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MN SF2980

Bill

Status

Introduced

3/4/2010

Primary Sponsor

Ann Rest

Click for details

Origin

Senate

86th Legislature 2009-2010

AI Summary

  • Reduces the state sales tax rate from 6.5 percent to 6.25 percent, effective after June 30, 2011.

  • Lowers the current year aid payment percentage for school districts to 73 percent in fiscal year 2010, then gradually increases to 90 percent by fiscal year 2021 and later.

  • Dedicates $120,000,000 annually beginning in fiscal year 2012 from repealed clothing sales tax exemption revenue to adjust the school payment shift, with additional revenue dedicated to reducing the sales tax rate once school payments reach 90 percent.

  • Requires the commissioner of revenue to track and report annually on tax revenue changes resulting from the repeal of the clothing sales tax exemption.

  • Adjusts transportation and county sales and use tax rates: reduces county transportation tax from one-quarter of one percent to 0.24 percent and reduces county sales and use tax from 0.15 percent to 0.144 percent.

Legislative Description

State and local government financing provisions modification; school districts current year aid payment percentage reductions; sales tax rate reduction and rate of adjustment proportion calculation requirement; commissioner of revenue rate adjustments and tracking requirements; transportation sales and use tax rate reduction; county sales and use tax rate reduction; clothing sales tax exemption repeal

Last Action

Senate: Author stricken Johnson

3/23/2010

Committee Referrals

Finance3/4/2010

Full Bill Text

No bill text available