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 requiring legislative approval, as long as they can demonstrate regional significance. It clarifies that these taxes must be allocated for the construction and rehabilitation of projects that benefit a wider regional population and establishes requirements for public hearings and voter approval processes. The bill introduces new definitions for various capital projects, such as convention centers and regional sports complexes, and mandates that local sales tax revenues be exclusively dedicated to these approved projects.

Additionally, the bill requires public hearings to gather community input before proposing a local sales tax, with specific guidelines for the timing and notification of these hearings. It stipulates that voter approval is necessary for the imposition of a local sales tax, detailing the requirements for ballot language and project descriptions. The legislation also outlines the administration and termination of the tax, including notification to the commissioner and restrictions on new taxes after an existing tax expires. Furthermore, it repeals a temporary moratorium on the imposition or modification of local sales taxes, which was set to end on June 1, 2025, allowing political subdivisions to proceed with tax-related activities immediately following the bill's enactment.

Statutes affected:
Introduction: 297A.99