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SF3883 (Legislative Session 94 (2025-2026))

Washington county refundable exemption for construction materials provision for certain projects

Related bill: HF3932

AI Generated Summary

Purpose

Introduce a temporary sales and use tax exemption for construction materials on two specified projects in Washington County (Stafford Library Remodel and South Highway Shop). The exemption applies to materials purchased within a defined time window and is designed to reduce the tax burden for these projects.

Scope of exemption and eligible purchases

  • Materials, supplies, and equipment used or consumed in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Stafford Library Remodel project and the South Highway Shop project are exempt from sales and use tax.
  • The exemption applies only if purchases occur after June 30, 2026 and before January 1, 2029.
  • The exemption is tied to Minnesota Statutes chapter 297A and applies specifically to these projects in Washington County.

How the exemption is administered

  • The tax on eligible purchases is to be imposed and collected as if the standard rate from Minn. Stat. 297A.62 (subdivisions 1 and 1a) applied, and then refunded in the same manner used for other eligible projects under Minn. Stat. 297A.75 (subdivision 1, clause 17).

Timing and refunds

  • Refunds for eligible purchases are not issued until after June 30, 2026.
  • The timing aligns with the exemption window and the processing rules for refunds under the referenced statutes.

Funding and administration

  • The money needed to pay the refunds is appropriated from the general fund to the commissioner of revenue.

Significance and changes to law

  • Creates a temporary sales tax exemption for specified construction materials on two Washington County projects.
  • Adjusts the normal tax collection process by applying the exemption in a way consistent with existing tax rules and refund processes.
  • Establishes a funding mechanism from the general fund to reimburse refunds through the commissioner of revenue.

Practical impact

  • Suppliers and contractors working on the Stafford Library Remodel and the South Highway Shop in Washington County may experience reduced upfront costs due to the exemption, with refunds issued after the designated date range if eligible.

Relevant Terms - sales tax exemption - construction materials - Washington County - Stafford Library Remodel project - South Highway Shop project - Minnesota Statutes chapter 297A - refund - appropriation - general fund - commissioner of revenue - eligible purchases - after June 30, 2026 - before January 1, 2029 - 297A.62 - 297A.75 - clause 17

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2026SenateActionIntroduction and first reading
February 26, 2026SenateActionReferred toTaxes
March 09, 2026SenateActionChief author stricken, shown as co-author
March 09, 2026SenateActionChief author added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references Minnesota Statutes chapter 297A to authorize a refundable sales and use tax exemption for construction materials for two Washington County projects. It does not itself create new law or amend chapter 297A.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill provides that the tax on eligible purchases is to be imposed and collected as if the rate under 297A.62, subdivisions 1 and 1a, applied, and then refunded in the same manner provided for refunds under 297A.75, subdivision 1, clause 17.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subdivisions 1 and 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references refunds under 297A.75, subdivision 1, clause 17, to issue refunds for eligible purchases after June 30, 2026.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subdivision 1 clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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