Item Description:
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Neg Agmt PR00005705 with the MN Dept of Revenue for administration, collection, and enforcement of Hennepin County local sales taxes
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00005705 with the Minnesota Department of Revenue for the administration, collection, and enforcement of Hennepin County local sales, use, and excise taxes, with an effective date of January 1, 2024, and with a contractual reimbursement rate of 1.35% of gross sales tax receipts; and that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreement on behalf of the County.
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Background:
Hennepin County has imposed two different local sales taxes. In 2006, the Minnesota Legislature authorized Hennepin County to approve a county ordinance to impose a 0.15% local sales and use tax to assist in funding a new major league ballpark and related infrastructure, and for other specified purposes (Laws of Minnesota 2006, Chapter 257; and Minn. Stat. 473.757, Baseball Stadium, County Activities). Accordingly, the county board adopted Ordinance 26, which authorized the 0.15% ballpark sales tax with an effective date of January 1, 2007.
In 2017, Hennepin County imposed its second local sales tax. Pursuant to state law, the county board approved Resolution 17-0207 on June 13, 2017, to impose a 0.5 percent local sales and use tax and a $20 motor vehicle sales tax that is dedicated to transit and transportation purposes (Minn. Stat. 297A.993, County Transportation Sales and Use Tax). The 0.5% county transportation sales tax had an effective date of October 1, 2017.
State law requires the MN Department of Revenue (the "Department") to administer, collect, and enforce all local sales taxes (Minn. Stat. 297A.99, Local Sales Taxes).The statute also requires that the Department deduct its costs of administration from the gross tax collections, prior to remitting tax pro...
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