SF4831

Purpose

To modify existing law so the city of Elk River can implement a local sales and use tax of 0.5% (one-half of one percent) by city ordinance, for purposes described in the bill. The authority relies on prior voter approval from the November 6, 2018 general election.

Main Provisions

• The city of Elk River may, by ordinance, impose a local sales and use tax of 0.5% (one-half of one percent).
• This authority is stated to apply notwithstanding Minnesota statutes or other laws, as long as the action aligns with the voters’ prior approval in the November 6, 2018 general election.
• The tax is to be administered, collected, and enforced under Minnesota Statutes section 297A.99, except as otherwise provided in this section.
• If the tax is approved by voters in a general election under Minnesota Statutes section 297A.99, subdivision 3, paragraph (a), the city must use the revenues from the tax for the purpose specified in subdivision 2a.

Local Authority and Revenue Use

• The tax is tied to purposes described in subdivision 2 (not shown in this excerpt). The bill requires that, upon voter approval, revenues be dedicated to the purpose specified in subdivision 2a.
• The authority to impose and the required use of revenues depend on the voter approval process and the specified purposes.

Significant Changes to Existing Law

• Adds a subdivision to authorize Elk River to impose a 0.5% local sales and use tax by ordinance.
• Creates a permissive framework that remains subject to voter approval and to the specified purposes in subdivision 2 and 2a.
• Clarifies that state tax administration rules (297A.99) apply unless this section provides otherwise, reinforcing local control with a state-law framework.

Relevant Terms - Elk River - local sales tax - sales and use tax - one-half of one percent (0.5%) - by ordinance - voter approval - November 6, 2018 general election - Minnesota Statutes section 297A.99 - administration, collection, enforcement - subdivision 2 - subdivision 2a - Notwithstanding - Laws 2019 First Special Session chapter 6 section 17