HF 3028

as introduced - 94th Legislature (2025 - 2026) Posted on 04/01/2025 11:25am

A bill for an act
relating to taxation; sales and use; providing a refundable exemption for materials
used in construction projects in redevelopment districts in the city of St. Cloud.

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

Section 1. new text begin ST. CLOUD; REDEVELOPMENT DISTRICTS 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 in and equipment
incorporated into private redevelopment projects on parcels listed in paragraph (b) are
exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided the resulting
development is subject to property taxes.
new text end

new text begin (b) The exemption in this section applies to the following parcels, and the adjacent
parcels, roads, and right-of-ways thereto, with the tax identification numbers:
new text end

new text begin (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); 82528850001 (Former
Herberger's); 82528850065 (Former Herberger's); 82528850005 (Former Herberger's);
82528850053; 82528850050; 82528850048 (Former Press Bar/Cowboy Jack's Lots); and
new text end

new text begin (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; 170058900;
1700113900 (Transit Oriented Development Catalyst Site); 170060600; 170060700; and
170060800 (EDA Parking Lot and adjacent sites).
new text end

new text begin (c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivisions 1 and 1a, 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 described in paragraph (b), clauses (1) and (2). 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.
new text end

new text begin (d) The exemption under this section applies for sales and purchases made after July 1,
2025, and before December 31, 2040.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; limit on refunds. 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.
The commissioner of revenue must not pay more than $13,000,000 in refunds for purchases
exempt under this section. Refunds must be processed and issued in the order that complete
and accurate applications are received by the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end