MN SF4497

Adds a new sales tax exemption for materials, supplies, and equipment used in road construction, reconstruction, repair, maintenance, or improvement when purchased by contractors or subcontractors for school districts or local governments.

Tax on exempt road construction materials must be collected at the standard rate under Minnesota Statutes section 297A.62, subdivision 1, and then refunded to the eligible entity.

Adds road construction materials to the list of exempt items in the tax refund provisions of Minnesota Statutes section 297A.75, requiring the eligible school district or local government to apply for the refund.

Contractors, subcontractors, or builders must furnish refund applicants a statement detailing the cost of exempt items and taxes paid on them.

All provisions are effective for sales and purchases made after June 30, 2023.