SF 3562

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/12/2024 01:27pm

A bill for an act
relating to taxation; modifying the election requirements for imposition of a local
sales and use tax; amending Minnesota Statutes 2022, section 297A.99, subdivision
3.

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

Section 1.

Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:

Subd. 3.

Legislative authority required before voter approval; requirements for
adoption, use, termination.

(a) A political subdivision must receive legislative authority
to impose a local sales tax before submitting the tax for approval by voters of the political
subdivision. Imposition of a local sales tax is subject to approval by voters of the political
subdivision at a general new text begin or special new text end election. The new text begin general or special new text end election must be conducted
deleted text begin at a general election deleted text end new text begin on the first Tuesday after the first Monday in November new text end within the
two-year period after the governing body of the political subdivision has received authority
to impose the tax. If the authorizing legislation allows the tax to be imposed for more than
one project, there must be a separate question approving the use of the tax revenue for each
project. Notwithstanding the authorizing legislation, a project that is not approved by the
voters may not be funded with the local sales tax revenue and the termination date of the
tax set in the authorizing legislation must be reduced proportionately based on the share of
that project's cost to the total costs of all projects included in the authorizing legislation. new text begin
For purposes of this section, "general election" and "special election" have the meanings
given in section 200.02, except that a special election held under this section must be held
on the first Tuesday after the first Monday in November.
new text end

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).

(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

deleted text begin (e) Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end If a tax is terminated because sufficient revenues have been raised, any amount
of tax collected under subdivision 9, after sufficient revenues have been raised and before
the quarterly termination required under subdivision 12, paragraph (a), that is greater than
the average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for local sales and use tax
authorizations enacted after May 1, 2023.
new text end