Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF491

Introduced
1/23/25  

Caption

Metropolitan region sales and use tax repeal

Summary

SF 491 repeals Minnesota Statutes 2024, section 297A.9925, which is the law authorizing the metropolitan region sales and use tax. Under current law, that tax requires the Metropolitan Council to impose a 0.25 percent sales and use tax in the metropolitan counties, with the revenue distributed to housing-related accounts for state rent assistance, metropolitan city aid, and metropolitan county aid. The bill would eliminate that tax authority entirely. The repeal is effective July 1, 2025. If enacted, it would remove the statutory basis for collecting the metropolitan region sales and use tax and end the associated revenue stream dedicated to housing assistance and local aid in the metro area. The bill therefore affects the Metropolitan Council, retailers collecting the tax, and the state and local housing aid accounts that currently receive the proceeds.

Impact

This bill would repeal the statute authorizing the metropolitan region sales and use tax, ending the 0.25 percent metro-area sales tax and the related distribution formula for its proceeds. It would directly affect Minnesota Statutes section 297A.9925 and indirectly affect the state rent assistance account, the metropolitan city aid account, and the metropolitan county aid account that currently receive the revenue.

Sentiment

The available record shows a straightforward repeal proposal with no committee transcript or recorded votes provided, so there is no documented debate or vote-based sentiment in the materials supplied. Based on the bill text and caption, the measure appears to be a tax-repeal bill focused on eliminating a regional sales tax rather than modifying it.

Contention

The main point of contention implied by the bill is whether to preserve or eliminate a dedicated regional sales tax that funds housing assistance and local aid in the metropolitan area. Supporters of repeal would likely object to the tax burden and the Metropolitan Council’s authority to impose it, while opponents would likely emphasize the loss of funding for rent assistance, city aid, and county aid. No specific legislators, testimony, or recorded votes are available to show which side has actively advanced those arguments.

Companion Bills

No companion bills found.

Previously Filed As

MN SF1273

Metropolitan region sales and use tax repealer

MN SF1274

Metropolitan region sales and use tax repealer

MN HF2629

Definitions modified for purposes of regional sales taxes.

MN SF765

Certain definitions modifications for purposes of certain regional sales taxes

MN HF328

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

MN SF1002

Voter approval of the regional transportation sales and use tax requirement

MN SF108

Amending and Repealing certain transportation-related taxes

MN HF3264

Allocation of revenue from the regional transportation sales tax for student transit and replacement services modified.

MN SF1243

Metropolitan Council abolishment

MN SF3523

Revenue allocation from the regional transportation sales tax for student transit and replacement services modification

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