This bill proposes a sales and use tax exemption for construction materials and supplies used in the construction of a new water treatment facility in the city of Monticello. Specifically, it establishes a refundable exemption for materials and equipment purchased between August 31, 2025, and January 1, 2030. The bill stipulates that the tax will be collected as if the standard rates applied, but will then be refunded to the governmental entity responsible for the project, following the procedures outlined in existing law.

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 exemption is set for sales and purchases made within the specified timeframe. Overall, the legislation aims to support the development of essential water infrastructure in Monticello by alleviating some of the financial burdens associated with construction costs.