This bill establishes a refundable sales and use tax exemption for construction materials used in specific projects within the city of Woodbury, Minnesota. The exemption applies to materials and supplies utilized in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a water treatment facility and water tower, as well as associated water pipeline infrastructure improvements. To qualify, these materials must be purchased between February 1, 2024, and November 30, 2028. The tax will be collected at the standard rate but will be refunded in accordance with existing provisions for similar projects, with refunds for eligible purchases not available until after June 30, 2025.

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 legislation is retroactive for sales and purchases made after January 31, 2024, and before December 1, 2028.