HF4780

Purpose

Establishes a Task Force on Housing Taxes and Fees to study how state, county, and local taxes, fees, and exactions affect the cost of developing and preserving housing in Minnesota. The goal is to identify ways to reduce the cost burden of housing taxes and fees while still supporting essential public services.

Key Provisions

• Create the Task Force on Housing Taxes and Fees to inventory and analyze housing-related taxes and fees and their impact on housing costs.
• Require a final report with findings and recommendations by February 15, 2027 to the chairs and ranking minority members of the legislative committees with jurisdiction over housing and taxes.
• Task force statutes and activities are subject to the Open Meeting Law (Minnesota Statutes, chapter 13D).
• Task force expires the day after it submits its required report.

Task Force Structure and Membership

• The task force will have 15 members.
• Composition includes:
  • Two members of the House (one appointed by the Speaker, one by the minority leader)
  • Two members of the Senate (one appointed by the majority leader, one by the minority leader)
  • The Commissioner of Revenue or a designee
  • The Commissioner of the Minnesota Housing Finance Agency or a designee
  • One member representing the Association of Minnesota Counties
  • One member representing the League of Minnesota Cities
  • One member representing the Builders Association of Minnesota
  • One member representing the Minnesota Realtors
  • One member representing a nonprofit affordable housing developer
  • One member representing a Tribal government
  • Three members of the public with expertise in municipal finance or housing policy
• Appointments must be made by July 1, 2026.

Duties and Activities

• Inventory all current state and local taxes and fees imposed on the development of new housing. This includes, but is not limited to, building permit fees, park dedication fees, and infrastructure impact fees.
• Analyze the cumulative effect of these taxes and fees on the final market price of housing.
• Evaluate how housing-related taxes are allocated among state, county, and local governments.
• Develop recommendations for legislative or administrative changes to reduce the cost burden of taxes and fees on housing while preserving essential public services.

Administration and Meetings

• The Legislative Coordinating Commission will provide staff and administrative support to the task force.
• Meetings are subject to the Open Meeting Law (Minnesota Statutes chapter 13D), ensuring transparency.

Reporting and Expiration

• A final report with findings and recommendations is due by February 15, 2027.
• The task force expires the day after it submits the required report.

Significance and Potential Impact

• This bill aims to quantify and reduce the cost barriers created by various housing taxes and fees.
• It seeks to provide data-driven recommendations to lawmakers on how to balance affordable housing development with funding for public services.

Relevant Terms Task Force on Housing Taxes and Fees; housing taxes and fees; inventory; building permit fees; park dedication fees; infrastructure impact fees; final market price of housing; cost burden; housing development and preservation; state; county; local governments; Legislative Coordinating Commission; Minnesota Statutes chapter 13D; open meetings; report; appointments; tribal government; nonprofit affordable housing developer; housing policy; municipal finance.