Minnesota 2023-2024 Regular Session

Minnesota House Bill HF5336

Introduced
4/9/24  

Caption

Cities and counties authorized to impose local sales taxes for certain projects, local sales tax equalization distribution established, state auditor oversight provided, and money appropriated.

Impact

The introduction of HF5336 is positioned to impact local governance significantly by giving municipalities the ability to fund essential projects without relying solely on state or federal funding. This is particularly important for regions that may lack sufficient economic resources to support large capital projects such as convention centers, parks, or libraries. The framework stipulated by the bill ensures that local decisions regarding tax imposition are backed by democratic processes, reinforcing accountability to the taxpayers.

Summary

House File 5336 authorizes cities and counties in Minnesota to impose local sales taxes for specific capital projects. The bill establishes a framework under which local governments can propose these taxes, necessitating voter approval and oversight by the state auditor. The legislation aims to provide financial support for projects deemed necessary for communities, thereby enhancing infrastructure and developmental opportunities at the local level.

Contention

One of the notable points of contention around HF5336 revolves around the dynamics of local governance versus state oversight. Critics may argue that while local tax authority can empower municipalities, it could also lead to inequalities where wealthier areas could potentially fund more extensive projects compared to disadvantaged areas. Furthermore, the necessity for legislative approval for certain aspects of tax imposition could be seen as an impediment to local autonomy, sparking debates over the balance of control between local and state government.

Companion Bills

No companion bills found.

Previously Filed As

MN HF5335

Cities and counties authorized to impose local sales taxes for certain projects, local sales tax equalization distribution established, state auditor oversight provided, and money appropriated.

MN HF3027

Cities and counties authorized to impose local sales taxes for certain projects, oversight provided, revenue sharing required, report required, and money appropriated.

MN HF2839

Local sales and use tax provisions modified, and cities allowed to impose local sales tax if certain criteria are met.

MN SF3180

Cities permission to impose a local sales tax if certain criteria are met

MN SF5424

Local sales and use taxes enactment requirements modifications and appropriation

MN HF2979

Local sales and use tax provisions modified, local resolution submission and referendum requirements for imposing new local sales tax or modifying existing local sales tax clarified, and nexus requirement between nonresidents and project to be funded imposed.

MN HF3525

Caledonia; local sales and use tax imposition authorized, and temporary moratorium on local governments pursuing local sales and use taxes repealed.

MN HF828

Rochester; local sales and use tax provisions modified, and local sales tax authorization extended for additional projects.

MN HF3229

Rockville; sales and use tax provisions modified, and local sales tax imposition authorized.

MN HF1847

Richfield; local sales and use tax imposition authorized for specified projects.

Similar Bills

MN HF5335

Cities and counties authorized to impose local sales taxes for certain projects, local sales tax equalization distribution established, state auditor oversight provided, and money appropriated.

MN HF3027

Cities and counties authorized to impose local sales taxes for certain projects, oversight provided, revenue sharing required, report required, and money appropriated.

MN SF375

Authority and requirements modification for local sales and use taxes

MN HF1755

Authority and requirements for local sales and use taxes modified.

MN HF5247

Taxation and state government operations; various provisions modified, and money appropriated.

MN SF2255

Omnibus E-12 Education appropriations

MN SF5234

Omnibus Tax bill

MN HF5070

Regional transportation sales and use tax repealed, metropolitan region sales and use tax repealed, local affordable housing aid repealed, retail delivery fee repealed, and use of amounts in repealed accounts provided.