HF 3647

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/21/2022 02:50pm

A bill for an act
relating to taxation; local sales and use; removing the requirement that legislative
authority is granted prior to submitting the tax for approval by voters; amending
Minnesota Statutes 2020, section 297A.99, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 297A.99, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Legislative authority required before voter approval; deleted text end Requirements for
adoption, use, termination.

(a) deleted text begin A political subdivision must receive legislative authority
to impose a local sales tax before submitting the tax for approval by voters of the political
subdivision. deleted text end Imposition of a local sales tax is subject to approval by voters of the political
subdivision at a general election. deleted text begin The election must be conducted at a general election within
the two-year period after the governing body of the political subdivision has received
authority to impose the tax. deleted text end new text begin The election must be conducted before the governing body of
the political subdivision requests legislative approval of the tax. new text end If the deleted text begin authorizing legislation
allows deleted text end new text begin voters approve new text end the tax to be imposed for more than one project, there must be a
separate question approving the use of the tax revenue for each project. deleted text begin Notwithstanding
the authorizing legislation, deleted text end A project that is not approved by the voters may not be funded
with the local sales tax revenue and the termination date of the tax set in the authorizing
legislation must be reduced proportionately based on the share of that project's cost to the
total costs of all projects included in the authorizing legislation.

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).

(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

deleted text begin (e) Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end If a tax is terminated because sufficient revenues have been raised, any amount
of tax collected under subdivision 9, after sufficient revenues have been raised and before
the quarterly termination required under subdivision 12, paragraph (a), that is greater than
the average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end