This bill amends Minnesota Statutes concerning local sales and use taxes, granting political subdivisions the authority to impose local sales taxes for specific capital projects without needing prior legislative approval, provided these projects demonstrate regional significance. It clarifies that local sales taxes can only be utilized for the construction and rehabilitation of projects that benefit a broader regional population. The bill also introduces new requirements for public hearings and voter approval processes, mandating that public hearings occur after 6:00 p.m. and that political subdivisions provide contact information for public inquiries. A resolution detailing the proposed tax rate and project descriptions must be adopted following the public hearing, and voter approval is required with specific ballot language.

Additionally, the bill establishes guidelines for the administration and termination of the local sales tax, ensuring that proceeds are exclusively allocated to approved projects and that any excess revenue is returned to the general fund. It introduces new definitions related to local sales taxes and outlines the distribution process among political subdivisions, including the requirement for a resolution supporting the proposed tax from qualified recipients. The bill also repeals a previous statute that imposed a temporary moratorium on new local sales taxes or modifications, allowing political subdivisions to proceed without restrictions. The effective date for these changes is the day following final enactment.

Statutes affected:
Introduction: 297A.99