CC_Minutes_2002_0325 - Laserfiche WebLink

Home

l-louse Rr:searcl~ I)epart~t~crat [".c~cal dales '~"axes i~~ ~~tinneso~a I~~~~ge e "l`l~e legislature enacted die proposed local sales tax t~.~les in the 1997 session. 'l"he le~~islature added aclclitio~lal language in 1 ~)~~~ and 1999 to it~cot-porate some standards that tl~e 1-louse and Senate tax committees l~~acl started to use in evaluating proposals f~~r nev~~ local sales tE~~x authorit~l aa~cl to clarif'~j son~.e additio~~al admitZistration isst"yes. The. 1 ~~~ and 1999 additions are indicated in t~~~. ~~1~f.~4 ~~.~C~ry. ~~~eal ~l'ax~s Sul~~~et tt~ ~~~~ ~tatut~~~•`r l~rc~~lsl~~ns ~1"~l~e statutory provisions apply to all local sales taxes authorized after crane ~, 1997, unless the et~abli~~tg legislation specifically exempts the local authority from these rules by reference. Starting o~~ January 1, ?0~~, the statutory provisions apply to al~d preerl~pt any contrary provisions of all local sales taxes authorized before Ju~~e ?, 1997. S~~ps that a ~oeal ~~~~re~-~~n~ent ~~st ulln« to ln~~~s~ a ~€~e~l S~~l~s 'l'ax ~-~ political stabdivisiort must get special legislation authorizing the imposition of the sales tax. The statute requires that the gc~>ve~-ni~~g body of the political subdivision pass a resolution indicating its desire to impose the tax prior to requesting the enabling legislation. The resolution must include itlformation on the proposed tax rate, the atz~ou~~t of revenue to be raised and its intended use, and tl~e anticipated date «rhen the tax would expire. This resolution requirement ~~vas added during the 1998 sessio~l. In 1999 the legislature began requiri~~g a political subdivision to 1-~olcl a local referendum at a ge~~er-al electioa~-' before i~~~posing an autl-~orized local sales tax. ~"~he revenue nay only be used to fund specific capital improvements ~~fl~icl~ must be identified at bast 9p days before the referet~dut~n. This codifies existing practice sir~tce most special le~,~islation authorizing local taxes passed in recent years already inlpased these requi~~e~~~ents. ~t~~°n~inatit~n uf` the focal Tax date Tl~e local tax rate is set in the legislation authorizing tl~e tax. Tl~e statute clarif~~es that tl~e full local tax rate applies to all taxable sales, even those that are taxed at a reduced rate b~~ the state. ~~flnftion of the Tax asp f`or the ~~aeal 'ax t~ general eiectio~i l~1eaA~s either the state ~e~leral electiof~ held o~1 tl~e first Tuesday after the first Mo~lday in ?~o~ren~ber of an ever-numbered year, or a regEdarly scheduled election far Iocal pudic officials for that political subdivision.