Bill > HF618

This bill modifies sales tax exemption and refund provisions for construction materials purchased by contractors for specific types of entities and projects. The bill expands tax exemptions to cover construction materials used in buildings or facilities for school districts, local governments, government-owned hospitals and nursing homes, public libraries, certain nonprofit groups, hospitals, outpatient surgical centers, dental providers, and nursing homes. It also extends exemptions for public infrastructure materials used by school districts and local governments. While these materials are initially taxed at the standard rate, contractors can subsequently receive a full refund of the sales tax through an application process. Contractors must provide detailed documentation about the cost of exempt items and taxes paid to the entity seeking the refund. The law limits refund applications to two per calendar year for certain types of capital equipment and requires the tax commissioner to verify the tax paid. These changes will take effect for sales and purchases made after June 30, 2025, providing clarity and financial relief for public and nonprofit entities undertaking construction or infrastructure projects.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0618&ssn=0&y=2025