The bill modifies local sales and use tax authorizations in Minnesota to provide temporary authority for political subdivisions to address inflation-related increases in construction costs for projects funded by local sales taxes. Specifically, it allows these subdivisions, which received authority to impose a local sales and use tax in 2021 and obtained voter approval, to increase the aggregate amount authorized for financing projects by up to 25 percent, extend the duration of the tax, and extend the maturity date of any related bonds beyond the standard 30-year limit.

Additionally, the bill stipulates that the governing body of a political subdivision must adopt a resolution to approve these increases and submit it to the state auditor by September 1, 2023. Importantly, it clarifies that no additional referendum is required for these changes. The provisions of this bill will take effect the day after it is enacted.