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HF 4094

Crosby authorized to impose a local sales tax.

2025-2026 Regular Session Introduced by Ben Davis

Authorizes Crosby to enact a local option sales tax with voter approval, restricting proceeds to municipal uses and subject to state/local tax rules.

Introduction and first reading, referred to Taxes
#citiesandtowns-specific #taxation-salesanduse
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WeVote Research Nonpartisan
Bill Summary · HF 4094

Summary of HF 4094 (2025-2026) – Minnesota

Title

Crosby authorized to impose a local sales tax.

Purpose and intent

HF 4094 would authorize Crosby, a city in Minnesota, to impose a local sales tax. The bill sets out the framework for establishing, implementing, and governing a local option sales tax within the city, providing the city government with a dedicated revenue source, subject to voter approval and statutory requirements.

Key provisions and changes

  • Authorization for local sales tax: Authorizes the city of Crosby to adopt a local sales tax. The specific tax rate, base, and applicability would be determined in accordance with the bill’s provisions and applicable Minnesota law.

  • Tax rate and exclusions (to be defined): The bill generally would specify the permissible tax rate (and any exclusions or exemptions) for the local sales tax. It may include provisions common to Minnesota local-option sales taxes, such as limits on rate, sunset provisions, or use restrictions, though exact rates are not stated in the available summary.

  • Use of proceeds: Local sales tax revenue would typically be restricted to authorized public purposes (e.g., infrastructure, capital projects, public safety, or other municipal needs). The bill would define eligible uses and may require annual reporting on fund use.

  • Voter approval: Local option taxes in Minnesota generally require voter approval via a referendum. HF 4094 would likely outline the process for placing the sales tax on the ballot, including required notices and timing, and any thresholds for passage.

  • Administration and collection: The bill would specify who administers and collects the tax (likely in coordination with the Minnesota Department of Revenue or under county/state administration rules) and how the funds are remitted to the city.

  • Local governance and oversight: Provisions may include oversight requirements, such as annual audits, financial reporting, and public accountability measures for the use of tax proceeds.

  • Relation to state law: The bill would operate within the framework of Minnesota statutes governing local option taxes, including any constraints on duration, renewal, and sunset provisions.

Affected parties

  • City of Crosby: Primary jurisdiction that would implement and receive local sales tax revenues if the measure is approved.
  • Residents and visitors of Crosby: Potential impact includes changes in sales prices due to the local tax and access to funded municipal projects or services.
  • Local businesses: Businesses within Crosby would be responsible for collecting the tax at the point of sale, subject to exemptions and administrative rules.
  • City government and taxpayers: Subject to reporting, oversight, and accountability requirements.

Procedural and timeline aspects

  • Introduction and referral: HF 4094 was introduced and referred to the Taxes committee (as of 2026-03-09).
  • Next steps: If advanced, the bill would go through committee hearings, potential amendment, and floor votes. For a local option tax, passage typically culminates in a voter referendum in Crosby. If approved by voters, the tax would take effect per the schedule established in the enacted statute and any accompanying implementation timeline.

Notes

  • The sponsor listed is co-sponsor Ben Davis. The summary reflects typical structure for Minnesota local-option sales tax legislation; the precise rate, eligible uses, sunset provisions, and ballot timing would be specified in the final text of the bill and any accompanying authorizing measures.

If you’d like, I can compare HF 4094 to similar local-option sales tax bills in Minnesota or provide a draft outline of likely fiscal notes and public outreach requirements based on common Minnesota practice.

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

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