This bill introduces a refundable construction exemption for first-time homebuyers constructing new single-family residential housing in Minnesota. It amends Minnesota Statutes 2024, specifically section 297A.71, by adding a new subdivision that exempts materials and supplies used in the construction of these homes, provided that the first-time homebuyer owns and occupies the property. The exemption is limited to taxes paid on the first $460,000 of construction costs and will expire on July 1, 2033. Additionally, the bill specifies that the tax on these exempt purchases will be collected as if they were taxable, with refunds issued according to section 297A.75.

The bill also amends section 297A.75 to include the new exemption for construction materials for single-family homes in the list of items for which tax must be collected and later refunded. It specifies that the owner of the new single-family residential housing is eligible to apply for the refund. The effective date for these provisions is set for sales and purchases made after June 30, 2025.

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