SF3744

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