This bill establishes a refundable sales and use tax exemption for construction materials and supplies used in the Ely Housing Redevelopment Authority's workforce housing project, Wilderness Escape, in the city of Ely. The exemption applies to materials purchased between April 30, 2026, and January 1, 2028. The bill outlines that the tax must be collected as if the standard rate under Minnesota Statutes, section 297A.62, subdivision 1, is applied, and a refund equal to the tax paid on exempt items will be issued to the project owner. The application process for the refund requires documentation to verify the tax paid, and refunds will not be issued until after June 30, 2026.

Additionally, the bill includes an appropriation clause, ensuring that the necessary funds to cover the refunds are allocated to the commissioner of revenue. The effective date of this legislation is retroactive for sales and purchases made within the specified timeframe.