This bill allows cities and counties in Minnesota to impose local sales taxes for specific capital projects, including convention centers, libraries, parks, sports complexes, and trails. It establishes a framework for the distribution of local sales tax revenues and mandates oversight by the state auditor. Key amendments include the addition of a new subdivision to Minnesota Statutes 2022, section 297A.99, which clarifies that these provisions apply only to taxes enacted by special law and outlines the process for amending or extending such taxes. The bill also repeals a previous subdivision that permitted certain political subdivisions to impose local sales taxes without a referendum under specific conditions.

Additionally, the bill introduces new requirements for community support and documentation to be submitted to the state auditor, ensuring that local sales tax revenues are exclusively dedicated to approved projects and that any unspent funds are returned to the state. It stipulates that projects not approved by voters cannot be funded with tax revenue and restricts political subdivisions from using funds to promote a referendum, allowing expenditures only for conducting the referendum and providing information. The bill also requires legislative approval for taxes that do not meet specified criteria and establishes filing and reporting obligations for political subdivisions. It creates a local sales tax equalization distribution account and repeals a temporary moratorium on local sales tax activities, appropriating funds to the state auditor for implementation.

Statutes affected:
Introduction: 297A.99