HF 4949

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/16/2026 04:11 p.m.

A bill for an act
relating to taxation; establishing a sports and events reimbursement program;
requiring reports; amending Minnesota Statutes 2024, sections 168E.09, subdivision
2, by adding a subdivision; 290.62; 295.75, subdivision 11, by adding a subdivision;
295.81, by adding a subdivision; Minnesota Statutes 2025 Supplement, sections
295.81, subdivision 10; 297A.94; proposing coding for new law in Minnesota
Statutes, chapters 116J; 270C.

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

Section 1.

new text begin [116J.8753] SPORTS AND EVENTS REIMBURSEMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Account" means the sports and events reimbursement program account.
new text end

new text begin (c) "Event" means any of the following and includes any activity related to or associated
with the following:
new text end

new text begin (1) Amateur Athletic Union Junior Olympic Games;
new text end

new text begin (2) Big Ten football, men's or women's basketball, volleyball, wrestling, or other
conference tournament;
new text end

new text begin (3) Bowl Season;
new text end

new text begin (4) College Football Playoff;
new text end

new text begin (5) Confederation of North, Central America, and Caribbean Association Football
(CONCACAF) Gold Cup or other matches;
new text end

new text begin (6) Confederation Sudamericana de Football (CONMEBOL) Copa America;
new text end

new text begin (7) CrossFit Games;
new text end

new text begin (8) Federation of Gay Games;
new text end

new text begin (9) Formula 1 United States Grand Prix;
new text end

new text begin (10) International Ice Hockey Federation (IIHF) World Juniors, Men's, Women's, or any
tournament sanctioned by USA hockey or the IIHF;
new text end

new text begin (11) International Skating Union (ISU) Worlds;
new text end

new text begin (12) International Soccer Match;
new text end

new text begin (13) Laver Cup;
new text end

new text begin (14) Major League Baseball All-Star Game;
new text end

new text begin (15) Major League Soccer All-Star Game or other special events or matches;
new text end

new text begin (16) National Basketball Association All-Star Game, Cup, or Draft;
new text end

new text begin (17) National Collegiate Athletic Association's (NCAA) Men's or Women's Final Four
or preliminary round basketball tournament, Men's or Women's Frozen Four, Volleyball
Championship, Wrestling Championship, Gymnastics Championship, or any sanctioned
NCAA championship;
new text end

new text begin (18) National Football League Draft, Super Bowl, or combine;
new text end

new text begin (19) National Hockey League All-Star Game, Draft, Four Nations, Stadium Series,
Winter Classic, or World Cup of Hockey;
new text end

new text begin (20) Rugby World Cup Men's or Women's;
new text end

new text begin (21) Ultimate Fighting Championship;
new text end

new text begin (22) United States Figure Skating Championship;
new text end

new text begin (23) Unrivaled Event;
new text end

new text begin (24) United States Olympic Team Trials in gymnastics, swimming, and wrestling,
sanctioned by the national governing body, recognized by the United States Olympic
Committee;
new text end

new text begin (25) Women's National Basketball Association All-Star Game or Draft;
new text end

new text begin (26) World Cup Soccer Matches for Men's or Women's;
new text end

new text begin (27) World Wrestling Entertainment Summer Slam, Royal Rumbles, Survivor Series,
WrestleMania, TKO Takeover Weekend, or other premium live event;
new text end

new text begin (28) X Games; or
new text end

new text begin (29) Professional Golfers' Association (PGA) of America championship-level events
for Men's or Women's.
new text end

new text begin (d) "Program" means the sports and events reimbursement program.
new text end

new text begin (e) "Local organizing committee" means a body with a demonstrated track record of
attracting high-profile events to Minnesota that is responsible for the promotion and execution
of an event.
new text end

new text begin (f) "Site selection organization" means an organization that has the ability to enter into
a contract for an event listed in paragraph (c) with a local organizing committee.
new text end

new text begin Subd. 2. new text end

new text begin Sports and events reimbursement program account. new text end

new text begin The sports and events
reimbursement program account is created in the special revenue fund in the state treasury.
Except as otherwise appropriated by law, money in the account is appropriated to the
commissioner of revenue for the purposes of this section. All money earned by the account
must be credited to the account and remain available until expended.
new text end

new text begin Subd. 3. new text end

new text begin Events eligible for funding. new text end

new text begin (a) Only an event listed in subdivision 1, paragraph
(c), is eligible for funding under this section.
new text end

new text begin (b) A listed event may receive funding through the program only if:
new text end

new text begin (1) a site selection organization, after considering one or more sites not in this state,
selects a site in this state for the event to be held:
new text end

