Cottage Grove; refundable exemption provided for construction material for clean water infrastructure.

A bill for an act

relating to taxation; sales and use; providing a refundable exemption for

construction materials for clean water infrastructure in the city of Cottage Grove.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.
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CITY OF COTTAGE GROVE; SALES TAX EXEMPTION FOR

CONSTRUCTION MATERIALS.
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Subdivision 1.

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Exemption; refund.

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(a) Materials and supplies used or consumed in and

equipment incorporated into the TH 61/80th Street Rehabilitation Project from Highway

61 to Ideal Avenue South as a primary connection to Highway 61 in the city of Cottage

Grove are exempt from sales and use tax under Minnesota Statutes, chapter 297A, if the

materials, supplies, and equipment are purchased after March 31, 2026, and before January

1, 2028.

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(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section

297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided

for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).

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Subd. 2.

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Appropriation.

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The amount required to pay the refunds under subdivision 1

is appropriated from the general fund to the commissioner of revenue.

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EFFECTIVE DATE.

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This section is effective retroactively for sales and purchases

made after March 31, 2026, and before January 1, 2028.

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