or 
lines to the right of the URL bar at the top of your browser
Senate Taxes Committee Advances Omnibus Tax Bill
The Senate proposal includes property tax relief, local sales taxes, and a new tax on social media.
On April 30, the Senate Taxes Committee approved its omnibus tax bill, SF 5052. Sponsored by Sen. Ann Rest (DFL-New Hope), the bill now awaits further action in the Senate.
The bill includes several provisions of interest to cities, including:
- 37 local tax proposals (pdf).
- A $100 million one-time increase to the homestead property tax refund program.
- Modification to the local government aid formula (pdf) and one-time federal enforcement reimbursement aid.
- Property tax changes for agricultural homesteads and veterans.
- Technical updates to housing aids.
- Changes to tax increment financing (TIF) excess increments and special extensions for three TIF districts.
The bill also proposes a new tax on social media companies that collect data from Minnesotans, as well as a new tax on individuals convicted of fraud in state or federal court.
Of the 37 local tax proposals, 31 are for cities, five are for counties, and one is for a special taxing district. The Senate proposal for Hennepin County Medical Center is also included in the bill, which would increase the current Target Field ballpark tax from 0.1% to 0.25%.
Because tax bills must originate in the House of Representatives, the Senate cannot pass the bill off its floor until the House passes its own version. The House has not yet released an omnibus tax bill this session. With less than two weeks left in this session, it remains unclear whether a final tax bill will be agreed upon before adjournment.