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HF 2813

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 12:49pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/09/2023

Current Version - as introduced

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A bill for an act
relating to taxation; local sales and use; exempting certain projects from the regional
significance requirement for cities with a population under 5,000; amending
Minnesota Statutes 2022, section 297A.99, subdivisions 1a, 2.

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

Section 1.

Minnesota Statutes 2022, section 297A.99, subdivision 1a, is amended to read:


Subd. 1a.

Requirements.

new text begin (a) new text end Local sales taxes are to be used instead of traditional local
revenues only for construction and rehabilitation of capital projects when a clear regional
benefit beyond the taxing jurisdiction can be demonstrated. Use of local sales tax revenues
for local projects decreases the benefits to taxpayers of the deductibility of local property
taxes and the state assistance provided through the property tax refund system and increases
the fiscal inequities between similar communities.

new text begin (b) The requirement to demonstrate a clear regional benefit beyond the taxing jurisdiction
does not apply to the construction, reconstruction, rehabilitation, or renovation of police
stations, fire stations, and ambulance facilities when the taxing jurisdiction is a city with a
population under 5,000.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 297A.99, subdivision 2, is amended to read:


Subd. 2.

Local resolution before application for authority.

(a) Before the governing
body of a political subdivision requests legislative approval to impose a local sales tax
authorized by a special law, it shall adopt a resolution indicating its approval of the tax. The
resolution must include the following information:

(1) the proposed tax rate;

(2) a detailed description of no more than five capital projects that will be funded with
revenue from the tax;

(3) documentation of the regional significance of each project, including the share of
the economic benefit to or use of each project by persons residing, or businesses located,
outside of the jurisdictionnew text begin , unless the taxing jurisdiction is a city with a population under
5,000 and the capital project to be funded is a police station, fire station, or ambulance
facility
new text end ;

(4) the amount of local sales tax revenue that would be used for each project and the
estimated time needed to raise that amount of revenue; and

(5) the total revenue that will be raised for all projects before the tax expires, and the
estimated length of time that the tax will be in effect if all proposed projects are funded.

(b) The jurisdiction seeking authority to impose a local sales tax by special law must
submit the resolution in paragraph (a) along with underlying documentation indicating how
the benefits under paragraph (a), clause (3), were determined, to the chairs and ranking
minority members of the legislative committees with jurisdiction over taxes no later than
January 31 of the year in which the jurisdiction is seeking a special law authorizing the tax.

(c) The special legislation granting local sales tax authority is not required to allow
funding for all projects listed in the resolution with the revenue from the local sales tax, but
must not include any projects not contained in the resolution.

(d) For purposes of this section, a "capital project" or "project" means:

(1) a single building or structure including associated infrastructure needed to safely
access or use the building or structure;

(2) improvements within a single park or named recreation area; or

(3) a contiguous trail.

new text begin EFFECTIVE DATE. new text end

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