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HF1755 (Legislative Session 94 (2025-2026))

Authority and requirements for local sales and use taxes modified.

Related bill: SF375

AI Generated Summary

This bill, H.F. No. 1755, authored by Representative Freiberg, relates to modifications in local sales and use taxes in the state of Minnesota. It proposes amendments to Minnesota Statutes 2024, section 297A.99, and repeals subdivision 3a of the same section.

Key Provisions of the Bill:

  1. Modification of Authority for Local Sales and Use Taxes:

    • The bill revises the rules under which political subdivisions (cities, counties, and other local governments) in Minnesota can impose general sales taxes.
    • It consolidates and clarifies the authorization process under specific statutory sections.

  2. Preemption of Special Laws:

    • New local sales taxes must follow the uniform provisions described in the statute.
    • Any special laws enacted before July 1, 2025, will be subject to these general provisions, ensuring a standardized approach to local sales tax implementation.

  3. Restrictions on Local Government Spending for Tax Referendums:

    • Local governments are prohibited from using public funds to promote a referendum supporting the implementation of a local sales tax.
    • Public funds may only be used for:
      • Conducting the referendum.
      • Disseminating neutral information (e.g., listing specific projects and their costs).
      • Holding public forums where both proponents and opponents have equal time to express their views.
      • Providing objective data on the economic impact of the proposed tax.

  4. Maintains Restrictions on Vehicle Sales Taxes:

    • The bill reiterates that local governments may not impose special excise taxes on motor vehicles unless specifically authorized under another provision (Minnesota Statutes, section 297A.993).

Repeal of Existing Law:

  • The bill repeals Minnesota Statutes 2024, section 297A.99, subdivision 3a, which may indicate the removal of an existing provision governing how local governments impose or seek approval for sales tax collection.

Overall Impact:

This bill tightens oversight of local sales and use tax authority, ensuring that local governments follow standardized procedures while limiting their ability to influence public opinion on tax referendums using government funds. It also enforces clear conditions for imposing sales taxes and ensures compliance with broader state tax policies.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "New clarification on preemption by state sales tax provisions."
      ],
      "removed": [
        "Text related to previous excise tax provisions that are outdated."
      ],
      "summary": "This bill modifies the authorization scope for local sales taxes under section 297A.99.",
      "modified": [
        "Clarification on sales tax application to subdivisions enacted before specific dates."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 1"
  }
]

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