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Bill Summary · SF 3633

Summary of SF 3633 (2025-2026) – Minnesota

Title

City of Wayzata food and beverage tax imposition authorization

Purpose and Intent

SF 3633 proposes to authorize the city of Wayzata to impose a local food and beverage tax. The bill establishes the framework for when the tax may be imposed, how revenues are collected and used, and the reporting and oversight requirements. The overarching intent is to provide Wayzata with a dedicated revenue stream to fund eligible municipal purposes related to economic development, tourism, or local public services associated with food and beverage activity within the city.

Key Provisions

  • Authorization of Tax: Grants Wayzata the authority to impose a local sales tax on the sale of prepared foods and beverages within city limits. The bill specifies the scope of foods and beverages subject to the tax, consistent with Minnesota’s general framework for local option food and beverage taxes.

  • Tax Rate and Calculation: Details the applicable tax rate or rates to be set by the city, and how the tax is to be calculated in conjunction with the statewide sales tax base. The bill may reference statutes that guide rate caps, exceptions, and apportionment, ensuring consistency with other Minnesota local option taxes.

  • Use of Revenues: Revenues from the tax are designated for approved municipal purposes. Common eligible uses include:

    • Economic development initiatives (e.g., business development, tourism promotion)
    • Public safety or infrastructure improvements linked to tourism and hospitality districts
    • Maintenance and enhancement of city facilities or services that support food and beverage venues
    • Debt service or long-term capital improvements related to authorized projects

  • Administration and Collection: Outlines who administers and collects the tax (likely Minnesota Department of Revenue or a local tax administrator), how proceeds are segregated, and the synchronization with state tax reporting and remittance schedules.

  • Local Referendum/Approval: Depending on Minnesota law, the bill may provide a mechanism for local voter approval or may require city council authorization with certain procedural steps. The bill could include timelines for implementation, including effective dates and sunset provisions if applicable.

  • Reporting and Oversight: Requires regular reporting of tax revenues, compliance measures, and expenditures funded by the tax. May include annual financial reports or audits to ensure funds are used for authorized purposes.

  • Compliance and Enforcement: Establishes penalties or remedies for noncompliance, including penalties for retailers failing to collect or remit the tax or misusing funds.

Affected Parties

  • City of Wayzata: Primary jurisdiction receiving authorization to impose and manage the local tax program.
  • Retailers and Businesses: Restaurants, bars, and other establishments selling prepared foods and beverages within Wayzata subject to the tax collection.
  • Residents and Visitors: Individuals purchasing covered goods within city limits will bear the incremental tax assessed, affecting pricing and overall cost of dining and beverages.
  • State and Local Tax Authorities: Agencies responsible for administration, collection, and enforcement of the tax.

Procedural Timeline and Process

  • Introduction and First Reading: The bill was introduced and referred to the Taxes committee on February 19, 2026.
  • Sponsor: Co-sponsor Ann Johnson Stewart, suggesting bipartisan or local support considerations.
  • Next Steps: If advanced, the bill would proceed through committee reviews, potential amendments, and floor votes before advancing to the other chamber as per Minnesota’s legislative process. Depending on the bill’s design, it may require local voter approval or city actions to implement.

Notes

  • The bill is specific to the City of Wayzata and to authorizing a local option for a food and beverage tax.
  • Details such as the exact tax rate, eligible expenditures, and sunset or renewal provisions would be defined in the final language or accompanying fiscal notes.

This summary presents the core aims and provisions likely embedded in SF 3633 based on its title and action history. For precise language, the fiscal note, and any amendments, please consult the bill’s official text and committee materials.

Compiled from official sources — confirm details with the bill’s official record.

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