ST. PAUL – In an effort to save the City of Mora thousands of dollars this summer, State Representative Jason Rarick (R-Pine City) is sponsoring legislation that would allow the community to avoid paying sales taxes as it constructs a wastewater treatment facility.
“There are statewide bill proposals that would accomplish this same goal, but they would not take effect until July 1,” Rarick said. “This proposal is specific to Mora and would be retroactive to January 1 so the City could receive the sales tax exemption and ease its financial burden.”
Rarick’s bill would exempt materials, supplies, and equipment purchases used in constructing a wastewater treatment facility in the city of Mora from the sales tax. Exempt materials must be purchased between January 1, 2015, and January 1, 2017.
The exemption would apply to purchases by the City, or a contractor, subcontractor or builder; however the tax must be paid at the time of the purchase of the materials and the city must apply for the refund.
Rarick’s bill is currently under discussion in the Minnesota House Taxes Committee.