Bill Text: MN HF336 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Cities allowed to impose local sales and use tax, and aid offset provided.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-02-09 - Referred by Chair to Property and Local Tax Division [HF336 Detail]
Download: Minnesota-2011-HF336-Introduced.html
1.2relating to taxation; allowing all cities to impose a local sales and use tax;
1.3providing for an aid offset;amending Minnesota Statutes 2010, sections 297A.99,
1.4subdivision 1; 477A.013, by adding a subdivision; 477A.016; proposing coding
1.5for new law in Minnesota Statutes, chapter 297A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to
1.8read:
1.9 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
1.10impose a general sales tax (1) under section297A.992 , (2) under section
297A.993 , (3)
1.11under section 297A.994, (4) if permitted by special law enacted prior to May 20, 2008, or
1.12(4) (5) if the political subdivision enacted and imposed the tax before January 1, 1982, and
1.13its predecessor provision.
1.14 (b) This section governs the imposition of a general sales tax by the political
1.15subdivision. The provisions of this section preempt the provisions of any special law:
1.16 (1) enacted before June 2, 1997, or
1.17 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
1.18provision from this section's rules by reference.
1.19 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
1.20special excise tax on motor vehicles.
1.21(d) Until after May 31, 2010, a political subdivision may not advertise, promote,
1.22expend funds, or hold a referendum to support imposing a local option sales tax unless
1.23it is for extension of an existing tax or the tax was authorized by a special law enacted
1.24prior to May 20, 2008.
2.1EFFECTIVE DATE.This section is effective July 1, 2011.
2.2 Sec. 2. [297A.994] CITY LOCAL SALES AND USE TAX.
2.3 Subdivision 1. Authorization; rates. Notwithstanding sections 297A.99,
2.4subdivisions 2, 3, 5, and 13, and 477A.016 or any other law, a statutory or home-rule
2.5charter city may, upon approval of the voters at a general election, impose a local sales
2.6and use tax of up to one-half of one percent within the city. If the city imposes a general
2.7sales and use tax under another law, the amount it may impose under this section may
2.8not exceed one-quarter of one percent while the other tax is imposed. The provisions
2.9of section 297A.99, subdivisions 4 and 6 to 12a govern the imposition, administration,
2.10collection, and enforcement of a tax imposed under this section. A tax authorized under
2.11this section may not be imposed before July 1 of the year following the year in which the
2.12general election is held.
2.13 Subd. 2. Use of revenues. Revenues received from a tax imposed under subdivision
2.141 shall be deposited in the city's general fund and may be used for any city purpose.
2.15 Subd. 3. Termination of tax. A tax imposed under subdivision 1 expires when the
2.16city council, by ordinance, terminates the tax, subject to the notification requirements in
2.17section 297A.99, subdivision 12.
2.18EFFECTIVE DATE.This section is effective beginning July 1, 2011.
2.19 Sec. 3. Minnesota Statutes 2010, section 477A.013, is amended by adding a
2.20subdivision to read:
2.21 Subd. 11. Aid offset for certain local sales and use taxes. The aid under
2.22subdivision 9 is reduced by 50 percent to any city imposing a sales and use tax under
2.23section 297A.994 in the calendar year in which the aid is paid. If the sales tax is first
2.24imposed after June 30 of the calendar year in which the aid is paid, the aid reduction in
2.25that year shall only be equal to 50 percent of the second installment of the aid paid in that
2.26calendar year. The amount of the reduction shall be retained in the general fund and not
2.27redistributed under the formula contained in this section.
2.28EFFECTIVE DATE.This section is effective for aids payable in calendar year
2.292012 and thereafter.
2.30 Sec. 4. Minnesota Statutes 2010, section 477A.016, is amended to read:
2.31477A.016 NEW TAXES PROHIBITED.
3.1No county, city, town or other taxing authority shall increase a present tax or impose
3.2a new tax on sales or income, except as provided under sections 297A.992, 297A.993,
3.3and 297A.994.
3.4EFFECTIVE DATE.This section is effective the day following final enactment.
1.3providing for an aid offset;amending Minnesota Statutes 2010, sections 297A.99,
1.4subdivision 1; 477A.013, by adding a subdivision; 477A.016; proposing coding
1.5for new law in Minnesota Statutes, chapter 297A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to
1.8read:
1.9 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
1.10impose a general sales tax (1) under section
1.11under section 297A.994, (4) if permitted by special law enacted prior to May 20, 2008, or
1.12
1.13its predecessor provision.
1.14 (b) This section governs the imposition of a general sales tax by the political
1.15subdivision. The provisions of this section preempt the provisions of any special law:
1.16 (1) enacted before June 2, 1997, or
1.17 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
1.18provision from this section's rules by reference.
1.19 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
1.20special excise tax on motor vehicles.
1.21
1.22
1.23
1.24
2.1EFFECTIVE DATE.This section is effective July 1, 2011.
2.2 Sec. 2. [297A.994] CITY LOCAL SALES AND USE TAX.
2.3 Subdivision 1. Authorization; rates. Notwithstanding sections 297A.99,
2.4subdivisions 2, 3, 5, and 13, and 477A.016 or any other law, a statutory or home-rule
2.5charter city may, upon approval of the voters at a general election, impose a local sales
2.6and use tax of up to one-half of one percent within the city. If the city imposes a general
2.7sales and use tax under another law, the amount it may impose under this section may
2.8not exceed one-quarter of one percent while the other tax is imposed. The provisions
2.9of section 297A.99, subdivisions 4 and 6 to 12a govern the imposition, administration,
2.10collection, and enforcement of a tax imposed under this section. A tax authorized under
2.11this section may not be imposed before July 1 of the year following the year in which the
2.12general election is held.
2.13 Subd. 2. Use of revenues. Revenues received from a tax imposed under subdivision
2.141 shall be deposited in the city's general fund and may be used for any city purpose.
2.15 Subd. 3. Termination of tax. A tax imposed under subdivision 1 expires when the
2.16city council, by ordinance, terminates the tax, subject to the notification requirements in
2.17section 297A.99, subdivision 12.
2.18EFFECTIVE DATE.This section is effective beginning July 1, 2011.
2.19 Sec. 3. Minnesota Statutes 2010, section 477A.013, is amended by adding a
2.20subdivision to read:
2.21 Subd. 11. Aid offset for certain local sales and use taxes. The aid under
2.22subdivision 9 is reduced by 50 percent to any city imposing a sales and use tax under
2.23section 297A.994 in the calendar year in which the aid is paid. If the sales tax is first
2.24imposed after June 30 of the calendar year in which the aid is paid, the aid reduction in
2.25that year shall only be equal to 50 percent of the second installment of the aid paid in that
2.26calendar year. The amount of the reduction shall be retained in the general fund and not
2.27redistributed under the formula contained in this section.
2.28EFFECTIVE DATE.This section is effective for aids payable in calendar year
2.292012 and thereafter.
2.30 Sec. 4. Minnesota Statutes 2010, section 477A.016, is amended to read:
2.31477A.016 NEW TAXES PROHIBITED.
3.1No county, city, town or other taxing authority shall increase a present tax or impose
3.2a new tax on sales or income, except as provided under sections 297A.992, 297A.993,
3.3and 297A.994.
3.4EFFECTIVE DATE.This section is effective the day following final enactment.
