On Tuesday, March 19, the Senate Taxes Committee heard legislation, authored by Senator Julia Coleman (R-Waconia), to provide a construction sales tax exemption for the upcoming Chanhassen Bluffs Sports Complex project. SF 3385 would exempt materials, supplies, and equipment used in the construction, reconstruction upgrade, expansion and renovation remodeling of the Complex. The exemption would be administered as a refund and would apply to purchases made after Aug. 31, 2025, and before Oct. 1, 2026.

“Carver County is the fastest growing county in the entire state, and a larger recreational facility is needed to support Chanhassen’s continued growth,”Sen. Coleman said. “By providing a sales tax exemption for this project, we would help lower construction costs and reduce the property tax impact in Chanhassen. I will continue to partner with state and local leaders as we work to make this project a reality.”

During the bill hearing, Chanhassen Mayor Elise Ryan testified in support of Sen. Coleman’s legislation. During her testimony, Mayor Ryan shared that, “The facility will help fulfill Chanhassen’s mission to be a community for life, offering amenities for ages all ages and abilities. SF 3385 would reduce the total project cost for our planned facility improvements, and we greatly appreciate your consideration.”

According to the City of Chanhassen, current laws and regulations mandate a complex procedure for cities, counties, towns, and school districts to qualify for the local government sales tax exemption on building materials for public projects. This process involves separate bidding of labor and materials, designating contractors as purchasing agents, and assuming liability for defects or delays. This complexity discourages many local governments from pursuing the exemption altogether.

SF 3385 was laid over for possible inclusion in a tax bill package later in session.