SF 4568

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:09 a.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 Ely.

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

Section 1. new text begin CITY OF ELY; HOUSING DEVELOPMENT PROJECT SALES AND
USE TAX EXEMPTION.
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 Ely Housing Redevelopment Authority workforce housing project,
Wilderness Escape, in the city of Ely are exempt from sales and use tax under Minnesota
Statutes, chapter 297A, provided that the materials, supplies, and equipment are purchased
after April 30, 2026, and before January 1, 2028.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied. A refund equal to the tax paid on the gross receipts of
items exempt under this section must be paid to the applicant. The applicant must be the
owner of the development project described in paragraph (a). The application must include
sufficient information to permit the commissioner of revenue to verify the tax paid. If the
tax was paid by a contractor, subcontractor, or builder, the contractor, subcontractor, or
builder must furnish to the refund applicant a statement including the cost of the exempt
items and the taxes paid on the items. The provisions of Minnesota Statutes, sections 289A.40
and 289A.50, apply to refunds under this section. Refunds for eligible purchases must not
be issued until after June 30, 2026.
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 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 April 30, 2026, and before January 1, 2028.
new text end