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Local Sales Tax in Minnesota Attachment C 2)The local government must submit the resolution and documentation on regional significance of the project(s) to the chair and ranking minority member of the House and Senate tax committees by January 31 of the year that it is seeking the special law. 3)Working with a legislator, the local government must request and get enacted a special law authorizing imposition of the tax. 4)The local government must file local approval with the secretary of state before the start of the next regular legislative session after the session in which the enabling law is enacted. 5)The local government must receive voter approval at a general election within two years of receiving the local sales tax authority before it can impose the tax. A separate question must be held for each project and only the ones approved by voters may be funded by the sales tax. The authorized revenue to be raised and length of time that the tax is imposed is reduced for any project that is not approved by the voters. 6)The local governmentmust passan ordinance imposing the tax and notify the Commissioner of Revenue at least 90 days before the first day of the calendar quarter on which the tax is to be imposed. Transportation Local Sales Taxes Authorized by Statute In 2008, the legislature enacted two statutes to allow counties to impose local sales taxes to help fund transportation. The Metropolitan Transportation Area sales tax provision allowed any county in the Twin Cities seven-county metropolitan area, to join the Metropolitan Transportation Area, which imposed a tax in the area to fund transit projects. The Metropolitan Transportation Area was dissolved in 2017 and this provision is currently not used. The history of this provision is included in the appendix. The Greater Minnesota transportation sales and use tax provision now applies to all counties in the state and allows them to impose a tax singly or as part of a joint powers agreement to fund a specified transportation or transit project, or transit operations. Greater Minnesota Transportation Sales and Use Tax Any county may singly or through a joint powers agreement, impose a local sales and use tax of up to one-half of 1 percent and a $20 excise tax on commercial sales of motor vehicles to fund a transportation or transit project. (Minn. Stat. § 297A.993) In order to impose the tax, the county or counties must specify a project to be funded by the proceeds. A county only needs to pass a resolution in order to impose the tax. The taxrevenue may pay for transit capital and operating costs and capital costs for a safe routes to school program, as well as specified transportation capital projects. Except in the cases where the tax is funding transit operating costs, the tax expires when the specific project is completed; Minnesota House Research Department Page 7