new text begin (i) one time; or
new text end

new text begin (ii) if the event is scheduled under an event contract or event support contract to be held
each year for a period of years, one time in each year;
new text end

new text begin (2) a site selection organization selects a site in this state as:
new text end

new text begin (i) the sole site for the event; or
new text end

new text begin (ii) the sole site for the event in a region composed of this state and one or more adjoining
states; and
new text end

new text begin (3) the event is held not more than one time in any year.
new text end

new text begin Subd. 4. new text end

new text begin Administration of program. new text end

new text begin (a) Prior to any determination under section
270C.45, subdivision 2, a local organizing committee must submit an application to the
commissioner of revenue. Applications must be submitted in the form and manner provided
by the commissioner of revenue but must include:
new text end

new text begin (1) a certification that the event meets the eligibility requirements for funding under
subdivision 3 and all other funding requirements under this section; and
new text end

new text begin (2) documentation from a site selection organization selecting the site for the event.
new text end

new text begin (b) The commissioner must conduct due diligence in administering the program, including
contracting with professionals as needed to assist in the due diligence.
new text end

new text begin Subd. 5. new text end

new text begin Allowable expenses. new text end

new text begin Money in the account may be used to fulfill obligations
of the state to a local organizing committee under an event contract including the payment
of:
new text end

new text begin (1) the costs relating to the preparations necessary or desirable for conducting the event;
and
new text end

new text begin (2) the costs of conducting the event, including the costs of an improvement or renovation
to an existing facility and the costs of the acquisition or construction of a new facility or
other facility.
new text end

new text begin Subd. 6. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of revenue may adopt rules necessary to
implement this section.
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin (a) A local organizing committee must provide the following
information to the commissioner of revenue:
new text end

new text begin (1) annual audited statements of any financial records required by a site selection
organization; and
new text end

new text begin (2) data obtained by the local organizing committee relating to:
new text end

new text begin (i) attendance at the event, including an estimate of the number of people expected to
attend the event who are not residents of Minnesota; and
new text end

new text begin (ii) the economic impact of the event.
new text end

new text begin (b) A local organizing committee must provide an annual audited financial statement
required by the commissioner of revenue no later than the end of the fourth month after the
last day of the period covered by the financial statement.
new text end

new text begin (c) After the conclusion of an event, a local organizing committee must provide
information about the event, such as attendance figures, including an estimate of the number
of people who attended the event who are not residents of Minnesota, financial information,
or other public information held by the committee as requested by the commissioner of
revenue.
new text end

Sec. 2.

Minnesota Statutes 2024, section 168E.09, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin After deposits under subdivision 1, the commissioner must deposit the share of
revenues of the taxes imposed under this chapter that are directly attributable to an event
in the amount determined under section 270C.45 to the sports and events reimbursement
program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 3.

Minnesota Statutes 2024, section 168E.09, subdivision 2, is amended to read:

Subd. 2.

Deposits.

After deposits under deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and 1a new text end , the
commissioner must deposit the balance of proceeds from the retail delivery fee in the
transportation advancement account under section 174.49.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 4.

new text begin [270C.45] CALCULATION AND DEPOSIT OF REVENUES TO THE
SPORTS AND EVENTS REIMBURSEMENT PROGRAM ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Event" has the meaning given in section 116J.8753, subdivision 1, paragraph (c).
new text end

new text begin (c) "Local organizing committee" has the meaning given in section 116J.8753, subdivision
1, paragraph (e).
new text end

new text begin (d) "Site selection organization" has the meaning given in section 116J.7853, subdivision
1, paragraph (f).
new text end

new text begin (e) "University" means the University of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Determination of incremental increase in certain tax receipts. new text end

new text begin (a) Following
each event, a local organizing committee must request a determination of the incremental
increase in tax revenues in the market area directly attributable to the event. The request
must be submitted to the university in the form and manner prescribed by the university
and the commissioner.
new text end

new text begin (b) Within ten days of the conclusion of an event, the university must commence an
estimate of the incremental increase in tax revenues listed in paragraph (c) that the university
determines are directly attributable to the preparation for and presentation of an event for
a one-year period that begins two months before the date on which the event will begin.
The university must use the information submitted by the local organizing committee under
paragraph (a) for each event.
new text end

new text begin (c) Revenues from the following taxes must be included in the determination of
incremental increase under paragraph (b):
new text end

new text begin (1) notwithstanding section 297A.61, subdivision 4, the tax imposed under section
297A.62, subdivision 1;
new text end

new text begin (2) the taxes imposed under section 297A.64, subdivisions 1 and 2;
new text end

new text begin (3) the tax imposed under section 295.75;
new text end

new text begin (4) the tax imposed under section 295.81;
new text end

new text begin (5) the fee imposed under section 168E.03; and
new text end

new text begin (6) the taxes imposed under sections 290.02 and 290.03.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin Within 30 days after the determination of incremental
increase in the tax revenues under subdivision 2, paragraph (b), the commissioner must
disburse the amount of the incremental increase to the local organizing committee for the
purposes enumerated in section 116J.8753, subdivision 5. The commissioner of employment
and economic development must not make any disbursement to an entity other than the
local organizing committee that requested a determination of incremental increase for an
event under subdivision 2, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ........
new text end

