S.F. No. 1519 Summary

• Creates a new sales tax exemption for building, construction, and reconstruction materials purchased by contractors for projects benefiting school districts, local governments, hospitals, nursing homes, libraries, nonprofits, and certain healthcare providers.

• Extends the exemption to cover materials used in public infrastructure projects (roads, bridges, water facilities, wastewater facilities) purchased by contractors working for school districts or local governments.

• Establishes a refund mechanism requiring sales tax to be collected at the standard rate and then refunded to eligible applicants upon submission of forms prescribed by the commissioner.

• Adds contractors, subcontractors, and builders as eligible refund applicants, requiring them to furnish itemized statements of exempt materials and taxes paid to the refund applicant.

• Effective for all sales and purchases made after June 30, 2023.