This bill establishes a refundable sales tax exemption for construction materials and supplies used in specific projects within Independent School District No. 186 in Pequot Lakes, Minnesota. The exemption applies to materials and equipment purchased for the construction, reconstruction, upgrade, expansion, renovation, or remodeling of Eagle View Elementary School, Pequot Lakes Middle School, Pequot Lakes High School, and outdoor facilities. The exemption is valid for purchases made between January 1, 2026, and December 31, 2036. The tax will be collected as if the standard rate applied, but the governmental entity overseeing the project will be responsible for applying for the refund.

Additionally, the bill 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 December 31, 2025, and before January 1, 2037.