This bill introduces a refundable sales tax exemption for specific items and services purchased to repair property damage caused by natural disasters. It amends Minnesota Statutes 2024, section 297A.67, by adding a new subdivision that outlines the items eligible for exemption, including windows, doors, roofing materials, power generators, and tree removal services, among others. The exemption applies only if a natural disaster is declared by the federal government or a local official, and the purchase is made within two years of the disaster declaration. Additionally, the tax on these purchases will be collected as if they were taxable, but will be refunded according to the provisions in section 297A.75.

The bill also amends Minnesota Statutes 2025 Supplement, section 297A.75, to include the new exemption for repairs related to natural disasters in the list of items for which tax must be collected and later refunded. It specifies that the owner of the damaged property is eligible to apply for the refund. Furthermore, it establishes that refunds for eligible purchases made for disasters declared between June 1, 2025, and January 31, 2026, can be issued for purchases made through December 31, 2027, or two years after the disaster, whichever is later. The effective date for these provisions is retroactive for sales and purchases made after May 31, 2025, with a specific provision stating that refunds will not be issued until after June 30, 2026.

Statutes affected:
Introduction: 297A.67