MN HF5262

Materials and supplies used in construction of new single-family residential housing for first-time homebuyers are exempt from sales tax if the construction cost does not exceed $460,000 and the home is owned and occupied by the first-time homebuyer.

Sales tax must be initially collected on these materials at the standard rate under Minnesota Statutes section 297A.62, subdivision 1, then refunded to the homeowner upon application.

The homeowner (residential housing owner) is the eligible person who may apply for the refund on forms prescribed by the commissioner.

This exemption is effective for sales and purchases made after June 30, 2024, and expires on July 1, 2032.

The bill amends Minnesota Statutes sections 297A.71 and 297A.75 to establish the new exemption and refund procedures alongside existing exemptions for other types of construction projects.