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S.F. No. 829 - Sales Tax Exemption for Certain Construction Materials, Supplies, and Equipment – City of Mora
Author: Senator Tony Lourey
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: March 15, 2016


Under current law, purchases by cities, counties, and towns are exempt from sales tax, but purchases made by contractors, subcontractors, and builders for construction projects for the local government entities are not exempt unless they are purchased as part of a non-lump-sum contract.  This bill provides a sales tax exemption for materials and supplies used in and equipment incorporated into a wastewater treatment facility owned and operated by the city of Mora, including purchases made by contractors, subcontractors, and builders.  Sales tax must be charged on purchases made by these entities and then refunded.  The contractor, subcontractor, or builder must provide the city with a statement listing the cost and sales tax paid on the exempt items purchased.  The city must apply for the sales tax exemption on behalf of the contractor, subcontractor, or builder. 

Effective for purchases made after January 1, 2015, and before January 1, 2017.

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