This bill proposes a sales and use tax exemption for construction materials and supplies used in the construction of a new school within the Red Lake County School District (Independent School District No. 2906). Specifically, materials, supplies, and equipment purchased between January 1, 2021, and December 31, 2025, will be exempt from sales and use tax as imposed under Minnesota Statutes, chapter 297A. The tax will initially be collected but will be refunded in accordance with existing provisions for similar projects, with refunds not being issued until after June 30, 2023.
Additionally, the bill includes an appropriation from the general fund to the commissioner of revenue to cover the costs of these refunds. The effective date of this exemption is retroactive to January 1, 2021, ensuring that it applies to eligible purchases made during the specified timeframe.