HF3027 (Legislative Session 94 (2025-2026))

Cities and counties authorized to impose local sales taxes for certain projects, oversight provided, revenue sharing required, report required, and money appropriated.

AI Generated Summary

Purpose of the Bill

This bill aims to regulate how cities and counties in Minnesota can impose local sales taxes. It introduces rules to ensure accountability and transparency when these taxes are used to fund specific local projects.

Main Provisions

  • Authorization for Local Sales Taxes: The bill allows political subdivisions like cities and counties to impose local sales taxes for funding specific projects. It sets the conditions under which these taxes can be approved.
  • Restrictions on Promotion: Cities and counties cannot use funds to promote a referendum for a new local sales tax. Instead, funds may only be used for conducting referendums, sharing detailed project costs, and organizing public forums for open discussion.
  • Reporting and Oversight: The bill requires political subdivisions to maintain transparency by providing details on how local sales tax revenues will be spent, including specified projects and their individual costs.

Significant Changes to Existing Law

  • The bill amends Minnesota Statutes, section 297A.99, refining existing rules on local sales taxes.
  • It repeals a conflicting subdivision (subdivision 3a) from the same statute to streamline the implementation of new local sales taxes.
  • The new coding proposal further clarifies how these taxes should be handled moving forward, reinforcing the oversight mechanism.

Relevant Terms

local sales taxes, political subdivisions, transparency, accountability, public forums, referendums, Minnesota Statutes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 09, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies potential sources of authority for imposing local sales taxes."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill amends the authorization and scope of local sales taxes imposed by political subdivisions under section 297A.99.",
      "modified": [
        "Introduces additional conditions and clarifications on the imposition of local sales taxes."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 1"
  }
]