Courthouse facility construction materials tax exemption provision

A bill for an act

relating to taxation; sales and use; providing an exemption for construction materials

used in a courthouse facility; amending Minnesota Statutes 2024, section 297A.71,

by adding a subdivision; Minnesota Statutes 2025 Supplement, section 297A.75,

subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 297A.71, is amended by adding a subdivision

to read:

new text begin

Subd. 55.

new text end

new text begin

Courthouse facilities.

new text end

new text begin

(a) Materials and supplies used or consumed in and

equipment incorporated into the construction, remodeling, expansion, or improvement of

a county courthouse facility are exempt.

new text end

new text begin

(b) The tax must be imposed and collected as if the rate under section 297A.62,

subdivision 1, applied and then refunded in the manner provided in section 297A.75.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for sales and purchases made after June

30, 2026.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 297A.75, subdivision 1, is amended

to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following

exempt items must be imposed and collected as if the sale were taxable and the rate under

section
297A.62, subdivision 1
, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section

297A.71, subdivision 13
;

(2) building materials for mineral production facilities exempt under section
297A.71,

subdivision 14
;

(3) building materials for correctional facilities under section
297A.71, subdivision 3
;

(4) building materials used in a residence for veterans with a disability exempt under

section
297A.71, subdivision 11
;

(5) elevators and building materials exempt under section
297A.71, subdivision 12
;

(6) materials and supplies for qualified low-income housing under section
297A.71,

subdivision 23
;

(7) materials, supplies, and equipment for municipal electric utility facilities under

section
297A.71, subdivision 35
;

(8) equipment and materials used for the generation, transmission, and distribution of

electrical energy and an aerial camera package exempt under section
297A.68, subdivision

37
;

(9) commuter rail vehicle and repair parts under section
297A.70, subdivision 3
, paragraph

(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and

facilities under section
297A.71, subdivision 40
;

(11) enterprise information technology equipment and computer software for use in a

qualified data center, qualified large-scale data center, or qualified refurbished data center

exempt under section
297A.68, subdivision 42
;

(12) materials, supplies, and equipment for qualifying capital projects under section

297A.71, subdivision 44
, paragraphs (a) and (b);

(13) items purchased for use in providing critical access dental services exempt under

section
297A.70, subdivision 7
, paragraph (c);

(14) items and services purchased under a business subsidy agreement for use or

consumption primarily in greater Minnesota exempt under section
297A.68, subdivision

44
;

(15) building materials, equipment, and supplies for constructing or replacing real

property exempt under section
297A.71, subdivisions 49
; 50, paragraph (b); and 51;

(16) building materials, equipment, and supplies for qualifying capital projects under

section
297A.71, subdivision 52
;

(17) building materials, equipment, and supplies for constructing, remodeling, expanding,

or improving a fire station, police station, or related facilities exempt under section
297A.71,
deleted text begin

subdivision
deleted text end
new text begin
subdivisions
new text end
53
new text begin
and 55
new text end
; and

(18) building materials, equipment, and supplies for constructing, remodeling, or

improving a sustainable aviation fuel facility exempt under section
297A.71, subdivision

54
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for sales and purchases made after June

30, 2026.

new text end