This bill amends Minnesota Statutes regarding sales and use taxation, specifically addressing the collection of tourism improvement district charges by businesses. It modifies the definition of "sales price" to include service charges imposed under section 428B.03, provided that the business collects this charge from the purchaser. Additionally, it clarifies that the sales price does not include taxes that are legally imposed directly on the consumer and separately stated on the invoice. The bill also establishes that businesses may collect the service charge from purchasers, as long as it is clearly itemized on the receipt or invoice.

Furthermore, the bill outlines that municipalities can impose service charges on businesses within tourism improvement districts to fund activities and improvements that benefit those businesses. It allows for flexibility in how these service charges are calculated, whether as a percentage of gross revenue or a fixed amount per transaction. The effective date for these changes is retroactively set for sales and purchases made after June 30, 2025, and for the service charge provisions, it is effective from July 1, 2025.

Statutes affected:
Introduction: 297A.61, 428B.02