H.F. No. 2172 Summary

• Establishes a new chapter 428B in Minnesota Statutes authorizing counties, cities, and towns to create tourism improvement districts with voter petition support.

• Allows districts to impose a service charge on specified lodging businesses based on gross revenue, fixed dollar amounts per transaction, or other reasonable methods approved by the municipality.

• Requires a petition from impacted business owners (majority), public hearing, and allows business owners to veto district creation or modifications by simple majority within 45 days of adoption.

• Mandates a tax-exempt nonprofit tourism improvement association to manage district funds and implement approved activities such as tourism promotion, marketing, and economic development.

• Provides annual 30-day disestablishment periods beginning one year after district creation, with remaining revenues refunded to business owners using the same calculation method as service charges.