Minnesota 2025-2026 Regular Session

Minnesota House Bill HF618 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; sales and use; modifying exemption provisions for construction
3	3	1.3 materials by certain contractors; adding a refund provision; amending Minnesota
4	4	1.4 Statutes 2024, sections 297A.71, by adding a subdivision; 297A.75, subdivisions
5	5	1.5 1, 2, 3.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 297A.71, is amended by adding a subdivision
8	8	1.8to read:
9	9	1.9 Subd. 55.Construction materials purchased by contractors; exemption for certain
10	10	1.10entities.(a) Building, construction, or reconstruction materials, supplies, and equipment
11	11	1.11purchased by a contractor, subcontractor, or builder and used or consumed in or incorporated
12	12	1.12into buildings or facilities used principally by the following entities are exempt:
13	13	1.13 (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c);
14	14	1.14 (2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d);
15	15	1.15 (3) hospitals and nursing homes owned and operated by political subdivisions of the
16	16	1.16state, as listed in section 297A.70, subdivision 2, paragraph (a), clause (3);
17	17	1.17 (4) county law libraries under chapter 134A and public libraries, regional public library
18	18	1.18systems, and multicounty, multitype library systems as defined in section 134.001;
19	19	1.19 (5) nonprofit groups, as defined under section 297A.70, subdivision 4;
20	20	1.20 (6) hospitals, outpatient surgical centers, and critical access dental providers, as defined
21	21	1.21under section 297A.70, subdivision 7; and
22	22	1Section 1.
23	23	REVISOR EAP/ES 25-0329502/06/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 618
29	29	NINETY-FOURTH SESSION
30	30	Authored by Swedzinski02/13/2025
31	31	The bill was read for the first time and referred to the Committee on Taxes 2.1 (7) nursing homes and boarding care homes, as defined under section 297A.70,
32	32	2.2subdivision 18.
33	33	2.3 (b) Materials, supplies, and equipment used in the construction, reconstruction, repair,
34	34	2.4maintenance, or improvement of public infrastructure of any kind including but not limited
35	35	2.5to roads, bridges, culverts, drinking water facilities, and wastewater facilities purchased by
36	36	2.6a contractor or subcontractor of the following entities are exempt:
37	37	2.7 (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); or
38	38	2.8 (2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d).
39	39	2.9 (c) The tax on purchases exempt under this subdivision must be imposed and collected
40	40	2.10as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
41	41	2.11provided in section 297A.75.
42	42	2.12 EFFECTIVE DATE.This section is effective for sales and purchases made after June
43	43	2.1330, 2025.
44	44	2.14 Sec. 2. Minnesota Statutes 2024, section 297A.75, subdivision 1, is amended to read:
45	45	2.15 Subdivision 1.Tax collected.The tax on the gross receipts from the sale of the following
46	46	2.16exempt items must be imposed and collected as if the sale were taxable and the rate under
47	47	2.17section 297A.62, subdivision 1, applied. The exempt items include:
48	48	2.18 (1) building materials for an agricultural processing facility exempt under section
49	49	2.19297A.71, subdivision 13;
50	50	2.20 (2) building materials for mineral production facilities exempt under section 297A.71,
51	51	2.21subdivision 14;
52	52	2.22 (3) building materials for correctional facilities under section 297A.71, subdivision 3;
53	53	2.23 (4) building materials used in a residence for veterans with a disability exempt under
54	54	2.24section 297A.71, subdivision 11;
55	55	2.25 (5) elevators and building materials exempt under section 297A.71, subdivision 12;
56	56	2.26 (6) materials and supplies for qualified low-income housing under section 297A.71,
57	57	2.27subdivision 23;
58	58	2.28 (7) materials, supplies, and equipment for municipal electric utility facilities under
59	59	2.29section 297A.71, subdivision 35;
60	60	2Sec. 2.
61	61	REVISOR EAP/ES 25-0329502/06/25 3.1 (8) equipment and materials used for the generation, transmission, and distribution of
62	62	3.2electrical energy and an aerial camera package exempt under section 297A.68, subdivision
63	63	3.337;
64	64	3.4 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
65	65	3.5(a), clause (10);
66	66	3.6 (10) materials, supplies, and equipment for construction or improvement of projects and
67	67	3.7facilities under section 297A.71, subdivision 40;
68	68	3.8 (11) enterprise information technology equipment and computer software for use in a
69	69	3.9qualified data center exempt under section 297A.68, subdivision 42;
70	70	3.10 (12) materials, supplies, and equipment for qualifying capital projects under section
71	71	3.11297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
72	72	3.12 (13) items purchased for use in providing critical access dental services exempt under
73	73	3.13section 297A.70, subdivision 7, paragraph (c);
74	74	3.14 (14) items and services purchased under a business subsidy agreement for use or
75	75	3.15consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
76	76	3.1644;
77	77	3.17 (15) building materials, equipment, and supplies for constructing or replacing real
78	78	3.18property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
79	79	3.19 (16) building materials, equipment, and supplies for qualifying capital projects under
80	80	3.20section 297A.71, subdivision 52; and
81	81	3.21 (17) building materials, equipment, and supplies for constructing, remodeling, expanding,
82	82	3.22or improving a fire station, police station, or related facilities exempt under section 297A.71,
83	83	3.23subdivision 53.; and
84	84	3.24 (18) building construction or reconstruction materials, supplies, and equipment purchased
85	85	3.25by an entity eligible under section 297A.71, subdivision 55.
86	86	3.26 EFFECTIVE DATE.This section is effective for sales and purchases made after June
87	87	3.2730, 2025.
88	88	3.28 Sec. 3. Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:
89	89	3.29 Subd. 2.Refund; eligible persons.Upon application on forms prescribed by the
90	90	3.30commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
91	91	3.31be paid to the applicant. Only the following persons may apply for the refund:
92	92	3Sec. 3.
93	93	REVISOR EAP/ES 25-0329502/06/25 4.1 (1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;
94	94	4.2 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
95	95	4.3 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
96	96	4.4provided in United States Code, title 38, chapter 21;
97	97	4.5 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
98	98	4.6property;
99	99	4.7 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
100	100	4.8 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
101	101	4.9joint venture of municipal electric utilities;
102	102	4.10 (7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;
103	103	4.11 (8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the
104	104	4.12governmental entity that owns or contracts for the project or facility; and
105	105	4.13 (9) for subdivision 1, clause (15), the applicant must be the owner or developer of the
106	106	4.14building or project.; and
107	107	4.15 (10) for subdivision 1, clause (18), the applicant must be the entity eligible under section
108	108	4.16297A.71, subdivision 55.
109	109	4.17 EFFECTIVE DATE.This section is effective for sales and purchases made after June
110	110	4.1830, 2025.
111	111	4.19 Sec. 4. Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:
112	112	4.20 Subd. 3.Application.(a) The application must include sufficient information to permit
113	113	4.21the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
114	114	4.22or builder, under subdivision 1, clauses (3) to (12) or (14) to (17) (18), the contractor,
115	115	4.23subcontractor, or builder must furnish to the refund applicant a statement including the cost
116	116	4.24of the exempt items and the taxes paid on the items unless otherwise specifically provided
117	117	4.25by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
118	118	4.26this section.
119	119	4.27 (b) An applicant may not file more than two applications per calendar year for refunds
120	120	4.28for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
121	121	4.29 EFFECTIVE DATE.This section is effective for sales and purchases made after June
122	122	4.3030, 2025.
123	123	4Sec. 4.
124	124	REVISOR EAP/ES 25-0329502/06/25