MN HF2387

Accelerates the effective date of sales and use tax exemptions for local governments from January 1, 2017 to January 1, 2016, expanding the definition of "local governments" to include special districts, instrumentalities of cities/counties/townships, and joint powers boards.

Applies retroactively to all sales and purchases made after December 31, 2015, allowing affected local governments to apply for refunds of taxes already paid on exempt purchases.

Establishes a refund process through the commissioner of revenue for special districts, local government instrumentalities, and joint powers boards to claim taxes paid between January 1, 2016 and January 1, 2016 (a one-day period).

Refunds will include interest at the rate specified in Minnesota Statutes section 270C.405, calculated from 90 days after the refund claim is filed, with funding annually appropriated to the commissioner.

Each eligible entity may file only one refund application covering all taxes paid during the covered period, with the application requiring sufficient documentation for the commissioner to verify the amount.