Bill > SF542

This bill provides a temporary sales tax exemption and refund for construction materials used in specific housing development projects in St. Louis County, Minnesota. Specifically, the bill creates a tax exemption for materials, supplies, and equipment used in constructing apartment developments with at least 20 units, condominium developments with at least 40 units, or townhome developments with at least 40 units. The exemption applies to purchases made between July 1, 2025, and June 30, 2027. Although the materials will initially be subject to sales tax, developers can receive a full refund of the sales tax paid, similar to other tax refund mechanisms in Minnesota law. The bill includes an appropriation from the general fund to the Minnesota Commissioner of Revenue to cover the cost of these tax refunds. This targeted tax exemption appears designed to incentivize housing development in St. Louis County by reducing the upfront costs of construction materials for larger residential projects.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0542&ssn=0&y=2025