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HF520 (Legislative Session 94 (2025-2026))

Becker Public School District refundable construction exemption provided.

Related bill: SF70

AI Generated Summary

Purpose

Provide a temporary, refundable sales and use tax exemption for construction materials, supplies, and equipment used in specific Becker Public School District projects. The goal is to reduce project costs for building and renovating several Becker schools and facilities.

Main Provisions

  • Exemption and refunds for Becker projects:
    • Materials, supplies, and equipment used in construction or renovation for the following Becker facilities are eligible:
    • Becker Early Childhood
    • Becker Primary School
    • Becker Intermediate School
    • Becker Middle School
    • Becker High School
    • Becker Transportation Building
    • Becker Multi-Purpose Athletic Facility
    • The exemption applies only to purchases made after December 31, 2021 and before January 1, 2025.
    • The tax is collected as if the standard rate under Minnesota Statutes 297A.62 (and related subdivisions) applied, and then refunded in the same way as project refunds described in 297A.75, subdivision 1, clause 17.
    • Refunds for eligible purchases are not issued until after June 30, 2025.
  • Appropriation for refunds:
    • The money needed to pay these refunds is appropriated from the general fund to the commissioner of revenue.

Timing and Scope

  • Eligible purchases window: 12/31/2021 through 12/31/2024 (inclusive).
  • Refund timing: refunds are issued after June 30, 2025.
  • Geographic/organizational scope: Only Becker Public School District (Independent School District No. 726) projects listed above.

Financial and Administrative Details

  • Tax treatment: Purchases are taxed upfront as if the normal rate applies, then eligible refunds are provided under existing refund procedures (linked to 297A.75, clause 17).
  • Funding source: Refunds are paid from the general fund via the commissioner of revenue.
  • Administration: Follows existing Minnesota refund mechanisms for construction projects.

Significance

  • This bill creates a temporary, refundable tax relief specifically for Becker Public School District construction and renovation projects, potentially reducing the overall cost of those projects during the eligible period.

Relevant Terms Becker Public School District; Independent School District No. 726; sales tax; use tax; Minnesota Statutes 297A; 297A.62; 297A.75; refunds; refunds process; general fund; commissioner of revenue; appropriation; construction materials; equipment; renovations; Early Childhood; Primary School; Intermediate School; Middle School; High School; Transportation Building; Multi-Purpose Athletic Facility; refundable construction exemption; 2021-2024 purchase window.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References applying the sales tax rate and refund mechanics under Minnesota Statutes 297A.62, subd. 1, for the Becker Public School District construction materials exemption.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References applying the sales tax rate under Minnesota Statutes 297A.62, subd. 1a, in the Becker Public School District exemption.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes 297A.75, subd. 1, clause (17) concerning refunds, used to govern timing of refunds for eligible purchases.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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