Exempts local governments from sales tax on motor vehicle leases and construction materials purchased by contractors or subcontractors.

The bill amends Minnesota Statutes to exempt local governments from sales tax on the purchase of motor vehicle leases and construction materials when these purchases are made by a contractor or subcontractor. This change applies to sales and purchases made after June 30, 2026. The exemption is specific to local governments, including statutory or home rule charter cities, counties, townships, special districts, and any instrumentality or joint powers board created under state law.

Exempts local governments from sales tax on motor vehicle leases and construction materials purchased by contractors or subcontractors.

The bill amends Minnesota Statutes to exempt local governments from sales tax on the purchase of motor vehicle leases and construction materials when these purchases are made by a contractor or subcontractor. This change applies to sales and purchases made after June 30, 2026. The exemption is specific to local governments, including statutory or home rule charter cities, counties, townships, special districts, and any instrumentality or joint powers board created under state law.