Exempts sales and use tax on construction materials for certain public entities.

This bill provides an exemption from sales and use tax on materials, supplies, and equipment purchased by contractors or subcontractors for construction, reconstruction, repair, maintenance, or improvement of eligible capital projects. The exemption applies to projects financed by the state of Minnesota and local governments. The tax must be imposed and collected, then refunded. Refunds for eligible purchases cannot be issued until after June 30, 2026.

Exempts sales and use tax on construction materials for certain public entities.

This bill provides an exemption from sales and use tax on materials, supplies, and equipment purchased by contractors or subcontractors for construction, reconstruction, repair, maintenance, or improvement of eligible capital projects. The exemption applies to projects financed by the state of Minnesota and local governments. The tax must be imposed and collected, then refunded. Refunds for eligible purchases cannot be issued until after June 30, 2026.