Bill
SF 5251
Hennepin County may impose up to a 1% local sales tax to fund youth programs, library hours, and an eligible health care facility’s projects through grants and bonds.
Markdown Summary: SF 5251 (2025-2026) – Hennepin County Sales Tax Authorization
Overview
- Purpose: Authorize Hennepin County to impose a local sales and use tax of up to 1% to fund targeted local priorities, with a structured distribution of revenues to youth programs, library services, and a health care facility sector, plus bonding authority to finance eligible projects.
- Jurisdiction: Minnesota
- Session: 2025-2026
- Referred to: Taxes (House/Senate status: introduced 04/30/2026)
Key Provisions
1) Tax authorization and rate
- Hennepin County may impose a local sales and use tax up to 1% (in addition to any other local taxes).
- The county may adjust the rate by resolution to ensure sufficient revenue to fund the authorized purposes.
2) Use of revenue (priority order)
- First, distributions to reach up to $4,000,000 annually, adjusted by up to 1.5% annually, to fund:
a) Youth activities and youth/amateur sports within Hennepin County
b) Extension of library hours for Hennepin County libraries and Minneapolis public libraries
- Next, distributions to an eligible health care facility’s board of directors (as described below).
3) Eligible health care facility and allowable uses
- After the above distributions, revenue may be distributed to the board of directors of an eligible health care facility in Hennepin County.
- Eligible facility definition: a non-state government teaching hospital with high medical assistance utilization and a level 1 trauma center in Hennepin County.
- Approved uses by the facility’s board of directors include:
a) Development, construction, improvement, and equipment of the health care facility
b) Construction or renovation of public infrastructure to support the facility
c) Accumulation of reserves for capital improvements
d) Reimbursement of uncompensated care
e) Payment of operating expenses
f) Payment of costs for issuing/financing bonds related to these activities
4) Reporting and accountability
- The targeted funding under subsection (b) is intended to supplement, not replace, existing county expenditures.
- By January 15, 2029, and every odd-numbered year thereafter, the county must report to the chairs and ranking minority members of the legislature’s committees with jurisdiction over education policy and finance, describing how the money has been used.
5) Bonding authority
- The county may issue bonds under Chapter 475 to finance all or part of the eligible projects.
- Bonds may be:
- Limited obligations payable from the tax revenues and other available revenues
- Secured by the county’s full faith, credit, and taxing power (as additional security)
- The county may issue refunding bonds for previously issued bonds.
- No election under section 475.58 is required to authorize bonds.
- Bonds are not counted toward any county debt limits.
6) Administration, collection, and enforcement
- The tax is governed by the same administration provisions as other Minnesota local sales taxes (Minnesota Statutes section 297A.99, subdivisions 4 and 6–12a), ensuring standard processes for collection and enforcement.
Effective Date and Scope
- Effective date: The act becomes effective the day after final enactment.
- Applicability: Applies to sales and purchases made after September 30, 2026.
Potential Impacts
Notes
- The bill specifies “eligible health care facility” as a nonstate government teaching hospital with high MA utilization and a Level 1 trauma center in Hennepin County.
- Revenue allocation is explicit: up to $4 million (plus annual 1.5% growth) to youth and libraries, then to an eligible health care facility for listed purposes.
Compiled from official sources — confirm details with the bill’s official record.
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