| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; sales and use; providing a refundable exemption for |
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| 3 | 3 | | 1.3 construction materials used for residential housing; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, sections 297A.71, by adding a subdivision; 297A.75, subdivisions 1, 2. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 297A.71, is amended by adding a subdivision |
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| 7 | 7 | | 1.7to read: |
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| 8 | 8 | | 1.8 Subd. 55.Construction materials for residential housing.(a) Materials and supplies |
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| 9 | 9 | | 1.9used or consumed in and equipment incorporated into the construction of new residential |
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| 10 | 10 | | 1.10housing are exempt. |
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| 11 | 11 | | 1.11 (b) The tax on purchases exempt under paragraph (a) must be imposed and collected as |
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| 12 | 12 | | 1.12if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner |
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| 13 | 13 | | 1.13provided in section 297A.75. |
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| 14 | 14 | | 1.14 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 15 | 15 | | 1.1530, 2025. |
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| 16 | 16 | | 1.16 Sec. 2. Minnesota Statutes 2024, section 297A.75, subdivision 1, is amended to read: |
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| 17 | 17 | | 1.17 Subdivision 1.Tax collected.The tax on the gross receipts from the sale of the following |
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| 18 | 18 | | 1.18exempt items must be imposed and collected as if the sale were taxable and the rate under |
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| 19 | 19 | | 1.19section 297A.62, subdivision 1, applied. The exempt items include: |
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| 20 | 20 | | 1.20 (1) building materials for an agricultural processing facility exempt under section |
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| 21 | 21 | | 1.21297A.71, subdivision 13; |
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| 22 | 22 | | 1Sec. 2. |
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| 23 | 23 | | 25-01233 as introduced12/18/24 REVISOR EAP/DG |
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| 24 | 24 | | SENATE |
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| 25 | 25 | | STATE OF MINNESOTA |
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| 26 | 26 | | S.F. No. 536NINETY-FOURTH SESSION |
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| 27 | 27 | | (SENATE AUTHORS: LUCERO, Draheim, Bahr and Lieske) |
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| 28 | 28 | | OFFICIAL STATUSD-PGDATE |
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| 29 | 29 | | Introduction and first reading01/23/2025 |
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| 30 | 30 | | Referred to Taxes 2.1 (2) building materials for mineral production facilities exempt under section 297A.71, |
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| 31 | 31 | | 2.2subdivision 14; |
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| 32 | 32 | | 2.3 (3) building materials for correctional facilities under section 297A.71, subdivision 3; |
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| 33 | 33 | | 2.4 (4) building materials used in a residence for veterans with a disability exempt under |
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| 34 | 34 | | 2.5section 297A.71, subdivision 11; |
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| 35 | 35 | | 2.6 (5) elevators and building materials exempt under section 297A.71, subdivision 12; |
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| 36 | 36 | | 2.7 (6) materials and supplies for qualified low-income housing under section 297A.71, |
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| 37 | 37 | | 2.8subdivision 23; |
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| 38 | 38 | | 2.9 (7) materials, supplies, and equipment for municipal electric utility facilities under |
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| 39 | 39 | | 2.10section 297A.71, subdivision 35; |
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| 40 | 40 | | 2.11 (8) equipment and materials used for the generation, transmission, and distribution of |
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| 41 | 41 | | 2.12electrical energy and an aerial camera package exempt under section 297A.68, subdivision |
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| 42 | 42 | | 2.1337; |
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| 43 | 43 | | 2.14 (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph |
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| 44 | 44 | | 2.15(a), clause (10); |
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| 45 | 45 | | 2.16 (10) materials, supplies, and equipment for construction or improvement of projects and |
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| 46 | 46 | | 2.17facilities under section 297A.71, subdivision 40; |
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| 47 | 47 | | 2.18 (11) enterprise information technology equipment and computer software for use in a |
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| 48 | 48 | | 2.19qualified data center exempt under section 297A.68, subdivision 42; |
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| 49 | 49 | | 2.20 (12) materials, supplies, and equipment for qualifying capital projects under section |
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| 50 | 50 | | 2.21297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b); |
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| 51 | 51 | | 2.22 (13) items purchased for use in providing critical access dental services exempt under |
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| 52 | 52 | | 2.23section 297A.70, subdivision 7, paragraph (c); |
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| 53 | 53 | | 2.24 (14) items and services purchased under a business subsidy agreement for use or |
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| 54 | 54 | | 2.25consumption primarily in greater Minnesota exempt under section 297A.68, subdivision |
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| 55 | 55 | | 2.2644; |
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| 56 | 56 | | 2.27 (15) building materials, equipment, and supplies for constructing or replacing real |
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| 57 | 57 | | 2.28property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51; |
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| 58 | 58 | | 2.29 (16) building materials, equipment, and supplies for qualifying capital projects under |
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| 59 | 59 | | 2.30section 297A.71, subdivision 52; and |
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| 60 | 60 | | 2Sec. 2. |
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| 61 | 61 | | 25-01233 as introduced12/18/24 REVISOR EAP/DG 3.1 (17) building materials, equipment, and supplies for constructing, remodeling, expanding, |
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| 62 | 62 | | 3.2or improving a fire station, police station, or related facilities exempt under section 297A.71, |
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| 63 | 63 | | 3.3subdivision 53.; and |
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| 64 | 64 | | 3.4 (18) building materials, equipment, and supplies for the construction of new residential |
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| 65 | 65 | | 3.5housing exempt under section 297A.71, subdivision 55. |
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| 66 | 66 | | 3.6 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 67 | 67 | | 3.730, 2025. |
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| 68 | 68 | | 3.8 Sec. 3. Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read: |
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| 69 | 69 | | 3.9 Subd. 2.Refund; eligible persons.Upon application on forms prescribed by the |
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| 70 | 70 | | 3.10commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must |
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| 71 | 71 | | 3.11be paid to the applicant. Only the following persons may apply for the refund: |
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| 72 | 72 | | 3.12 (1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser; |
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| 73 | 73 | | 3.13 (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; |
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| 74 | 74 | | 3.14 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits |
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| 75 | 75 | | 3.15provided in United States Code, title 38, chapter 21; |
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| 76 | 76 | | 3.16 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead |
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| 77 | 77 | | 3.17property; |
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| 78 | 78 | | 3.18 (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project; |
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| 79 | 79 | | 3.19 (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a |
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| 80 | 80 | | 3.20joint venture of municipal electric utilities; |
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| 81 | 81 | | 3.21 (7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business; |
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| 82 | 82 | | 3.22 (8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the |
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| 83 | 83 | | 3.23governmental entity that owns or contracts for the project or facility; and |
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| 84 | 84 | | 3.24 (9) for subdivision 1, clause clauses (15) and (18), the applicant must be the owner or |
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| 85 | 85 | | 3.25developer of the building or project. |
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| 86 | 86 | | 3.26 EFFECTIVE DATE.This section is effective for sales and purchases made after June |
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| 87 | 87 | | 3.2730, 2025. |
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| 88 | 88 | | 3Sec. 3. |
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| 89 | 89 | | 25-01233 as introduced12/18/24 REVISOR EAP/DG |
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