SF 4498 Summary

• Creates a new sales tax exemption for building, construction, and reconstruction materials purchased by contractors when used in facilities operated by school districts, local governments, public hospitals and nursing homes, libraries, nonprofit groups, and critical access dental providers.

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

• Requires tax to be initially collected at the standard rate under section 297A.62, subdivision 1, then refunded through an application process to the eligible entity.

• Adds construction materials purchased under the new exemption to the existing refund provisions in section 297A.75, making the eligible entities themselves the applicants for refunds.

• Effective date is June 30, 2023, for all modifications and refund provisions.