Bill > HF3027

This bill comprehensively reforms how Minnesota cities and counties can impose local sales taxes for specific capital improvement projects. The bill establishes a new framework for local sales tax authorization that requires extensive documentation, public hearings, voter approval, and revenue sharing. Under the new system, political subdivisions can impose a local sales tax up to one-half of one percent to fund specified capital projects like community centers, sports complexes, district courts, law enforcement centers, libraries, parks, and trails. Each project must serve a regional population and provide economic development benefits. Political subdivisions must hold a public hearing, adopt a resolution, obtain community support through letters from surrounding local governments, and receive voter approval through a detailed ballot question. The tax can be imposed for a maximum of 30 years or until sufficient revenue is raised, with provisions allowing for modest increases due to inflation. Importantly, 15-20% of the tax revenue must be shared with other qualified recipients in the same economic development region, creating a redistribution mechanism to support broader regional development. The bill also establishes robust oversight, requiring annual financial reporting and empowering the commissioner to verify compliance and potentially expire taxes that do not meet legal requirements.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3027&ssn=0&y=2025