6.1.A. ERMUSR 04-12-2016 - Laserfiche WebLink

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state, but they believe it would be useful to take another look at the program. They thought there would be opportunities to work on the infrastructure project provisions of the bill. DFL Representatives Hortman and Simonson also expressed willingness to work with Rep. Baker on a bill that could get bipartisan support. The bill was laid over for possible inclusion in a future omnibus bill. MMUA Government Relations staff will continue to work with Rep. Baker and other stakeholders to move forward with CIP improvements that will benefit our members. Mora Wastewater Treatment Tax Exemption On Thursday, legislation allowing the City of Mora to receive a refundable tax credit for sales taxes paid on construction materials for its wastewater treatment facility was heard in the Senate Tax Committee. SF 829 is authored by Sen. Tony Lourey (DFL-Kerrick). Mora City Administrator Joel Dhien explained that the new $5.3 million facility is currently under construction. Although the City could have received a sales tax exemption for construction materials had they purchased them separately from the contractor, separating labor and materials would add to the overall project costs. Concerns with material storage and liability also played into the decision to use traditional labor/material construction contracting. A refund of the construction materials sales tax would save the City around $200,000. This issue was also discussed in the 2015 Legislative Session, and the House included in its tax bill a provision to allow all cities to apply for a refundable credit of sales taxes paid on construction material (an initiative which has been strongly supported by MMUA). Senate Tax Char Rod Skoe (DFL- Clearbrook) explained that the Senate is aware of the issue and is "checking to see if there is a mechanism to streamline the process" of cities accessing the construction materials sales tax exemption. The Senate's concern is that contractors would over-purchase materials in an effort to use the cities' tax exemption. Skoe noted that the issue would be discussed with the House in the tax conference committee but acknowledged Mora would need a retroactive solution since their project is already underway. MMUA Government Relations staff will continue to monitor the construction materials sales tax discussion and advocate for its inclusion in a final tax bill. Railroad Crossing Fee Heads to Senate Floor (Again) On Thursday, legislation to establish a uniform $750 fee for utilities crossing railroad right- of-way was discussed in the Senate Environment and Energy Committee. The bill (SF 877) had advanced to the Senate floor during the 2015 Legislative Session, but never received a vote, so was procedurally returned to committee. A favorable amendment for utilities was adopted by the committee and makes the bill consistent with a law that was just passed in South Dakota. Representatives from MREA and the MN Telecom Alliance highlighted the inconsistent and high fees that utilities were being charged to cross railroad right-of-way. The MN Regional Railroad Association and Union Pacific expressed their opposition. The bill was again passed to the Senate floor. 221