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SF375 (Legislative Session 94 (2025-2026))

Authority and requirements modification for local sales and use taxes

Related bill: HF1755

AI Generated Summary

Senate File No. 375 is a proposed bill in Minnesota that seeks to modify the rules related to how local sales and use taxes are implemented by political subdivisions, such as counties or cities. Here are the key elements:

  1. Authorization and Scope: The bill outlines the conditions under which a political subdivision can impose a general sales tax. It can be authorized by specific sections of the state statute, by special law, or if the tax was already in place before January 1, 1982.

  2. Preemption of Special Laws: The bill specifies that the general rules it sets for local sales taxes will override any special laws enacted before June 2, 1997, unless those laws explicitly state they are exempt from these rules. It also applies to special laws enacted on or after June 2, 1997, if they do not exempt themselves, and to laws enacted before July 1, 2025.

  3. Exclusions: The regulations do not apply to sales taxes on motor vehicles. Furthermore, from July 1, 2019, political subdivisions cannot impose special excise taxes on motor vehicles unless authorized by the mentioned sections.

  4. Restrictions on Promotion: Political subdivisions are prohibited from using funds to advertise support for a referendum on imposing a local sales tax. Funds can only be used for conducting the referendum, disseminating specific project information related to the tax, hosting public forums to discuss the merits of the referendum, and providing data about the impact of the tax and the projects it would fund.

Overall, this bill aims to standardize and clarify the rules under which local sales taxes can be imposed, while also setting strict guidelines about how funds can be used in relation to promoting these taxes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025HouseFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025HouseFloorActionReferred toTaxes
January 20, 2025SenateFloorActionReferred toTaxes
January 22, 2025HouseFloorActionAuthor added
January 22, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "New provisions for political subdivisions relating to tax imposition."
      ],
      "removed": [
        "Prohibition related to advertising or promoting referendum on local sales taxes."
      ],
      "summary": "The bill amends the authorization scope for local sales and use taxes under section 297A.99.",
      "modified": [
        "Adjustments to governance over local sales taxes, including preemption of special laws."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Specific requirements for taxpayer information dissemination."
      ],
      "removed": [],
      "summary": "The bill modifies additional rules pertaining to the imposition of local sales taxes.",
      "modified": [
        "Clarifications on permissible expenses related to conducting a referendum."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Obligations pertaining to itemized project cost listings."
      ],
      "summary": "Modification of existing rules concerning political subdivision sales taxes in section 297A.99.",
      "modified": [
        "Revised stipulations on conducting public forums for tax-related referendums."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 3"
  }
]

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