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