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HF328 (Legislative Session 94 (2025-2026))

Voter approval of the regional transportation sales and use tax required.

Related bill: SF1002

AI Generated Summary

Purpose

  • Change how the regional transportation sales and use tax is approved and applied in the Twin Cities metropolitan region. The bill requires county-level voter approval to impose the tax and defines a narrower area (the "authorized area") where the tax can be imposed starting in 2027, while maintaining a transitional rate through 2026.

Main provisions

  • Definitions
    • Authorized area: counties in the metropolitan area where, in the 2026 general election, a majority of voters in each county who vote on the question support imposing the regional transportation tax. Inclusion or exclusion is determined separately for each county.
    • Metropolitan area: the seven counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
    • Metropolitan Council: the regional planning body established in statute.
    • Regional transportation sales tax: the regional sales and use tax for transportation purposes.
  • Tax rate and timing
    • Through December 31, 2026: the tax rate is 0.75% on retail sales and uses taxable under Minnesota tax law made in the metropolitan area or to a destination in the metropolitan area.
    • Beginning January 1, 2027: the tax rate remains 0.75%, but the tax applies to sales and uses in the authorized area or to destinations in the authorized area.
  • Implementation approach
    • The tax is imposed only in counties that vote to approve it in their 2026 general election, with per-county determinations for inclusion.
    • The Metropolitan Council is still the body responsible for imposing the tax, but the geographic scope is limited to the authorized area after 2026, based on county votes.

Significant changes to existing law

  • Geographic scope shift
    • Moves from a metro-wide imposition (metropolitan area) to a county- and vote-determined area (authorized area) beginning in 2027.
  • Voter approval process
    • Requires separate, county-by-county voter approval in the 2026 general election to include each county in the tax’s imposition.
  • Taxes and timing
    • Maintains a 0.75% tax rate but ties its applicability to the newly defined authorized area starting in 2027, while preserving the metropolitan area applicability through the end of 2026.

Relevant Terms - regional transportation sales and use tax - Metropolitan Council - authorized area - metropolitan area - Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington (counties) - majority of voters - 2026 general election - per-county vote - three-quarters of one percent (0.75%) - retail sales and uses taxable - destination in the metropolitan area - destination in the authorized area - voter approval - Minnesota Statutes 2024 section 297A.9915 subdivisions 1 and 2

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTransportation Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds definitions for 'Authorized area', 'Metropolitan area', 'Metropolitan Council', and 'Regional transportation sales tax' to subdivision 1."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 297A.9915, subdivision 1, to add definitions related to the regional transportation sales and use tax (e.g., 'Authorized area', 'Metropolitan area', 'Metropolitan Council', 'Regional transportation sales tax').",
      "modified": [
        "Defines terms used for the regional transportation sales tax; updates terminology to support the tax imposition."
      ]
    },
    "citation": "297A.9915",
    "subdivision": "Subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Imposes a rate of three-quarters of one percent (0.75%) on retail sales and uses taxable under this chapter in the metropolitan area until 12/31/2026.",
        "Beginning 1/1/2027, imposes the same rate (0.75%) on retail sales and uses taxable under this chapter in the authorized area."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 297A.9915, subdivision 2, to set the rate of the regional transportation sales and use tax: 0.75% in the metropolitan area through 12/31/2026; thereafter 0.75% in the authorized area (starting 1/1/2027).",
      "modified": [
        "Changes timing and scope of tax imposition: from metropolitan area (through 2026) to authorized area (starting 2027)."
      ]
    },
    "citation": "297A.9915",
    "subdivision": "Subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references Minnesota Statutes 473.123, subdivision 1, in relation to the Metropolitan Council and the authority to impose the regional transportation sales and use tax.",
      "modified": [
        "Utilizes 473.123, subdivision 1 as the basis for defining the Metropolitan Council and its role in the regional transportation tax policy."
      ]
    },
    "citation": "473.123",
    "subdivision": "Subdivision 1"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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