Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 532 - Sales Tax Exemption for Contractor Purchases of Construction Materials for Certain Local Government and Nonprofit Entities (as proposed by the A-2 amendment)
Author: Senator Ann H. Rest
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: March 2, 2015


Under current law, construction materials purchased directly by certain local government organizations and nonprofits for projects under a non-lump sum contract are exempt from sales tax.  Materials purchased by contractors for such projects are not exempt.  This bill provides a sales tax exemption for construction materials purchased by a contractor, subcontractor, or builder for projects on behalf of eligible local government and nonprofit entities, and for building materials purchased by those entities for local government and school district public infrastructure projects.  The exemption is effective for sales and purchases made after June 30, 2015. 




Provides a sales tax exemption for contractor purchases of building materials, supplies, and equipment used or consumed in buildings or facilities principally used by the following entities:

  • School districts;
  • Local governments;
  • Nonprofit or local-government-owned hospitals and nursing homes;
  • Public libraries;
  • Nonprofit organizations organized exclusively for charitable, religious, or educational purposes;
  • Nonprofit senior citizen organizations; and
  • Boarding care homes, outpatient surgical centers, and critical access dental providers.

Also provides an exemption for materials purchased by contractors for infrastructure facilities owned by local governments and schools. 

The sales tax on qualifying purchases must be paid upfront and refunded as required in sections 2 to 4


Requires that the sales tax sales tax on qualifying purchases must be paid upfront and refunded.


Requires that an applicant for a sales tax refund on qualifying purchases must be an eligible entity listed in section 1


Requires the contractor, subcontractor, or builder to provide the eligible entity with information sufficient to apply for the sales tax refund. 


Check on the status of this bill
Back to Senate Counsel and Research Bill Summaries page

This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
Last review or update: 03/02/2015
If you see any errors on this page, please e-mail us at