Bill > SF2178

This bill establishes a new tax exemption for construction materials used in building duplexes and triplexes specifically targeted at first-time homebuyers. The exemption allows developers and homeowners to receive a refund for sales taxes paid on construction materials, with the exemption limited to the first $460,000 of construction costs. To qualify, the first-time homebuyer must own and occupy at least one unit of the multifamily housing. The bill requires that sales taxes be initially collected as if the purchase were taxable, and then refunded through a process outlined in Minnesota tax statutes. The tax exemption is temporary and will expire on July 1, 2033, and becomes effective for sales and purchases made after June 30, 2025. This provision aims to incentivize the construction of affordable multifamily housing by reducing the overall cost of development for properties intended to help first-time homebuyers enter the housing market.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2178&ssn=0&y=2025