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SF3744 (Legislative Session 94 (2025-2026))

Refundable exemption for certain items and services purchased to repair property damage caused by natural disasters creation

Related bill: HF3501

AI Generated Summary

Purpose

Create a refundable sales tax exemption for items and services purchased to repair or remediate property damage caused by a natural disaster in Minnesota.

Main Provisions

  • Adds a new exemption for the following items and related services when used to repair or remediate damage from a natural disaster:
    • windows
    • doors
    • siding materials
    • insulation
    • trusses, shingles, and other roofing materials
    • power generators
    • equipment used for sandbagging
    • replacement parts for pumps, valves, and other small equipment
    • plywood
    • tree removal and other debris-hauling services
  • The exemption applies only to purchases made to repair damage from a natural disaster.

Eligibility & Conditions

  • A natural disaster must be declared by either the federal government or a local official under section 12.29.
  • The purchase must be made within two years of the disaster declaration.

Tax Treatment

  • The tax for purchases covered by this exemption is collected at the time of sale as if the standard Minnesota sales tax rates (section 297A.62, subdivisions 1 and 1a) applied.
  • The collected tax is then refunded to the purchaser under the refund process described in section 297A.75 (i.e., a refundable exemption).

Changes to Existing Law

  • Creates a new subdivision (Subd. 41) in Minnesota Statutes 2024 section 297A.67 to establish the repairs-after-disaster exemption.
  • References Minnesota Statutes 2025 Supplement section 297A.75 for the refund mechanism.
  • Establishes a two-year window from disaster declaration for eligibility.

Relevant Terms - refundable exemption - exemption - natural disaster - disaster declaration - federal disaster declaration - local disaster declaration - section 12.29 - Minnesota Statutes 2024 section 297A.67 - Subd. 41 (new) - Minnesota Statutes 2025 Supplement section 297A.75 - section 297A.62 (rates) - section 297A.75 (refund process) - windows, doors, siding materials, insulation, trusses, roofing materials (shingles and others) - power generators - sandbagging equipment - replacement parts for pumps and valves - plywood - tree removal - debris hauling services - two-year time window

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2026SenateActionIntroduction and first reading
February 23, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new Subd. 4.1 implementing a repairs-following-a-natural-disaster exemption with enumerated eligible items (e.g., windows, doors, siding, insulation, trusses, roofing materials, generators, sandbagging equipment, replacement parts, plywood, tree removal and related hauling).",
        "The exemption applies only if a natural disaster is declared by the federal government or a local official under section 12.29 and the purchase occurs within two years of the declaration.",
        "The tax exemption is to be imposed and collected as if the rates under Minn. Stat. § 297A.62, subds. 1 and 1a, apply, and then refunded under Minn. Stat. § 297A.75."
      ],
      "removed": [],
      "summary": "Adds a new subdivision to Minnesota Statutes 2024 section 297A.67 creating a refundable sales tax exemption for purchases to repair or remediate damage to property caused by a natural disaster, with a defined list of eligible items and conditions.",
      "modified": []
    },
    "citation": "297A.67",
    "subdivision": "subd. 4.1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minn. Stat. 12.29 as the basis for disaster declarations (federal or local) related to the exemption in 297A.67 Subd. 4.1.",
      "modified": []
    },
    "citation": "12.29",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The exemption in 297A.67 Subd. 4.1 is to be applied and refunded using the same rate framework as Minn. Stat. 297A.62, subds. 1 and 1a.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1, subd. 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Uses the refund mechanism under Minn. Stat. 297A.75 for processing refunds of the 297A.67 Subd. 4.1 exemption.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, subd. 2, subd. 3"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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