SF70

Purpose

• Provide a temporary sales and use tax exemption, in the form of a refundable credit, for Becker Public School District construction projects.

Main provisions

• Exemption for construction materials, supplies, and equipment used in and incorporated into specific Becker Public School District construction and renovation projects.
• The exemption applies to purchases for projects at the following Becker facilities: Early Childhood, Primary, Intermediate, Middle, and High Schools; Transportation Building; and the Becker Multi-Purpose Athletic Facility in Independent School District No. 726.

Eligible projects and facilities

• Projects covered include construction and renovation work at:
  • Becker Early Childhood
  • Becker Primary School
  • Becker Intermediate School
  • Becker Middle School
  • Becker High School
  • Becker Transportation Building
  • Becker Multi-Purpose Athletic Facility

Timing and eligibility window

• The exemption applies only to materials, supplies, and equipment purchased after December 31, 2021 and before January 1, 2025.

Tax treatment and refund mechanics

• The state tax is assessed and collected as if the standard rate (under Minnesota law) applied.
• The collected tax is then refunded to the project in the same manner as the refund process described for other projects under the state’s refund provisions.
• Refunds for eligible purchases are not issued until after June 30, 2025.

Funding and appropriation

• The amount needed to pay these refunds is appropriated from the General Fund to the Commissioner of Revenue.

Significant changes to existing law

• Creates a temporary, refundable sales and use tax exemption specifically for Becker Public School District construction materials and equipment.
• Requires applying the refund through the same procedures used for existing projects, with a defined post-2025 refund timeline.
• Establishes a General Fund appropriation to finance the refunds.

Relevant terms

Becker Public School District; sales tax; use tax; construction materials; exemption; refunds; refundable exemption; Becker facilities (Early Childhood, Primary, Intermediate, Middle, High School, Transportation Building, Multi-Purpose Athletic Facility); Independent School District No. 726; Minnesota Statutes chapter 297A; 297A.62; 297A.75; after December 31, 2021; before January 1, 2025; refunds after June 30, 2025; Commissioner of Revenue; General Fund.