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 that materials and equipment purchased for this purpose will be exempt from sales and use tax if acquired between August 31, 2025, and January 1, 2030. The tax will be initially imposed and collected, but then refunded to the governmental entity responsible for the project, following the procedures outlined in existing law for similar projects.

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.