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Bill

SF 1273

Metropolitan region sales and use tax repealer

2025-2026 Regular Session Introduced by Cal Bahr and 4 co-sponsors

Minnesota bill would eliminate the Twin Cities metropolitan sales tax that funds regional transit and infrastructure, creating a funding gap without proposed alternatives.

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Bill Summary · SF 1273

Legislative bill overview

SF 1273 proposes to repeal the metropolitan region sales and use tax in Minnesota, which is a dedicated tax that currently funds regional transportation and other public services in the seven-county Twin Cities metropolitan area. The bill would eliminate this revenue source without specifying replacement funding mechanisms. This represents a significant reduction in dedicated regional tax authority.

Why is this important

The metropolitan sales tax generates hundreds of millions of dollars annually for transit systems, road infrastructure, and other regional services that directly affect commuters and communities in the Twin Cities area. Eliminating this tax without replacement funding would force difficult choices about service cuts, alternative revenue sources, or cost-shifting to local governments and users. The bill's sponsors are predominantly from outside the metro area, raising questions about whether metro-area residents would have input on losing this funding.

Potential points of contention

  • Funding gap: No replacement revenue mechanism is identified, leaving unclear how transit, roads, and regional services would be funded going forward
  • Regional vs. statewide interests: Sponsors represent non-metro districts, while the tax primarily affects and funds the seven-county metro region, raising fairness and representation concerns
  • Service disruption: Transit agencies and regional infrastructure projects dependent on this tax would face immediate budgetary crises
  • Tax policy philosophy: Reflects competing views on regional taxation authority and whether dedicated regional taxes are appropriate fiscal tools

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

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