SF 542

Introduction - 94th Legislature (2025 - 2026)

Posted on 01/29/2025 09:54 a.m.

A bill for an act
relating to taxation; sales and use; providing a refundable exemption for
construction materials used in certain housing development projects in St. Louis
County.

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

Section 1. new text begin HOUSING DEVELOPMENT PROJECTS IN ST. LOUIS COUNTY;
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 of the following projects in St. Louis County are exempt from sales and use
tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and
equipment are purchased after June 30, 2025, and before July 1, 2027:
new text end

new text begin (1) an apartment development that includes at least 20 units;
new text end

new text begin (2) a condominium development that includes at least 40 units; or
new text end

new text begin (3) a townhome development that includes at least 40 units.
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).
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 for sales and purchases made after June
30, 2025, and before July 1, 2027.
new text end