MN SF4518

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, invoices, or bills of sale

Tourism improvement district service charges collected from purchasers and separately stated on invoices are excluded from the "sales price" definition for sales tax purposes, meaning no sales tax applies to these charges

Service charges in tourism improvement districts 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 are effective retroactively for sales and purchases made after June 30, 2025