New single-family residential housing for first-time homebuyers refundable construction exemption provision

SF 2171 creates a refundable sales tax exemption for construction materials used in new single-family homes built for first-time homebuyers in Minnesota. It directly affects first-time homebuyers who own and occupy the home, covering taxes paid on the first $460,000 of construction costs. The exemption works by requiring sellers to collect the tax upfront and then refund it to the homebuyer through a standard process. The provision expires on July 1, 2033, and applies to construction completed after June 30, 2025. This bill modifies Minnesota Statutes sections 297A.71 and 297A.75 to establish this specific tax relief.