Last Week
House Committee on Taxes hears Hennepin County local sales tax proposal: On Wednesday the House Committee on Taxes heard HF4841 (Agbaje) which would modify the existing 0.15% Hennepin County sales tax to increase it to 1% in order to support Hennepin Health Care. Many outside observers have viewed this bill as possibly integral to an omnibus tax bill coming together. Rep. Esther Agbaje co-presented the bill with Rep. Danny Nadeau. The bill modifies the authorized use of revenue from the tax to allow Hennepin County to allocate revenue to hospitals in Hennepin County, as well as to capital reserves for the Twins stadium. The language provides authority to the county to issue bonds and acquire property in relation to health care facilities in the county. Some proponents of the bill noted that given that 31% of the patients that go to HCMC are from outside the county that a countywide sales tax, which taxes non-residents as well as residents, is an appropriate source of revenue for the hospital. Questions also came up around the governance structure of the hospital moving forward as well as whether the local sales tax would supplant or supplement property tax revenue that Hennepin County is currently levying to support the hospital. The bill was laid over though it was noted the committee may take more time to discuss the issue in the future. The senate companion is scheduled to be heard this Wednesday morning, though it is expected that an amendment will be added that will substantively change the approach for consideration in that chamber.
Bill introductions of interest:
- HF4802 (Nadeau)/SF4946 (Abeler) Prohibiting an increase in property value for homesteads owned by persons age 65 or older
- HF4809 (West) Establishing levy limits for local governmental units
- HF4841 (Agbaje)/SF4986 (Rest) Modifying authority related to the Hennepin County local sales tax; providing for grants to county health care facilities and to the ballpark authority for certain improvements
- HF4845 (Hollins) Establishing a new fifth tier individual income tax rate; increasing the appropriations for local government aid and county program aid
- HF4849 (Gomez) Authorizing Hennepin County to impose a local sales tax for Hennepin County Medical Center
- HF4861 (Warwas) Increasing the appropriations for local government aid and county program aid
- HF4906 (Davids) Providing for a one-time property tax refund to multiple types of property
- SF4999 (Limmer) Modifying class 2 classification for agricultural land and clarifying definition of market farming
- SF5010 (Hauschild) Increasing the homestead credit refund by reducing co-pays
- SF5052 (Rest) Governor’s supplemental budget tax recommendations