1.1 	A bill for an act
1.2 	relating to taxation; sales and use; providing an exemption for construction materials 
1.3 	for certain school buildings; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. RED LAKE COUNTY SCHOOL DISTRICT; SALES TAX EXEMPTION 
1.6 	FOR CONSTRUCTION MATERIALS.
 1.7 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
1.8 	incorporated into the construction of a new school in Independent School District No. 2906, 
1.9 	Red Lake County School District, are exempt from sales and use tax imposed under 
1.10 	Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased after 
1.11 	December 31, 2020, and before January 1, 2026.
1.12 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
1.13 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
1.14 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
1.15 	purchases must not be issued until after June 30, 2023.
1.16 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
1.17 	is appropriated from the general fund to the commissioner of revenue.

1.18 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2021, and 
1.19 	applies to sales and purchases made after December 31, 2020, and before January 1, 2026.