption from Minnesota sales and use taxes for construction materials, supplies, and equipment used in building a Benton County government center in the city of Foley.

What is exempt and the timeframe

  • Eligible purchases: materials, supplies, and equipment that are incorporated into the construction of the Benton County government center in Foley.
  • Time window: purchases made after March 31, 2025 and before January 1, 2030.

How the exemption works

  • The exemption is treated as a refundable exemption. Taxes would be collected as if the standard rate under Minn. Stat. 297A.62(1) applied, and then refunded in the same way as refunds for other projects under Minn. Stat. 297A.75, subdivision 1, clause 17.

Timing of refunds

  • Refunds for eligible purchases will not be issued until after June 30, 2025.

Appropriation and funding

  • The money needed to pay these refunds is appropriated from the general fund to the Commissioner of Revenue.

Significance and scope

  • The measure creates a temporary, project-specific tax incentive rather than broadening ongoing exemptions, applying only to a single county project (the Benton County government center in Foley) during a limited time period.

Administration and legal references

  • Applies under Minnesota Statutes chapter 297A, including the tax rate provision (297A.62(1)) and the refund mechanism used for projects (297A.75, subdivision 1, clause 17).

Relevant Terms - sales and use tax - exemption - refundable exemption - refunds - construction materials - materials and supplies - equipment - Benton County - Foley - county government center - Minnesota Statutes chapter 297A - 297A.62(1) - 297A.75 subdivision 1 clause 17 - general fund - Commissioner of Revenue - appropriation - timing: after March 31, 2025; before January 1, 2030; refunds after June 30, 2025

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes chapter 297A (sales and use tax) as the broader statutory framework for the exemption.",
      "modified": []
    },
    "citation": "Minnesota Statutes chapter 297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites the rate provision to apply the tax rate and then refund it for the exemption under 297A.62, subdivision 1.",
      "modified": []
    },
    "citation": "Minnesota Statutes section 297A.62, subdivision 1",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites the refund mechanism for eligible purchases under 297A.75, subdivision 1, clause 17.",
      "modified": []
    },
    "citation": "Minnesota Statutes section 297A.75, subdivision 1 clause 17",
    "subdivision": "subdivision 1 clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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