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, including the necessity for legislative authority before a local sales tax can be submitted for voter approval. The bill introduces new definitions and stipulations regarding the management of these taxes, including the requirement for voter approval, a maximum combined tax rate of one-half of one percent, and a maximum collection period of 30 years. It also mandates that the proceeds from the tax be dedicated exclusively to the approved projects and outlines the conditions under which the tax can be terminated.

Significant changes include the addition of new subdivisions that detail the requirements for imposing local sales taxes, such as conducting a regional analysis for certain projects and the stipulation that taxes must be imposed within 15 months of voter approval. The bill repeals a previous subdivision that allowed exceptions to the referendum process and eliminates the requirement for a separate election to approve bonds issued for funding projects. Additionally, it mandates annual financial reporting to the commissioner and establishes a local sales tax equalization distribution account. The bill emphasizes transparency and community involvement, requiring public hearings prior to seeking tax authority and detailing the process for voter approval, including specific ballot language and restrictions on political advertising.

Statutes affected:
Introduction: 297A.99