Exemption provisions modified for construction materials by contractors, and refund provision added.

HF 618 modifies Minnesota's sales tax exemption rules for construction materials used by contractors. It adds new categories of eligible entities - including school districts, local governments, hospitals, libraries, nonprofits, and specific healthcare facilities - that qualify for exemption on materials purchased for their projects. The bill also adds a refund process: contractors must pay the standard sales tax upfront but can later apply to get it back through the Department of Revenue. This change applies to materials used in construction, repair, or improvement projects for these qualifying organizations, effective after June 30, 2025.