This bill proposes a 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 purchased between January 1, 2026, and December 31, 2036, for projects including additions and improvements to Eagle View Elementary School, Pequot Lakes Middle School, Pequot Lakes High School, and outdoor facilities. The bill stipulates that the sales tax will be collected initially but refunded to the governmental entity responsible for the project, following the procedures outlined in Minnesota Statutes.

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.