This bill amends Minnesota Statutes to introduce a refundable construction exemption for materials and supplies used in the construction of new multifamily residential housing specifically for first-time homebuyers. The new subdivision added to section 297A.71 outlines that materials and equipment used in constructing duplexes and triplexes will be exempt from sales tax, provided that the first-time homebuyer occupies at least one unit. The exemption is capped at taxes paid on the first $460,000 of construction costs and will expire on July 1, 2033. Additionally, the bill specifies that the tax must be collected as if it were taxable and then refunded according to section 297A.75.

The bill also updates section 297A.75 to include the new exemption for multifamily residential housing in the list of items for which tax is collected and subsequently refunded. It specifies that the owner of the residential housing is eligible to apply for the refund. The effective date for these changes is set for sales and purchases made after June 30, 2025. This legislation aims to support first-time homebuyers by reducing the financial burden associated with the construction of new multifamily homes.

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