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 oversight mechanisms that require voter approval and mandates that tax proceeds be dedicated solely to the approved projects. Key changes include new subdivisions that outline requirements for imposing local sales taxes, such as conducting a detailed analysis of existing facilities and ensuring equitable treatment of residents and non-residents regarding fees. The bill also introduces provisions for public hearings prior to tax imposition, requiring at least 30 days' notice and detailed information about the proposed tax and projects.

Additionally, the legislation mandates annual financial reporting by political subdivisions that impose local sales taxes, with the commissioner having the authority to verify compliance. If a subdivision fails to meet reporting requirements or misuses tax proceeds, the commissioner must notify the governing body, which has 60 days to respond with corrective measures. The bill also establishes a framework for local sales tax equalization distributions, defining terms related to tax capacity and distribution pools, and repeals a temporary moratorium on new local sales taxes. Overall, the legislation aims to enhance transparency, accountability, and community engagement in the imposition of local sales taxes for significant projects.

Statutes affected:
Introduction: 297A.99