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Committee lays over East Grand Forks bill to refund sales tax on civic center construction materials
Summary
House File 2658 would provide a refundable sales tax exemption on construction materials for upgrades to East Grand Forks Civic Center and VFW Memorial Arena. City officials said the facilities are aging and the exemption would offset inflation and extend local funds; the committee laid the bill over for omnibus consideration.
The House Tax Committee heard House File 2658 on Oct. 27, 2025, proposing a refundable sales tax exemption on construction materials for upgrades to the East Grand Forks Civic Center Sports Complex and the VFW Memorial Arena.
Representative Gander presented the bill and called city officials. Jeremy King, Parks and Recreation superintendent for East Grand Forks, said the civic center is more than 50 years old and the VFW Arena more than 45 years old; a 2022 economic-impact study estimated winter sports contributed $2.1 million in direct impact and drew roughly 9,000 visitors to the city. King said inflation and construction delays have extended the project timeline and that a sales-tax refund on materials would stretch local dollars.
City Administrator Reid Hutton also testified and stood for questions. Representative Gander said the proposal has been trimmed and scaled over five years to essential repairs and upgrades; he moved that the bill be laid over for possible inclusion in the omnibus tax bill. The committee approved the motion by voice vote.
No department testimony was recorded during the hearing. Committee members did not adopt amendments; further fiscal details will be addressed in omnibus negotiations.
