Subdivision 1.

Authorizationdeleted text begin ; scopedeleted text end .

(a) A political subdivision of this state may impose
a general sales taxnew text begin :
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(1)new text begin under section 297A.9901;
new text end

new text begin (2)new text end under section 297A.9915deleted text begin , (2)deleted text end new text begin ;
new text end

new text begin (3)new text end under section 297A.992deleted text begin , (3)deleted text end new text begin ;
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new text begin (4)new text end under section 297A.9925deleted text begin , (4)deleted text end new text begin ;
new text end

new text begin (5)new text end under section 297A.993deleted text begin , (5)deleted text end new text begin ;
new text end

new text begin (6)new text end if permitted by special lawdeleted text begin ,deleted text end new text begin ;new text end or

deleted text begin (6)deleted text end new text begin (7)new text end if the political subdivision enacted and imposed the tax before January 1, 1982,
and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997deleted text begin , ordeleted text end new text begin ;
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(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by referencedeleted text begin .deleted text end new text begin ; or
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new text begin (3) enacted before July 1, 2024.
new text end

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax and may only spend funds related to
imposing a local sales tax to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted under subdivision 2, but
only if the disseminated information includes a list of specific projects and the cost of each
individual project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

Subd. 3.

Legislative authority required before voter approval; requirements for
adoption, use, termination.

(a) A political subdivision must receive legislative authority
to impose a local sales tax before submitting the tax for approval by voters of the political
subdivision. Imposition of a local sales tax is subject to approval by voters of the political
subdivision at a general election. The election must be conducted at a general election within
the two-year period after the governing body of the political subdivision has received
authority to impose the tax. If the authorizing legislation allows the tax to be imposed for
more than one project, there must be a separate question approving the use of the tax revenue
for each project. Notwithstanding the authorizing legislation, a project that is not approved
by the voters may not be funded with the local sales tax revenue and the termination date
of the tax set in the authorizing legislation must be reduced proportionately based on the
share of that project's cost to the total costs of all projects included in the authorizing
legislation.

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).

(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

(e) deleted text begin Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.deleted text end new text begin Beginning January 1, 2025, the reporting requirements under
section 297A.9902 apply to taxes authorized under special law or the requirements of this
section.
new text end

(f) If a tax is terminated because sufficient revenues have been raised, any amount of
tax collected under subdivision 9, after sufficient revenues have been raised and before the
quarterly termination required under subdivision 12, paragraph (a), that is greater than the
average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin (g) Upon expiration of a tax authorized under this section or any other law, ordinance,
or city charter, the combined tax rate limit in section 297A.9901, subdivision 5, applies.
new text end

new text begin (h) If, after receiving voter approval, a political subdivision decides to cancel a project
approved by the voters, the political subdivision must notify the commissioner. The
commissioner must proportionately decrease the maximum amount of tax revenue the
political subdivision may collect and must adjust the termination of the tax accordingly. If
the political subdivision has already collected revenue for the canceled project, the political
subdivision must return the funds to the commissioner for deposit into the local sales tax
equalization distribution account.
new text end