This bill proposes a sales and use tax exemption for construction materials and supplies used in specific projects within the Lake Superior School District (Independent School District No. 381). The exemption applies to purchases made between January 1, 2023, and December 31, 2025, for projects including improvements to Minnehaha Elementary School, William Kelly School, Two Harbors High School, the Two Harbors and Silver Bay Bus Garages, and athletic facilities. The tax will be collected as if the standard rate applied, but eligible purchases will be refunded in accordance with existing statutes, with refunds not issued until after January 1, 2026.

Additionally, the bill includes an appropriation from the general fund to the commissioner of revenue to cover the refunds for these tax-exempt purchases. The effective date of this legislation is retroactive to cover sales and purchases made after December 31, 2022, and before January 1, 2026.