Bill > SF2727

This bill establishes a specific sales and use tax exemption for materials and supplies used in private redevelopment projects in certain designated parcels within St. Cloud, located in Stearns and Benton Counties. The exemption applies to specific tax identification numbers covering various catalyst sites and development areas, and is valid for sales and purchases made between July 1, 2025, and December 31, 2040. Taxpayers who pay sales tax on qualifying materials used in these projects can apply for a full refund from the state, with the owner of the development being the primary refund applicant. Contractors and subcontractors must provide detailed statements about the exempt items and taxes paid to facilitate the refund process. The bill caps the total refunds at $13 million, which will be appropriated from the general fund to the commissioner of revenue, with refunds processed in the order applications are received. The purpose of this targeted tax exemption appears to be to incentivize and support redevelopment efforts in specific areas of St. Cloud by reducing the tax burden on construction materials and encouraging new private development.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2727&ssn=0&y=2025