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SF155 (Legislative Session 94 (2025-2026))

Windom Independent School District sales and use tax exemption for construction materials authorization

Related bill: HF890

AI Generated Summary

Purpose

This bill would create a refundable sales and use tax exemption for construction materials used in specific projects for the Windom Independent School District (ISD). The exemption applies to materials, supplies, and equipment used in the listed projects if purchased within a defined time window. The goal is to reduce the tax burden on construction costs for these district improvements.

What is exempt and how it works

  • Eligible items: Materials and supplies used or consumed in, and equipment incorporated into, construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Windom ISD projects.
  • Projects covered:
    • Outdoor athletic complex
    • Locker room remodel
    • Gymnastics and wrestling space
    • Performing arts center
  • Time window: Purchases must occur after June 30, 2024 and before January 1, 2027.
  • How the exemption operates: The bill says the tax would be imposed and collected as if the current sales/use tax rate (as described in Minnesota Statutes) applied, and then the amount would be refunded in the same way as other approved projects under the state refund process.
  • Refund mechanism: The refund follows the same process outlined in Minnesota Statutes section 297A75, subdivision 1, clause 17.

Funding and administration

  • Funding source: The money used to pay the refunds is appropriated from the state General Fund.
  • Administration: The refund payments are handled by the commissioner of revenue.

Changes to current law

  • Creates a new, targeted, refundable exemption for specified Windom ISD construction projects, rather than a broad, general exemption. It ties the exemption to a specific purchase window and to a defined list of projects.
  • Uses the existing refund framework (as provided by Minnesota Statutes) to deliver the tax savings.

Effective date and scope

  • Effective scope is limited to purchases made within the defined date window (after June 30, 2024 and before January 1, 2027) for the four listed Windom ISD projects.
  • No other school districts or projects are mentioned; this is a targeted, district-specific exemption.

Potential impacts

  • For Windom ISD and its suppliers, construction costs for the four projects may be reduced by the refunded sales and use tax.
  • The state would need to allocate General Fund money to cover the refunds through the commissioner of revenue.

Relevant Terms - sales tax - use tax - exemption - refundable exemption - Windom Independent School District - construction materials - materials and supplies - equipment - outdoor athletic complex - locker room remodel - gymnastics space - wrestling space - performing arts center - Minnesota Statutes chapter 297A - 297A62 - 297A75 - general fund - commissioner of revenue - appropriation - purchase window - refund mechanism

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 16, 2025SenateActionIntroduction and first reading
January 16, 2025SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Creates a refundable sales and use tax exemption for construction materials, supplies, and equipment used in specified Windom Independent School District projects (outdoor athletic complex, locker room remodel, gymnastics and wrestling space, performing arts center) purchased after 6/30/2024 and before 1/1/2027."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references Minnesota Statutes Chapter 297A (sales and use tax) as the governing framework for the Windom ISD exemption.",
      "modified": [
        ""
      ]
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "The tax is imposed and collected as if the rate under 297A.62, subd. 1 and 1a, applied and then refunded in the same manner as projects under 297A.75, subd. 1, clause 17."
      ],
      "removed": [
        ""
      ],
      "summary": "The tax exemption is to be imposed and collected as if the rate under Minnesota Statutes section 297A.62, subdivisions 1 and 1a, applied, with refunds processed as provided elsewhere in the bill.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.62",
    "subdivision": "subd 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Refunds for the exemption are provided under 297A.75, subd. 1, clause 17."
      ],
      "removed": [
        ""
      ],
      "summary": "The refund mechanism for the exemption is described in Minnesota Statutes section 297A.75, subd. 1, clause 17.",
      "modified": [
        ""
      ]
    },
    "citation": "297A.75",
    "subdivision": "subd 1, clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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