Destination Medical Center Exemption

The destination medical center (DMC) construction exemption is effective July 1, 2015. 

Materials used to construct or improve buildings and infrastructures are exempt if the project is both:

• financed with public funds
• included in the approved development plan 

Note: Equipment incorporated into the DMC also qualifies for the exemption.Qualifying projects include:

• building demolition, repair, or rehabilitation 
• land remediation
• real property acquisition

Examples include:

• construction or reconstruction of cultural facilities
• recreational facilities
• building facades
• roadways
• utilities
• sewer systems
• parking facilities
• landscaping
• land preparation for private development

Claiming the Exemption

To claim the exemption, give your supplier a completed Form ST3, Certificate of Exemption. 

Specify the Other exemption and write in “7. Construction exemption for special projects under M.S. 297A.71."