MN SF3180

Cities may impose a local sales and use tax of up to 0.5 percent without special legislative authorization if specific conditions are met, including voter approval and dedicated use for capital projects.

Tax revenue must be used exclusively for voter-approved capital projects such as single buildings, park improvements, or trails, with no proceeds allowed for maintenance or operating costs.

Cities must obtain commissioner of revenue approval of a resolution at least three months before holding a referendum, specifying the projects, maximum revenue amounts, and maximum time period (not to exceed 20 years) for the tax.

Tax automatically terminates when sufficient revenues are raised to fund approved projects or upon reaching the maximum time limit, and cities may not impose a new local sales tax while a previously authorized tax is still in effect.

Political subdivisions are prohibited from advertising or promoting referendums but may spend funds on conducting referendums, disseminating project information, public forums, and providing factual data on tax impacts.