1.1 A bill for an act
1.2 relating to taxation; sales and use; providing a refundable exemption for
1.3 construction materials for certain projects in the city of Watertown.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. CITY OF WATERTOWN; SALES TAX EXEMPTION FOR
1.6CONSTRUCTION MATERIALS.
1.7 Subdivision 1.Exemption; refund.(a) Materials and supplies used or consumed in and
1.8equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
1.9or remodeling relating to the following projects in the city of Watertown are exempt from
1.10sales and use tax under Minnesota Statutes, chapter 297A:
1.11 (1) construction of a new water tower provided that the materials, supplies, and equipment
1.12are purchased after April 30, 2024, and before February 1, 2026; and
1.13 (2) construction of a wastewater treatment facility provided that the materials, supplies,
1.14and equipment are purchased after February 28, 2022, and before July 1, 2025.
1.15 (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
1.16297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided
1.17for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds
1.18for eligible purchases must not be issued until after June 30, 2025.
1.19 Subd. 2.Appropriation.The amount required to pay the refunds under subdivision 1
1.20is appropriated from the general fund to the commissioner of revenue.
1.21 EFFECTIVE DATE.This section is effective retroactively for sales and purchases
1.22made after February 28, 2022, and before February 1, 2026.
1Section 1.
REVISOR EAP/MI 25-0338602/06/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 456
NINETY-FOURTH SESSION
Authored by Harder02/13/2025
The bill was read for the first time and referred to the Committee on Taxes