SF 2229

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2021 08:27am

A bill for an act
relating to taxation; sales and use; modifying requirements for legislative approval
of local sales taxes; amending Minnesota Statutes 2020, section 297A.99,
subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2020, section 297A.99, subdivision 1, is amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted
by special law, or (4) if the political subdivision enacted and imposed the tax before January
1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax deleted text begin and deleted text end new text begin . new text end

new text begin (e) A political subdivision new text end may only spend funds related to imposing a local sales tax
to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted new text begin and submitted new text end under
subdivision 2, new text begin any amended resolution allowed under subdivision 2, paragraph (d), or any
amended resolution adopted only to reflect authority enacted in special legislation that does
not allow funding for all projects listed in the submitted resolution, new text end but only if the
disseminated information includes a list of specific projects and the cost of each individual
project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local sales tax proposals submitted
for approval after the day of final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, 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. new text begin The
resolution must be adopted no more than 60 days before the date the political subdivision
submits the resolution and underlying documentation required under paragraph (b). new text end 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 jurisdiction;

(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.

new text begin (d) A political subdivision may not submit an amended resolution after January 31 of
the year in which the jurisdiction is seeking a special law authorizing the tax, except to do
any of the following:
new text end

new text begin (1) remove a project from the list of projects that will be funded with revenue from the
tax;
new text end

new text begin (2) reduce the amount that will be used for any project;
new text end

new text begin (3) reduce the total revenue raised for all projects before the tax expires;
new text end

new text begin (4) reduce the estimated length of time that the tax will be in effect if all proposed projects
are funded; and
new text end

new text begin (5) increase the amount that will be used for any project, increase the total revenue raised
for all projects before the tax expires, and increase the estimated length of time that the tax
will be in effect if all proposed projects are funded, but only if the political subdivision also
submits documentation that the amended resolution is based on new information not available
at the time the original resolution was submitted.
new text end

new text begin (e) For purposes of this section, a "capital project" or "project" includes:
new text end

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

new text begin (2) improvements within a single park or named recreation area;
new text end

new text begin (3) a contiguous trail;
new text end

new text begin (4) a contiguous segment of roadway, or two or more contiguous segments of roadway
provided that all segments of the roadway are listed, and includes city infrastructure beneath
the roadway provided the infrastructure is explicitly listed; or
new text end

new text begin (5) a sanitary sewer, storm sewer, or water project in a contiguous geographic area served
by the project that is specifically described in the resolution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local sales tax proposals submitted
for approval after the day of final enactment.
new text end