This bill amends Minnesota Statutes to allow cities and counties to impose local sales taxes specifically for funding capital projects such as community centers, convention centers, and parks. It establishes a framework for oversight, revenue sharing, and reporting requirements to ensure that the proceeds are dedicated to the approved projects. Key provisions include the necessity for voter approval before imposing a local sales tax, a mandate for the tax to terminate once sufficient revenue is raised, and a prohibition on using funds to promote the tax referendum. The bill introduces new subdivisions detailing the requirements for imposing local sales taxes, including legislative authority and voter approval, while repealing a previous subdivision that allowed certain exceptions for tax imposition.

Additionally, the bill streamlines the process for political subdivisions seeking to impose local sales taxes by eliminating the requirement for a separate election to approve bonds for project funding and mandating public hearings prior to seeking tax authority. It requires annual financial reporting to the commissioner, detailing the use of local sales tax proceeds, and establishes a framework for local sales tax equalization distributions. The bill also repeals a temporary moratorium on new local sales taxes, allowing new initiatives to proceed. Overall, the legislation aims to enhance transparency, community involvement, and accountability in the imposition of local sales taxes.

Statutes affected:
Introduction: 297A.99