This bill proposes a sales and use tax exemption for construction materials used in specific projects at Duluth International Airport and Sky Harbor Airport. The exemption applies to materials and supplies purchased for the construction, reconstruction, upgrade, expansion, renovation, or remodeling of a new air traffic control tower, two general aviation hangars at Duluth International Airport, and a new terminal at Sky Harbor Airport. The eligible purchases must be made between June 1, 2023, and January 1, 2028. Although the tax will be imposed initially, it will be refunded in accordance with existing statutes, with refunds not issued until after January 1, 2028, and applications for refunds accepted until June 30, 2028.

Additionally, the bill includes an appropriation from the general fund to the commissioner of revenue to cover the refunds. The effective date of this section is retroactive for sales and purchases made after December 31, 2022, and before January 1, 2028. This legislation aims to support the development and improvement of airport infrastructure in Duluth, thereby enhancing regional transportation capabilities.