Sec. 5.

Minnesota Statutes 2024, section 290.62, is amended to read:

290.62 DISTRIBUTION OF REVENUES.

new text begin Subdivision 1. new text end

new text begin Deposit of revenues; general fund; refunds. new text end

new text begin Except as provided in
subdivision 2, new text end all revenues derived from the taxes, interest, penalties and charges under this
chapter shall, notwithstanding any other provisions of law, be paid into the state treasury
and credited to the general fund, and be distributed as follows:

(1) There shall, notwithstanding any other provision of the law, be paid from this general
fund all refunds of taxes erroneously collected from taxpayers under this chapter as provided
herein;

(2) There is hereby appropriated to the persons entitled to payment herein, from the fund
or account in the state treasury to which the money was credited, an amount sufficient to
make the refund and payment.

new text begin Subd. 2. new text end

new text begin Deposit of revenues; sports and events reimbursement program. new text end

new text begin The
commissioner must deposit the share of revenues of the taxes imposed under this chapter
that are directly attributable to an event in the amount determined under section 270C.45
to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected in taxable years
beginning after ........
new text end

Sec. 6.

Minnesota Statutes 2024, section 295.75, subdivision 11, is amended to read:

Subd. 11.

Deposit of revenues new text begin ; sports and events reimbursement program
account new text end .

new text begin Except as provided in subdivision 11a, new text end the commissioner shall deposit all revenues,
including penalties and interest, derived from the tax imposed by this section in the general
fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 7.

Minnesota Statutes 2024, section 295.75, is amended by adding a subdivision to
read:

new text begin Subd. 11a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 8.

Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10, is amended
to read:

Subd. 10.

Deposit of revenues; account established.

new text begin Except as provided in subdivision
10a, new text end the commissioner must deposit the revenues, including penalties and interest, derived
from the tax imposed by this section in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 9.

Minnesota Statutes 2024, section 295.81, is amended by adding a subdivision to
read:

new text begin Subd. 10a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after ........
new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) Each month the commissioner must deposit an amount equal to the estimated revenues
derived from the taxes imposed under section 297A.62, subdivision 1, on the sale and
purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) a percentage to the highway user tax distribution fund as follows:

(i) 43.5 percent in each of fiscal years 2024 and 2025;

(ii) 43 percent in fiscal year 2026;

(iii) 41 percent in fiscal year 2027;

(iv) 36 percent in fiscal year 2028;

(v) 30 percent in fiscal year 2029;

(vi) 36 percent in each of fiscal years 2030 to 2034;

(vii) 38.5 percent in fiscal year 2035;

(viii) 41 percent in fiscal year 2036; and

(ix) 43.5 percent in fiscal year 2037 and thereafter;

(2) a percentage to the transportation advancement account under section 174.49 as
follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

After each February forecast, and prior to the following April 15, the commissioner shall
estimate the monthly deposit amount for use in the following fiscal year based on the estimate
of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
on the sale and purchase of motor vehicle repair and replacement parts from the department's
three most recent consumption tax models. For purposes of this paragraph, "motor vehicle"
has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
on highway vehicles, if wholly or partially made of rubber and if marked according to
federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in
section 103B.101, subdivision 19.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in a regional parks and trails account
in the natural resources fund and may only be spent for parks and trails of regional
significance outside of the seven-county metropolitan area under section 85.535, based on
recommendations from the Greater Minnesota Regional Parks and Trails Commission under
section 85.536.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in an outdoor recreational
opportunities for underserved communities account in the natural resources fund and may
only be spent on projects and activities that connect diverse and underserved Minnesotans
through expanding cultural environmental experiences, exploration of their environment,
and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

new text begin (m) The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

deleted text begin (m) deleted text end new text begin (n) new text end The revenues deposited under paragraphs (a) to deleted text begin (l) deleted text end new text begin (m) new text end do not include the
revenues, including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue collected for sales and
purchases made after ........
new text end