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HF 4849

Hennepin County authorized to impose local sales tax.

2025-2026 Regular Session Introduced by Aisha Gomez

Allows a local up to 1% sales tax in Hennepin County to fund a specified high-need health care facility’s capital, operations, and debt, via bonds.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 4849

Summary: HF 4849 (2025-2026) – Hennepin County Local Sales Tax Authorization

Purpose and intent

  • Authorizes Hennepin County to impose a local sales and use tax of up to 1% to fund health care facilities and related infrastructure and services.
  • The levy is intended to support an eligible health care facility in Hennepin County through capital development, infrastructure, operations, and debt financing.

Key provisions and changes

Tax authorization

  • New statute: Minnesota Statutes, chapter 297A, proposed section 297A.9945: Hennepin County Sales Tax.
  • The county may impose a local sales and use tax of up to 1% for purposes described in the bill.
  • The tax is in addition to any other local sales tax or statutory authority.

Use of revenue (Subdivision 2)

Revenue from the tax must be distributed to the board of directors of an eligible health care facility in Hennepin County.
The board must use funds for:
1. Development, construction, improvement, and equipping of the health care facility.
2. Construction or renovation of public infrastructure to support the health care facility.
3. Accumulation of reserves for capital improvements.
4. Reimbursement of uncompensated care provided by the health care facility.
5. Operating expenses of the health care facility.
6. Payment of costs to issue and finance bonds under subdivision 3.

  • Define “eligible health care facility” as a nonstate government teaching hospital with:
    • High medical assistance utilization, and
    • A level 1 trauma center, located in Hennepin County.

Bonding authority (Subdivision 3)

  • The county may issue bonds under Chapter 475 to finance, in whole or part, the costs authorized in subdivision 2.
  • Bonding options:
    • Issue bonds to finance or refund previously issued bonds for the same purposes.
    • Bonds may be limited obligations payable solely from the tax revenues plus any other available revenues.
    • The county may pledge its full faith and credit and taxing power as additional security.
    • No voter election under section 475.58 is required.
    • Bonds are not included in debt limitations applicable to the county.

Administration, collection, and enforcement (Subdivision 4)

  • The tax administration, collection, and enforcement follow the provisions of Minnesota Statutes section 297A.99, subdivisions 4 and 6 to 12a.

Effective date

  • Effective the day after final enactment.
  • Applies to sales and purchases made after September 30, 2026.

Who is affected

  • Hennepin County government and taxpayers within the county.
  • Eligible health care facility(s) meeting the defined criteria (nonstate teaching hospital with high MA utilization and Level 1 trauma center in Hennepin County).
  • Public infrastructure projects connected to the health care facility.
  • Bond markets and related financing/credit arrangements for the eligible facility.

Timeline and procedural notes

  • Introduction and first reading: April 7, 2026.
  • Effective date: day after enactment; applicable to transactions after September 30, 2026.
  • No required ballot measure or voter approval for bonding (as per Section 3).

Potential impacts and considerations

  • Financing capacity: Up to 1% local sales tax could raise substantial funds for eligible facility-related projects, including capital, operations, and debt service.
  • Economic impact: The tax increase may affect consumer purchases in Hennepin County; the revenue is earmarked for a specific public health facility and associated infrastructure.
  • Accountability: Revenue designated to a defined facility and purposes; governance via the facility’s board of directors.
  • Timing: Tax takes effect after enactment and sales after September 30, 2026; budgeting and debt issuance would align with that timeline.

If you’d like, I can provide a quick comparison to similar authorized local taxes in Minnesota or create a plain-language FAQ for residents.

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

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