MN HF4344

Businesses in tourism improvement districts may collect service charges from purchasers rather than absorbing the cost themselves, provided the charge is separately stated on receipts or invoices

Tourism improvement district service charges collected from purchasers and separately stated on invoices are excluded from the "sales price" definition for sales tax purposes

Service charges can be based on a percent of gross business revenue, a fixed dollar amount per transaction, or other reasonable methods approved by the municipality

Both provisions take effect retroactively for sales and purchases made after June 30, 2025