Bill > SF2171

This bill establishes a new sales tax exemption and refund program for first-time homebuyers constructing new single-family residential housing in Minnesota. Specifically, the legislation provides a tax exemption for construction materials, supplies, and equipment used in building a new single-family home, with the exemption limited to the first $460,000 of construction costs. First-time homebuyers must own and occupy the home to qualify. The bill requires that sales tax be initially collected as if the items were taxable, but then allows the homeowner to apply for a full refund of the taxes paid. This exemption is set to expire on July 1, 2033, and will become effective for sales and purchases made after June 30, 2025. The purpose of the bill appears to be to help reduce the upfront costs of new home construction for first-time homebuyers by providing a mechanism to recover sales taxes paid on construction materials, potentially making homeownership more accessible in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2171&ssn=0&y=2025