1.1 	A bill for an act
1.2 	relating to taxation; local sales and use; authorizing Hennepin County to impose 
1.3 	a local sales tax;proposing coding for new law in Minnesota Statutes, chapter 
1.4 	297A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [297A.9945] HENNEPIN COUNTY SALES TAX.
1.7 		Subdivision 1.Sales tax imposed. (a) Notwithstanding section 477A.016, Hennepin 
1.8 	County may impose a sales and use tax of up to one percent for the purposes specified in 
1.9 	subdivision 2. The tax imposed under this subdivision is in addition to any local sales and 
1.10 	use tax imposed under any other special law or statute.
1.11 	(b) The county may, by resolution, adjust the tax rate so that the tax imposed produces 
1.12 	revenue sufficient to finance the purposes described in subdivision 2.
1.13 		Subd. 2.Use of revenue. (a) The county must distribute the money collected by the tax 
1.14 	imposed under this section to the board of directors of an eligible health care facility in 
1.15 	Hennepin County. The board of directors must use the money only for the following 
1.16 	purposes:
1.17 	(1) development, construction, improvement, and equipping of the health care facility;
1.18 	(2) construction or renovation of public infrastructure to facilitate the development and 
1.19 	use of the health care facility;
1.20 	(3) accumulation of reserves for capital improvements;
1.21 	(4) reimbursement of uncompensated care provided in the health care facility;
2.1 	(5) operating expenses of the health care facility; and
2.2 	(6) the payment of the costs of issuing and financing any bonds issued pursuant to 
2.3 	subdivision 3.
2.4 	(b) For purposes of this section, "eligible health care facility" means a nonstate 
2.5 	government teaching hospital with high medical assistance utilization and a level 1 trauma 
2.6 	center located in Hennepin County.
2.7 		Subd. 3.Bonding authority. The county may, by resolution, authorize, sell, and issue 
2.8 	bonds under chapter 475 to finance all or a portion of the costs authorized in subdivision 
2.9 	2. The county may, by resolution, issue bonds to refund any bonds previously issued for 
2.10 	the same purposes. The bonds may be limited obligations, payable solely from or secured 
2.11 	by taxes levied under this section and any other revenues available to the county. The county 
2.12 	may also pledge its full faith, credit, and taxing power as additional security for the bonds. 
2.13 	An election to approve the bonds under section 475.58 is not required. The bonds are not 
2.14 	included in computing any debt limitation applicable to the county.
2.15 		Subd. 4.Administration; collection; enforcement. The provisions of section 297A.99, 
2.16 	subdivisions 4 and 6 to 12a, govern the administration, collection, and enforcement of the 
2.17 	tax imposed under this section.

2.18 	EFFECTIVE DATE. This section is effective the day following final enactment and 
2.19 	applies to sales and purchases made after September 30, 2026.