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SF158 (Legislative Session 94 (2025-2026))

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

Related bill: HF870

AI Generated Summary

Purpose

This bill provides a temporary, refundable sales and use tax exemption for construction materials used in specific projects within Ellsworth Independent School District No. 514. The goal is to reduce costs for upgrading and renovating district facilities by waiving state and local tax on eligible materials purchased within a defined date window.

Main Provisions

  • Subdivision 1: Exemption refund

    • Eligible projects in Ellsworth School District No. 514 (ISD 514) include: 1) Replacement of a boiler system with a heating and cooling HVAC system 2) Replacement of windows in the elementary wing 3) Replacement of the gym roof and shop roof 4) Replacement of fuel oil with propane for the new HVAC system 5) Installation of a new electrical system for the new HVAC system 6) Building tuckpointing 7) Renovation of the bus garage
    • Eligible materials and equipment: Materials, supplies, and equipment used or consumed in and incorporated into these construction, reconstruction, upgrade, expansion, renovation, or remodeling projects.
    • Time frame: Purchases must occur after December 31, 2024 and before October 1, 2025.
    • How the exemption works: The tax is collected as it normally would be (at the standard rate for sales and use tax). The collected tax is then refunded to the purchaser using the same refund process described for other approved projects under Minnesota law (the refund mechanism referenced in 297A75, subdivision 1, clause 17).

  • Subdivision 2: Appropriation

    • The funds to cover these refunds come from the general fund and are appropriated to the commissioner of revenue.

Significance and Existing Law Interaction

  • This bill creates a targeted, temporary tax relief for a specific school district’s construction projects, rather than a broad change to tax policy.
  • It relies on the existing refund framework for project-based tax refunds and requires a general fund appropriation to finance the refunds.

Administration

  • The commissioner of revenue would administer the refunds through the established process for project refunds (29A75, subdivision 1, clause 17), mirroring how similar project refunds are handled.

Timing and Scope

  • The exemption applies only to purchases within the defined window (after 12/31/2024 and before 10/01/2025) and only for the listed Ellsworth ISD 514 projects.

Relevant Terms - sales and use tax - refundable exemption - construction materials - Ellsworth Independent School District No. 514 - HVAC system - boiler replacement - windows replacement - gym roof - shop roof - fuel oil to propane conversion - electrical system - tuckpointing - bus garage renovation - general fund appropriation - commissioner of revenue - Minnesota Statutes 297A - Minnesota Statutes 297A75 subdivision 1 clause 17

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes chapter 297A concerning sales and use tax exemptions and refunds.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill directs the exemption to be imposed and collected as if the rate under 297A62 subdivisions 1 and 1a applied, with refunds handled under 297A75 subdivision 1 clause 17.",
      "modified": []
    },
    "citation": "297A62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References 297A75 subdivision 1 clause 17 for the refund mechanism of the exemption.",
      "modified": []
    },
    "citation": "297A75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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