HF 3069

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/22/2023 08:13am

A bill for an act
relating to local sales and use taxes; creating an advisory task force to examine
the role of local taxes in local government funding; requiring a report.

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

Section 1. new text begin LOCAL TAXES ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Local Taxes Advisory Task Force is established.
The purpose of the task force is to examine the use of local taxes as a funding mechanism
for cities and counties to fund capital projects and other improvement projects.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members:
new text end

new text begin (1) three members of the house of representatives, two appointed by the speaker of the
house and one appointed by the minority leader of the house of representatives;
new text end

new text begin (2) three members of the senate, two appointed by the majority leader of the senate and
one appointed by the minority leader of the senate;
new text end

new text begin (3) the commissioner of revenue or the commissioner's designee;
new text end

new text begin (4) one member from the League of Minnesota Cities; and
new text end

new text begin (5) one member from the Association of Minnesota Counties.
new text end

new text begin (b) Appointments to the task force must be made no later than July 1, 2023.
new text end

new text begin Subd. 3. new text end

new text begin Meetings. new text end

new text begin (a) The commissioner of revenue shall convene the first meeting to
be held no later than July 15, 2023. The commissioner of revenue must convene all
subsequent meetings in a manner and frequency as prescribed by this subdivision.
new text end

new text begin (b) The task force shall meet twice monthly, at a time and space designated by the
commissioner of revenue. All meetings of the task force must be open to the public.
new text end

new text begin (c) After September 15, 2023, the commissioner of revenue may increase or decrease
the frequency of the meetings as necessary for the task force to accomplish the duties
specified in subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The task force shall examine the role of local taxes as a funding
mechanism for local governments and must determine:
new text end

new text begin (1) objective evaluation criteria for general local sales tax proposals, food and beverage
tax proposals, and lodging tax proposals seeking accommodations beyond the requirements
of Minnesota Statutes, section 469.190;
new text end

new text begin (2) the appropriate entity or entities to evaluate local tax proposals based on the
established criteria in an objective manner prior to legislation on these taxes being heard in
the legislative committees with jurisdiction over local sales taxes;
new text end

new text begin (3) the appropriate process for enacting special laws authorizing new or modifying
existing local taxes; and
new text end

new text begin (4) the necessary changes to current law to accommodate the determinations made
regarding clauses (1) to (3).
new text end

new text begin (b) The task force must make recommendations to the legislature regarding its
determinations from paragraph (a) in a report pursuant to subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Report; expiration. new text end

new text begin (a) The task force shall make recommendations regarding
the objectives specified in subdivision 4 in a report to the legislature. The commissioner of
revenue must draft and compile the report and send it to the legislative committees with
jurisdiction over local taxes no later than January 15, 2024. In the event that the members
of the task force do not agree on a final recommendation, the report shall indicate the
differing opinions and preferred recommendations of the members. The report may include
any additional information the task force deems relevant.
new text end

new text begin (b) The task force expires upon submission of its report.
new text end

new text begin (c) The legislative committees with jurisdiction over local taxes must hold a public
hearing on the report during the regular legislative session in the year in which the report
is submitted.
new text end

new text begin Subd. 6. new text end

new text begin Officer; support. new text end

new text begin The commissioner of revenue or the commissioner's designee
must act as the chair of the task force. The commissioner of revenue must provide
professional, technical, and administrative support to the task force.
new text end

new text begin Subd. 7. new text end

new text begin Expenses. new text end

new text begin The members of the task force shall be reimbursed for all travel
expenses actually and necessarily incurred in the performance of the members' duties in
accordance with policies adopted by the Legislative Coordinating Commission.
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