This bill amends Minnesota Statutes to modify the exemption provisions for construction materials purchased by certain contractors. Specifically, 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, purchased by contractors for school districts and local governments. The tax on these exempt purchases will be collected as if it were taxable, but a refund will be available as outlined in 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. This section also clarifies the application process for refunds, specifying that applicants must provide sufficient information to verify the tax paid. The effective date for these changes is set for sales and purchases made after June 30, 2025.

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