H.F. 1066 Summary

• Authorizes Minnesota municipalities to create tourism improvement districts (TIDs) that impose service charges on specified businesses to fund tourism promotion and business development activities.

• Requires a petition from impacted business owners (those paying 50% or more of charges) and a public hearing before district establishment; district boundaries, designated tourism improvement association, activities, and service charge rates must be specified in an ordinance.

• Service charges may be based on a percentage of gross business revenue, a fixed dollar amount per transaction, or other reasonable methods approved by the municipality; collection may be performed by the municipality, tourism association, or other entity.

• Establishes an annual hearing requirement for continuation of service charges and allows business owners to veto ordinances through objections filed with the municipality clerk; impacted owners may also request disestablishment during a 30-day annual period with remaining revenues refunded proportionally.

• Tourism improvement associations must appoint a governing board with a majority of business owners or their representatives and have full discretion to select specific funded activities and improvements within those authorized in the ordinance.