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SF70 (Legislative Session 94 (2025-2026))

Becker Public School District refundable construction exemption provision and appropriation

Related bill: HF520

AI Generated Summary

Purpose

  • Provide a temporary sales and use tax exemption, in the form of a refundable credit, for Becker Public School District construction projects.

Main provisions

  • Exemption for construction materials, supplies, and equipment used in and incorporated into specific Becker Public School District construction and renovation projects.
  • The exemption applies to purchases for projects at the following Becker facilities: Early Childhood, Primary, Intermediate, Middle, and High Schools; Transportation Building; and the Becker Multi-Purpose Athletic Facility in Independent School District No. 726.

Eligible projects and facilities

  • Projects covered include construction and renovation work at:
    • Becker Early Childhood
    • Becker Primary School
    • Becker Intermediate School
    • Becker Middle School
    • Becker High School
    • Becker Transportation Building
    • Becker Multi-Purpose Athletic Facility

Timing and eligibility window

  • The exemption applies only to materials, supplies, and equipment purchased after December 31, 2021 and before January 1, 2025.

Tax treatment and refund mechanics

  • The state tax is assessed and collected as if the standard rate (under Minnesota law) applied.
  • The collected tax is then refunded to the project in the same manner as the refund process described for other projects under the state’s refund provisions.
  • Refunds for eligible purchases are not issued until after June 30, 2025.

Funding and appropriation

  • The amount needed to pay these refunds is appropriated from the General Fund to the Commissioner of Revenue.

Significant changes to existing law

  • Creates a temporary, refundable sales and use tax exemption specifically for Becker Public School District construction materials and equipment.
  • Requires applying the refund through the same procedures used for existing projects, with a defined post-2025 refund timeline.
  • Establishes a General Fund appropriation to finance the refunds.

Relevant terms

Becker Public School District; sales tax; use tax; construction materials; exemption; refunds; refundable exemption; Becker facilities (Early Childhood, Primary, Intermediate, Middle, High School, Transportation Building, Multi-Purpose Athletic Facility); Independent School District No. 726; Minnesota Statutes chapter 297A; 297A.62; 297A.75; after December 31, 2021; before January 1, 2025; refunds after June 30, 2025; Commissioner of Revenue; General Fund.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Establishes a Becker Public School District construction materials exemption under Minn. Stat. ch. 297A.",
        "Specifies the Becker School District facilities eligible for the exemption and the applicable time window for purchases."
      ],
      "removed": [],
      "summary": "This bill creates a sales and use tax exemption for construction materials, supplies, and equipment used in Becker Public School District construction and renovation projects, including Becker Early Childhood, Becker Primary, Becker Intermediate, Becker Middle, Becker High School, Becker Transportation Building, and the Becker Multi-Purpose Athletic Facility. The exemption applies to purchases after December 31, 2021 and before January 1, 2025, under Minn. Stat. ch. 297A.",
      "modified": []
    },
    "citation": "297A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Replicates the normal 297A.62 rate application for the exemption and follows the refund process described in 297A.75, subd. 1, clause 17."
      ],
      "removed": [],
      "summary": "The tax for the exemption is to be imposed and collected as if the rate under Minn. Stat. § 297A.62, subd. 1 and 1a, applied, and then refunded in the same manner provided for projects under Minn. Stat. § 297A.75, subd. 1, clause 17.",
      "modified": []
    },
    "citation": "297A.62",
    "subdivision": "subd. 1 and 1a"
  },
  {
    "analysis": {
      "added": [
        "Adds a timing restriction delaying refunds for the Becker district exemption until after June 30, 2025."
      ],
      "removed": [],
      "summary": "Refunds for eligible purchases must not be issued until after June 30, 2025.",
      "modified": []
    },
    "citation": "297A.75",
    "subdivision": "subd. 1, clause 17"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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