This bill strikes language that caps the maximum combined rate of Minneapolis lodging taxes, state general taxes, and any other local taxes.
Under general sales tax law, counties participating in a joint powers agreement may levy, in pertinent part, up to a 0.25% general sales tax to fund transportation improvements. Under that authority, the County Transit Improvement Board (CTIB) was formed, and the tax was known as the “CTIB tax.” In 2017, the CTIB was disbanded and the tax terminated. Under separate authority, a county may impose a transportation sales tax rate of up to 0.5%, which Hennepin County enacted beginning in October, 2017.
The overall limit under special law on taxes that may be imposed in Minneapolis is thus affected by the increased Hennepin County transportation tax rate.
Effective for sales and purchase made after September 30, 2018.
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