This bill proposes a sales and use tax exemption specifically for construction materials used in the renovation of Moorhead City Hall. It establishes that materials and supplies purchased for this project after February 28, 2025, and before June 1, 2027, will be exempt from sales and use tax as outlined in Minnesota Statutes, chapter 297A. The bill also stipulates that the tax will be collected initially but refunded later, following the procedures set forth in Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases will not be issued until after June 30, 2025.

Additionally, the bill includes an appropriation from the general fund to the commissioner of revenue to cover the refunds required under this exemption. The effective date of this legislation is retroactive for sales and purchases made within the specified timeframe, ensuring that the tax benefits apply to all qualifying transactions related to the Moorhead City Hall renovation project.