Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2178 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; providing a refundable construction exemption
3	3	1.3 for construction of new multifamily residential housing for first-time homebuyers;
4	4	1.4 amending Minnesota Statutes 2024, sections 297A.71, by adding a subdivision;
5	5	1.5 297A.75, subdivisions 1, 2.
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 for new multifamily home construction.(a)
10	10	1.10Materials and supplies used or consumed in and equipment incorporated into the construction
11	11	1.11of new multifamily residential housing for first-time homebuyers are exempt. For the
12	12	1.12purposes of this subdivision, multifamily residential housing includes only duplexes and
13	13	1.13triplexes. To qualify, the first-time homebuyer must own and occupy at least one unit of
14	14	1.14the housing. This exemption is limited to the taxes paid on the first $460,000 of the cost of
15	15	1.15construction.
16	16	1.16 (b) The tax on purchases exempt under paragraph (a) must be imposed and collected as
17	17	1.17if the rate under section 297A.62, subdivisions 1 and 1a, applied and then refunded in the
18	18	1.18manner provided in section 297A.75.
19	19	1.19 (c) This subdivision expires July 1, 2033.
20	20	1.20 EFFECTIVE DATE.This section is effective for sales and purchases made after June
21	21	1.2130, 2025.
22	22	1Section 1.
23	23	25-02453 as introduced02/03/25 REVISOR EAP/AC
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 2178NINETY-FOURTH SESSION
27	27	(SENATE AUTHORS: HOUSLEY, Lucero, Draheim and Coleman)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading03/06/2025
30	30	Referred to Taxes 2.1 Sec. 2. Minnesota Statutes 2024, section 297A.75, subdivision 1, is amended to read:
31	31	2.2 Subdivision 1.Tax collected.The tax on the gross receipts from the sale of the following
32	32	2.3exempt items must be imposed and collected as if the sale were taxable and the rate under
33	33	2.4section 297A.62, subdivision 1, applied. The exempt items include:
34	34	2.5 (1) building materials for an agricultural processing facility exempt under section
35	35	2.6297A.71, subdivision 13;
36	36	2.7 (2) building materials for mineral production facilities exempt under section 297A.71,
37	37	2.8subdivision 14;
38	38	2.9 (3) building materials for correctional facilities under section 297A.71, subdivision 3;
39	39	2.10 (4) building materials used in a residence for veterans with a disability exempt under
40	40	2.11section 297A.71, subdivision 11;
41	41	2.12 (5) elevators and building materials exempt under section 297A.71, subdivision 12;
42	42	2.13 (6) materials and supplies for qualified low-income housing under section 297A.71,
43	43	2.14subdivision 23;
44	44	2.15 (7) materials, supplies, and equipment for municipal electric utility facilities under
45	45	2.16section 297A.71, subdivision 35;
46	46	2.17 (8) equipment and materials used for the generation, transmission, and distribution of
47	47	2.18electrical energy and an aerial camera package exempt under section 297A.68, subdivision
48	48	2.1937;
49	49	2.20 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
50	50	2.21(a), clause (10);
51	51	2.22 (10) materials, supplies, and equipment for construction or improvement of projects and
52	52	2.23facilities under section 297A.71, subdivision 40;
53	53	2.24 (11) enterprise information technology equipment and computer software for use in a
54	54	2.25qualified data center exempt under section 297A.68, subdivision 42;
55	55	2.26 (12) materials, supplies, and equipment for qualifying capital projects under section
56	56	2.27297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
57	57	2.28 (13) items purchased for use in providing critical access dental services exempt under
58	58	2.29section 297A.70, subdivision 7, paragraph (c);
59	59	2Sec. 2.
60	60	25-02453 as introduced02/03/25 REVISOR EAP/AC 3.1 (14) items and services purchased under a business subsidy agreement for use or
61	61	3.2consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
62	62	3.344;
63	63	3.4 (15) building materials, equipment, and supplies for constructing or replacing real
64	64	3.5property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
65	65	3.6 (16) building materials, equipment, and supplies for qualifying capital projects under
66	66	3.7section 297A.71, subdivision 52; and
67	67	3.8 (17) building materials, equipment, and supplies for constructing, remodeling, expanding,
68	68	3.9or improving a fire station, police station, or related facilities exempt under section 297A.71,
69	69	3.10subdivision 53.; and
70	70	3.11 (18) building materials, equipment, and supplies for the construction of new multifamily
71	71	3.12residential housing exempt under section 297A.71, subdivision 55.
72	72	3.13 EFFECTIVE DATE.This section is effective for sales and purchases made after June
73	73	3.1430, 2025.
74	74	3.15 Sec. 3. Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:
75	75	3.16 Subd. 2.Refund; eligible persons.Upon application on forms prescribed by the
76	76	3.17commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
77	77	3.18be paid to the applicant. Only the following persons may apply for the refund:
78	78	3.19 (1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;
79	79	3.20 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
80	80	3.21 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
81	81	3.22provided in United States Code, title 38, chapter 21;
82	82	3.23 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
83	83	3.24property;
84	84	3.25 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
85	85	3.26 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
86	86	3.27joint venture of municipal electric utilities;
87	87	3.28 (7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;
88	88	3.29 (8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the
89	89	3.30governmental entity that owns or contracts for the project or facility; and
90	90	3Sec. 3.
91	91	25-02453 as introduced02/03/25 REVISOR EAP/AC 4.1 (9) for subdivision 1, clause (15), the applicant must be the owner or developer of the
92	92	4.2building or project.; and
93	93	4.3 (10) for subdivision 1, clause (18), the applicant must be the owner of the residential
94	94	4.4housing.
95	95	4.5 EFFECTIVE DATE.This section is effective for sales and purchases made after June
96	96	4.630, 2025.
97	97	4Sec. 3.
98	98	25-02453 as introduced02/03/25 REVISOR EAP/AC