This bill modifies the existing sales and use tax exemption for construction materials used in specific projects in the city of Ramsey. It amends the current law to include an exemption for materials and supplies used in the construction of a new water treatment plant and trunk water main improvements. The exemption applies to purchases made after December 31, 2022, and before July 1, 2027. Additionally, the bill clarifies that the tax must be imposed and collected according to the specified subdivisions of Minnesota Statutes, and it establishes that refunds for eligible purchases will not be issued until after June 30, 2023.

Furthermore, the bill introduces a retroactive effective date for the exemption, ensuring that it applies to sales and purchases made after December 31, 2022, and before July 1, 2027. This change aims to support the construction and improvement of essential infrastructure in Ramsey by alleviating the tax burden on necessary materials and supplies.