HF4280

Purpose

To reduce the cost of a local infrastructure project by providing a sales and use tax exemption (implemented as a refund) for construction materials used in building, upgrading, or remodeling a wastewater treatment facility in the City of Albert Lea.

Main Provisions

• Exemption/refund for project materials: Materials, supplies, and equipment used in the construction, reconstruction, upgrade, expansion, renovation, or remodeling of the Albert Lea wastewater treatment facility are exempt from sales and use tax under Minnesota law.
• How the exemption works: The tax is collected as if the normal rate (per the relevant statute) applied, and then the amount is refunded through the same process used for other eligible projects.
• Timing for refunds: Eligible refunds are not issued until after June 30.
• Funding for refunds: The money needed to pay these refunds is appropriated from the general fund to the commissioner of revenue.

Significant Changes to Existing Law

• Creates a targeted, local sales tax exemption/refund for a specific Albert Lea wastewater treatment facility project, using the state’s existing refund mechanisms (297A.62 and 297A.75).
• Establishes a general fund appropriation to cover the refunds, routed through the commissioner of revenue.

Terminology and Related Terms

• sales and use tax exemption
• construction materials
• wastewater treatment facility
• City of Albert Lea
• refund
• Minnesota Statutes chapter 297A
• 297A.62
• 297A.75
• general fund
• commissioner of revenue
• appropriation
• eligible purchases

Relevant Terms

• sales tax exemption
• construction materials
• wastewater treatment facility
• Albert Lea
• refund
• general fund appropriation
• commissioner of revenue
• 297A.62
• 297A.75