This bill amends existing tax law in Minnesota to modify the sales and use tax exemption for certain construction materials used in the city of Ramsey. Specifically, it expands the exemption to include materials and supplies used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a new water treatment plant and trunk water main improvements. The exemption applies to purchases made after December 31, 2022, and before July 1, 2027. The bill also stipulates that the tax must be collected at the standard rate and then refunded in accordance with existing provisions for similar projects.

Additionally, the bill includes a retroactive effective date for the exemption, applying it to sales and purchases made after December 31, 2022. This change aims to support infrastructure development in Ramsey by alleviating some of the tax burdens associated with construction projects in the area.