SF 167

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/10/2025 04:47 p.m.

A bill for an act
relating to taxation; sales and use; providing a refundable exemption for
construction materials for certain projects in the city of Watertown.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF WATERTOWN; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling relating to the following projects in the city of Watertown are exempt from
sales and use tax under Minnesota Statutes, chapter 297A:
new text end

new text begin (1) construction of a new water tower provided that the materials, supplies, and equipment
are purchased after April 30, 2024, and before February 1, 2026; and
new text end

new text begin (2) construction of a wastewater treatment facility provided that the materials, supplies,
and equipment are purchased after February 28, 2022, and before July 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided
for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds
for eligible purchases must not be issued until after June 30, 2025.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after February 28, 2022, and before February 1, 2026.
new text end