SF66 (Legislative Session 94 (2025-2026))
Maple Grove refundable exemption provision for construction materials
Related bill: HF1127
AI Generated Summary
Purpose
Provide a temporary, refundable exemption from Minnesota sales and use tax for construction materials used in the Maple Grove Community Center project. The exemption applies to materials purchased between March 31, 2024 and June 1, 2029, and is designed to reduce the cost of construction by allowing the tax to be refunded after it is collected.
Main Provisions
- Subdivision 1 – Exemption refund:
- Materials, supplies, and equipment used or consumed in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Maple Grove Community Center are exempt from sales and use tax.
- The exemption applies only to eligible purchases made after March 31, 2024 and before June 1, 2029.
- The tax is collected as if the standard rate applies, and then refunded in the same manner used for other refundable projects under existing law.
- Subdivision 2 – Appropriation:
- The money needed to pay these refunds is appropriated from the general fund to the commissioner of revenue.
Significance and How It Works (What it changes)
- This creates a temporary, refundable exemption specifically for the Maple Grove Community Center project, rather than a permanent tax exemption.
- It changes how the tax is processed for eligible purchases: taxes are collected at the point of sale and then refunded through the approved refund process.
- It ties funding for the refunds to a general fund appropriation to the commissioner of revenue, ensuring the refunds are paid.
Effective Window and Scope
- Applies to construction materials, supplies, and equipment used in the Maple Grove Community Center project.
- Eligible purchases must occur between March 31, 2024 and June 1, 2029.
Practical Impact
- Reduces the overall cost of the Maple Grove Community Center project by recovering sales and use tax paid on qualifying materials.
- Helps Maple Grove manage project costs within the stated timeframe.
Notable Legal References (in plain terms)
- Minnesota sales and use tax context (Minnesota Statutes chapter 297A).
- Refund process aligned with existing refund procedures for similar projects (as described in the bill).
- General fund appropriation to support the refunds, via the commissioner of revenue.
Relevant Terms - Maple Grove Community Center - construction materials - materials and supplies - equipment - construction, reconstruction, upgrade, expansion, renovation, remodeling - sales and use tax - exemption - refundable exemption - Minnesota Statutes chapter 297A - 297A.62 - 297A.75 - general fund - commissioner of revenue - appropriation - purchase window (March 31, 2024 to June 1, 2029)
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 16, 2025 | Senate | Action | Introduction and first reading | ||
| January 16, 2025 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Minnesota Statutes chapter 297A to frame the Maple Grove sales and use tax exemption for construction materials associated with the Maple Grove Community Center project.",
"modified": []
},
"citation": "297A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes § 297A.62, subd. 1 and subd. 1a, to apply the applicable tax rate and then refund the exemption as part of the Maple Grove project.",
"modified": []
},
"citation": "297A.62",
"subdivision": "subd. 1, subd. 1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes § 297A.75, subd. 1, clause 17, governing the refund mechanism for the exemption.",
"modified": []
},
"citation": "297A.75",
"subdivision": "subd. 1, cl. 17"
}
]Progress through the legislative process
In Committee