Woodbury mayor, lawmakers seek tax exemption on construction materials to lower PFAS cleanup costs

House File 1529, sponsored by Representative Cha, would provide a refundable sales tax exemption on city-funded construction materials, supplies and equipment used to build a permanent water treatment plant, a water tower and associated pipelines in Woodbury to address PFAS contamination.

Mayor Ann Burt of Woodbury told the Committee the city has worked on water issues for more than a decade, has restrictive water-use policies and has already built temporary treatment systems while planning a permanent treatment plant. She said that although settlement funds from 3M will cover a significant portion of construction, the city still faces a funding gap of up to $35 million to complete the long-term solution. Burt asked lawmakers to pass HF1529 to reduce costs for Woodbury residents by exempting sales tax on city-funded materials for the project.

Representative Cha framed the bill as necessary to ensure safe drinking water for more than 90,000 Woodbury residents and noted the proposal is meant to reduce the local share of the cleanup burden. Representative Johnson and other committee members expressed support and concern about the long-term cost and maintenance obligations for affected communities. Committee members and sponsors described the 3M settlement as inadequate to fully address remediation costs and thanked the mayor and local leaders for stepping up on behalf of residents.

Representative Cha said the bill is intended to “bring some justice” to communities affected by PFAS contamination and highlighted that the impacts touch families, pets and the environment. The bill was laid over for possible inclusion in the 2025 omnibus tax bill.