This bill amends Minnesota Statutes concerning local sales and use taxes, granting political subdivisions the authority to impose local sales taxes for specified capital projects without needing prior legislative approval, provided these projects demonstrate regional significance. It mandates that revenues from these taxes be exclusively allocated for the construction and rehabilitation of capital projects that benefit regional populations. The bill also establishes requirements for public hearings and voter approval processes, ensuring community engagement before any local sales tax is implemented. Additionally, it introduces new definitions for various capital projects and sets criteria for political subdivisions to impose local sales taxes.

Furthermore, the bill repeals a previous statute that imposed a temporary moratorium on political subdivisions regarding new or modified local sales taxes until after May 31, 2025, thereby allowing for greater flexibility in tax imposition. It outlines the process for qualified recipients to receive distribution shares from contributors and mandates that the commissioner of revenue calculate and certify each political subdivision's contribution share based on prior year collections. The effective date for these changes is set for the day following final enactment, aiming to enhance transparency, accountability, and community involvement in the use of local sales tax revenues.

Statutes affected:
Introduction: 297A.99