This bill proposes a refundable sales and use tax exemption for materials and supplies used in construction projects located in designated redevelopment districts within the city of St. Cloud. Specifically, it outlines that materials and equipment incorporated into private redevelopment projects on specified parcels will be exempt from sales and use tax, provided that the resulting development is subject to property taxes. The bill lists various tax identification numbers for parcels in both Stearns and Benton counties that qualify for this exemption. Additionally, it stipulates that the exemption applies to sales and purchases made after July 1, 2025, and before December 31, 2040.

Furthermore, the bill establishes an appropriation from the general fund to the commissioner of revenue to cover the refunds associated with this exemption, capping the total refunds at $13,000,000. The refunds will be processed in the order that complete and accurate applications are received. The provisions also require that if the tax was paid by a contractor or builder, they must provide a statement detailing the costs and taxes paid on the exempt items to the refund applicant. The bill is set to take effect the day following its final enactment.