HF2061 Summary

• Exempts most sales to the Minnesota Department of Transportation from sales tax, except for building construction materials under lump-sum contracts and construction materials for non-transportation facilities.

• Exempts materials and equipment purchased by contractors for Department of Transportation buildings and facilities, as well as public transit and transportation capital projects financed by the Department of Transportation or local governments.

• Requires tax to be collected at the standard rate on exempt items, then refunded to eligible public entities that own or contract for the projects, with refunds restricted for use in transit or transportation purposes.

• Defines "public transit capital project" as projects under state transit financing sections or commuter/rail passenger projects, and "other transportation capital project" as highways, bridges, and streets within public rights-of-way.

• Effective for sales and purchases made after June 30, 2017.