Construction materials used for road construction or repair provided an exemption if purchased by contractors.

HF 617 creates a sales tax exemption for construction materials purchased by contractors working on road projects for school districts or local governments. The bill adds a new provision (subdivision 55) to Minnesota's tax code, exempting materials used in road construction, repair, or maintenance when bought by contractors for these public entities. Contractors would pay the standard sales tax upfront but receive a refund through the existing tax process outlined in section 297A.75. The exemption applies to purchases made after June 30, 2025, directly affecting contractors and public entities managing road infrastructure.