MN HF5336

Creates a new authorization mechanism under section 297A.9901 allowing cities and counties to impose local sales taxes for specified capital projects (convention centers, libraries, parks, sports complexes, and trails) with state auditor approval and voter approval, subject to a combined 1% tax rate limit.

Requires political subdivisions seeking to impose a local sales tax to hold public hearings, adopt resolutions describing projects, obtain letters of support from at least two surrounding governments, and submit documentation to the state auditor for verification that projects meet regional significance requirements.

Establishes a local sales tax equalization distribution account funded by 15% of collected local sales tax revenues, with amounts distributed to other political subdivisions based on fiscal capacity and population using a formula in section 297A.9903.

Creates state auditor oversight responsibilities including verification of project eligibility, approval of tax proposals, and development of uniform accounting and financial reporting requirements for all political subdivisions imposing local sales taxes.

Appropriates unspecified funds to the state auditor in fiscal year 2025 for implementing oversight requirements, with funds available through June 30, 2027, and repeals the temporary moratorium on local sales tax activities.