S.F. No. 5424 - Summary

• Modifies local sales tax authorization rules to allow political subdivisions to impose sales taxes for specified capital projects (airports, convention centers, correctional facilities, law enforcement centers, libraries, parks, regional community centers, regional sports complexes, and trails) without legislative authorization if regional significance is demonstrated.

• Requires political subdivisions to conduct public hearings, adopt resolutions documenting regional benefits, obtain voter approval with separate questions for each project, and file documentation with the state auditor by November 30 prior to seeking voter approval.

• Establishes that tax revenues must be dedicated exclusively to approved capital improvement projects, prohibits commingling with other tax sources, and limits total local sales tax rate to one percent (with exceptions for taxes authorized before June 1, 2023).

• Restricts political subdivision spending on tax promotion to conducting referendums, disseminating project information with specific costs, holding public forums with equal time for proponents and opponents, and providing facts about tax impacts and funded projects.

• Creates state auditor oversight through a uniform accounting system and requires annual financial reporting by political subdivisions imposing local sales taxes; repeals temporary moratorium on new local sales taxes effective July 1, 2024.