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Local Sales Tax in Minnesota Attachment C 2)distribute the information about the sales tax contained in the required resolution, but only if specific proposed projects and their individual projected costs are enumerated; and 3)host publicforums on the issue, provided proponentsand opponents were given equaltime tospeak.(Minn. Stat. §297A.99, subd. 1,para. (d)) Local Resolution Requirements for Seeking Special Legislation Before apolitical subdivisionseeksspecial legislation authorizingthe imposition of the sales tax, its governing body must pass a resolution indicating its desire to impose the tax. The resolution must include information on the proposed tax rate, the amount of revenue to be raised and its intended use, and the anticipated date when the tax will expire. Information from the resolution is used in preparing the necessary special legislation. (Minn. Stat. § 297A.99, subd. 2) Special Resolution for Certain Taxes Authorized in the 2019 Session Certain cities that were authorized to impose a local sales tax in 2019 are required to pass a second resolution before the tax may be imposed. The resolution must enumerate very specific projects to be funded by the sales tax revenues within the broader project areas listed in the original voter-approved referendum and requires that funds only be used for those projects. The definition of “specific project” can be found in Minnesota Laws 2019, first special session, chapter 6, article 6, section 34. Cities subject to this provision are: Avon, Cambridge, Glenwood, International Falls, Two Harbors, and Worthington. Voter Approval Requirements Before Imposition of the Tax 4 Political subdivisions must hold a local referendum at a general election before imposing a local sales tax authorized by special law. Over the years, the timing of the referendum— whether it should be held before or after the enabling legislation had passed has changed. Currently the sales tax must be authorized by the legislature before the voters can approve its imposition. (Minn. Stat. § 297A.99, subd. 3) If the enabling legislation allows the tax to fund more than one project a separate vote must be held for each project. Only the projects approved by voters may be funded by the sales tax and the authorized revenue to be raised and length the tax is imposed is reduced for any project that is not approved by the voters. 4 A general election means either the state general election held on the first Tuesday after the first Monday in November of an even-numbered year, or a regularly scheduled election for local public officials for that political subdivision. Minnesota House Research Department Page 3