This bill proposes a sales and use tax exemption for construction materials and supplies used in the construction and improvement of a water treatment facility and its associated infrastructure in the city of Woodbury. Specifically, it establishes that materials and equipment purchased for these projects after January 31, 2024, and before January 1, 2029, will be exempt from sales and use tax under Minnesota Statutes, chapter 297A. The tax will be collected initially but refunded in accordance with existing provisions for similar projects, with refunds for eligible purchases not available until after June 30, 2024.

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 for sales and purchases made within the specified timeframe. This legislation aims to support the development of essential water treatment infrastructure in Woodbury by alleviating the financial burden of sales tax on construction materials.