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S.F. No. 3365 - Sales tax exemption for Elko New Market wastewater treatment facility (as proposed to be amended by A-1)
Author: Senator Kevin L. Dahle
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: April 18, 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 Elko New Market, including purchases made by contractors, subcontractors, and builders.  Purchases must be made after July 1, 2014, and before June 1, 2016.  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. 

Applications for refund must be made by June 30, 2017.

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