Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.9915, (2) under section 297A.992, (3) under
section 297A.9925, (4) under section 297A.993, (5) if permitted by special law, or (6) 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
new text end

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).new text begin The political
subdivision must not commingle revenue from a tax for a project or projects approved by
the voters under this section with revenue from a tax authorized under section 297A.9901
or any other law, ordinance, city charter, or other provision, including an extension of or
modification to the uses of a tax for a different project.
new text end

(c)new text begin The political subdivision imposing the tax must notify the commissioner and the
state auditor at least 60 days before the date the political subdivision anticipates that revenues
raised from the tax are sufficient to fund the projects approved by the voters under paragraph
(a). The notification applies to each authorization of a tax and each project approved by the
voters under paragraph (a), regardless of whether the legislature has authorized the tax
notwithstanding the requirements of paragraph (d).new text end The tax must terminate after the revenues
raised are sufficient to fund the projects approved by the voters under paragraph (a).new text begin The
political subdivision must notify the commissioner and the state auditor within 30 days of
the date that sufficient revenues have been raised to fund the projects approved by the voters
under paragraph (a).
new text end

(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 ....., the reporting requirements under section
297A.9902 apply to taxes authorized under special law or the requirements of section
297A.99.
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) The total tax rate imposed by a political subdivision under this section and section
297A.9901 must not exceed one percent, except that this limit does not apply to taxes
authorized under this section or any other law, ordinance, or city charter before June 1,
2023. Upon expiration of a tax authorized under this section or any other law, ordinance,
or city charter, the limit in this paragraph applies. If a local sales tax is imposed by a county,
the limit under this paragraph includes any tax authorized under section 297A.993.
new text end