Bill > HF2132

This bill provides a specific sales and use tax exemption for the construction of a new water treatment facility in the city of Monticello, Minnesota. The exemption covers materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the water treatment facility and its associated infrastructure, purchased between August 31, 2025, and January 1, 2030. While these materials would normally be subject to sales tax, under this bill, the tax will be collected initially but then fully refunded to the governmental entity owning or contracting for the project. This means the city of Monticello will effectively pay no sales tax on qualifying construction materials for this water treatment facility. The bill includes an appropriation from the general fund to the commissioner of revenue to cover the cost of these tax refunds. The tax exemption is time-limited, applying only to purchases made within the specified four-year period, which suggests the bill is designed to support a specific infrastructure improvement project for the city.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2132&ssn=0&y=2025