Bill > SF375

This bill modifies the authority and requirements for local sales and use taxes in Minnesota, establishing a comprehensive new framework for how political subdivisions can impose, extend, or modify local sales taxes. The legislation creates detailed guidelines for imposing local sales taxes to fund specific types of capital projects with regional significance, such as convention centers, correctional facilities, parks, trails, and community centers. Political subdivisions must now conduct a public hearing, adopt a resolution, and obtain voter approval for local sales tax initiatives, with each project requiring a separate ballot question. The bill introduces strict requirements for demonstrating a project's regional benefit, including providing documentation about economic impact, project specifications, and potential regional support. Additionally, the bill establishes a local sales tax equalization distribution mechanism, where contributors (political subdivisions imposing a local sales tax) must contribute a percentage of their collected taxes to a special fund that will be distributed to qualifying adjacent political subdivisions that have not previously imposed a local sales tax. The total local sales tax rate is capped at one-half of one percent for most jurisdictions, with some exceptions, and any tax imposed must have a maximum collection period of 30 years or until project costs are fully funded. The bill aims to provide more transparency, accountability, and regional equity in the implementation of local sales taxes.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0375&ssn=0&y=2025