This bill proposes a sales tax exemption for construction materials used in the construction of a new water treatment facility in the city of Monticello. Specifically, it establishes that materials, supplies, and equipment utilized in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the facility, along with related water utility infrastructure, will be exempt from sales and use tax under Minnesota Statutes, chapter 297A. This exemption applies to purchases made between August 31, 2025, and January 1, 2030.

Additionally, the bill outlines that while the tax will initially be imposed and collected, it will be refunded in accordance with existing provisions for similar projects, with the stipulation that the applicant for the refund must be the governmental entity overseeing the project. Furthermore, it includes an appropriation from the general fund to the commissioner of revenue to cover the refunds associated with this exemption. The effective date for this legislation is set for sales and purchases made after August 31, 2025, and before January 1, 2030.