This bill amends Minnesota Statutes to modify the exemption provisions for construction materials purchased by certain contractors. It introduces a new subdivision under section 297A.71 that exempts building, construction, or reconstruction materials used by contractors for entities such as school districts, local governments, hospitals, nursing homes, and nonprofit groups. Additionally, it provides an exemption for materials used in public infrastructure projects, including roads and bridges, when purchased by contractors for specified entities. The tax on these exempt purchases will be collected as if it were taxable, but a refund will be provided in accordance with section 297A.75.

Furthermore, the bill updates section 297A.75 to include a new clause that allows entities eligible under the newly added subdivision 55 to apply for a refund of the tax paid on exempt construction materials. The effective date for these changes is set for sales and purchases made after June 30, 2025. The bill aims to support various public and nonprofit entities by reducing their tax burden on construction-related expenses, thereby facilitating infrastructure development and improvements.

Statutes affected:
Introduction: 297A.71, 297A.75