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Committee lays over sales‑tax exemption for Cottage Grove 80th Street project
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Summary
House File 49‑23 would exempt or refund sales tax on construction materials for the 80th Street rehabilitation in Cottage Grove; city and public works director say the $13.125 million project is regionally significant and the exemption would save an estimated $310,000–$465,000.
Representative Johnson moved House File 49‑23 to the House Tax Committee, seeking a sales‑tax exemption on construction materials for an 80th Street rehabilitation project in Cottage Grove.
Ryan Burfein, public works director for the City of Cottage Grove, testified the project will modernize a busy arterial corridor that carries more than 27,000 vehicles per day, including pavement rehabilitation, signal replacement, added turn lanes, ADA upgrades and utility repairs. Burfein provided a total construction cost of $13,125,000 and said granting a sales‑tax exemption on construction materials would save the city an estimated $310,000–$465,000.
Members asked about precedent and whether cities routinely seek one‑off exemptions. House research staff explained current practice: local governments file project‑by‑project exemption bills, and prior tax bills have included similar one‑off exemptions; some members said a more permanent, automatic approach has been proposed in past sessions but would be a large budgetary undertaking.
Representative Johnson said he will work with members on ways to make exemption treatment more predictable for communities and moved the bill to be laid over for possible inclusion in the omnibus tax bill.
