Bill > HF442

This bill creates a temporary sales tax exemption and refund program specifically for large housing development projects in St. Louis County, Minnesota. The exemption applies to construction materials, supplies, and equipment used in apartment, condominium, or townhome developments that meet certain size requirements: apartments must have at least 20 units, while condominiums and townhomes must have at least 40 units. The tax exemption is only valid for 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 taxes paid, effectively making the construction materials tax-free. The bill includes an appropriation from the general fund to reimburse the commissioner of revenue for the refunded taxes. This targeted exemption appears designed to incentivize larger housing development projects in St. Louis County by reducing the financial burden of construction materials during a specific two-year period.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0442&ssn=0&y=2025