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HF1755 (Legislative Session 94 (2025-2026))

Authority and requirements for local sales and use taxes modified.

Related bill: SF375

AI Generated Summary

This Minnesota House bill (H.F. No. 1755), authored by Representative Freiberg, proposes modifications to laws governing local sales and use taxes. The bill amends Minnesota Statutes 2024, Section 297A.99, and repeals Subdivision 3a of that section.

Key Provisions:

  1. Modification of Local Sales Tax Authority – The bill clarifies the conditions under which political subdivisions (such as cities or counties) can impose a local sales tax. Local governments may impose a general sales tax under specific provisions of state law, including those enacted before January 1, 1982, or permitted by special law.

  2. Preemption of Certain Special Laws – The bill reinforces that this section preempts special laws related to local sales taxes, except:

    • Those enacted before June 2, 1997.
    • Those that explicitly exempt themselves from the preemption rules.
    • Those enacted before July 1, 2025.

  3. Restrictions on Motor Vehicle Sales Taxes – The bill keeps in place a restriction that political subdivisions cannot impose a special excise tax on motor vehicles unless it is authorized under Section 297A.993.

  4. Limits on Local Tax Promotion Spending – The bill explicitly states that political subdivisions:

    • Cannot use public funds to promote a referendum that would impose a local sales tax.
    • Can use funds only for:
      • Conducting the referendum.
      • Sharing factual information about specific projects and their costs.
      • Conducting public forums where proponents and opponents are given equal time to speak.
      • Providing factual data on the proposed tax’s impact on consumer purchases.
      • Sharing details about the programs and projects that would be funded through the tax.

Purpose:

The changes aim to create more uniformity in local sales tax implementation, limit the ability of local governments to advocate for these taxes, and ensure voters receive transparent, factual information about tax proposals.

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Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provisions on expenditure related to referendums are clarified."
      ],
      "removed": [
        "Repeals subdivision 3a, affecting previous tax requirements."
      ],
      "summary": "This bill modifies the authority and requirements for local sales and use taxes under section 297A.99.",
      "modified": [
        "Updates the scope of the general sales tax authority for political subdivisions."
      ]
    },
    "citation": "297A.99"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of constraints on political subdivisions regarding advertising for referendums."
      ],
      "removed": [],
      "summary": "This section governs the imposition of a special excise tax on motor vehicles.",
      "modified": [
        "Conditions under which motor vehicle taxes can be imposed."
      ]
    },
    "citation": "297A.993"
  }
]

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