Considering a Local Sales Tax in 2020? Use This New Tool

The League has worked with legislative staff and the Minnesota Department of Revenue to draft a model resolution.
(Published Jan 6, 2020)

If your city is considering a local sales tax during the 2020 legislative session, keep in mind the statutory process was changed in the 2019 omnibus tax bill.

The League has worked with the legislative staff and the Minnesota Department of Revenue to develop a template resolution that fulfills the requirements of the new law.

—Download the model resolution (doc)

Changes in the process

One of the most significant changes is a requirement that local governments must receive legislative authorization before conducting a referendum at a general election.

Under the new process, cities must submit specific information related to their request to the chairs of the House and Senate Taxes committees as well as the minority party committee leads by Jan. 31 of the year in which the city is seeking legislation authorizing the tax. Cities will also need to work with their legislators to have bills drafted and introduced.

Information cities must provide

The information submitted to the tax committee chairs must include a council-adopted resolution proposing the tax and stating:

  • The proposed tax rate.
  • A detailed description of no more than five capital projects to be funded by the tax.
  • Documentation of the regional significance of each project, including the benefits to nonlocal people and businesses.
  • The amount of revenue to be raised for each project and the estimated time to raise that amount.
  • The total to be raised for all projects and the anticipated expiration date for the tax.

Read more about the new process in a previous Cities Bulletin article.

Read the current issue of the Cities Bulletin

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