WeVote
Log In

Bill

Bill

HF 3361

Wayzata; food and beverage tax imposition authorized.

2025-2026 Regular Session Introduced by Patty Acomb

Wayzata can approve a local up-to-1% tax on food and beverage sales to fund parks, public safety, and downtown development, with either city or state administration.

Introduction and first reading, referred to Taxes
#citiesandtowns-specific #foodandnutrition #taxation-salesanduse
0
WeVote Research Nonpartisan
Bill Summary · HF 3361

Legislative Bill Summary – HF3361 (2025-2026, Minnesota)

Title

Wayzata; food and beverage tax imposition authorized

Purpose and intent

Authorizes the City of Wayzata to impose a local sales tax (up to 1%) on gross receipts from the sale of food and beverages by restaurants or places of refreshment located within Wayzata. The tax may also cover the on-sale of intoxicating liquor and fermented malt beverages. The bill sets out how proceeds may be used and provides administration options, including potential state collection.

Key provisions

1) Authority to impose tax

  • Wayzata may, by ordinance, impose a local sales tax of up to 1% on gross receipts from sales of food and beverages by restaurants or places of refreshment located within the city.
  • The definition of "food and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.

2) Use of tax proceeds

Proceeds may be used for:
- (a)(1) Operation, maintenance, and capital improvements for city parks.
- (a)(2) Operation and capital improvements related to public safety.
- (a)(3) Costs related to downtown business attraction and retention.

3) Authorized capital expenditures

  • Proceeds may cover debt service or other capital financing for improvements to city parks or public safety facilities.

4) Collection, administration, and enforcement

  • The city may enter into an agreement with the Minnesota Department of Revenue (DOR) to administer, collect, and enforce the tax.
  • If the city and DOR agree, the collection, administration, and enforcement provisions of Minnesota Statutes, section 297A.99, apply.

5) Effective date

  • The section becomes effective the day after Wayzata’s governing body and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3 (a standard compliance trigger for local tax changes).

Affected parties

  • City of Wayzata: Authorized to enact the tax via city ordinance; would administer or arrange administration/collection if not handled by the state.
  • Businesses affected: Restaurants and places of refreshment selling food and beverages within Wayzata (including establishments selling intoxicating liquor and fermented malt beverages on-site).
  • Residents and visitors: Tax may affect prices on dine-in and possibly take-out food/beverage purchases within the city.
  • City finances and projects: Potentially increased revenue earmarked for parks, public safety, and downtown economic development.

Procedural/timeline notes

  • The bill was introduced and referred to Taxes on Feb 17, 2026.
  • Sponsors include a primary sponsor with a co-sponsor (Patty Acomb).
  • If enacted, the tax would require local ordinance adoption and compliance steps under state statutes before taking effect.

Summary of impact

HF3361 provides Wayzata with a local option to levy up to 1% on sales of food and beverages (including on-sale alcohol) to fund city parks, public safety, and downtown business development. It also creates flexibility for administration—either via direct city administration or through an agreement with the Minnesota Department of Revenue. The measure does not require automatic tax imposition; it empowers the city to decide, by ordinance, whether to implement the tax and how to allocate proceeds to listed capital and operating needs.

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

Sign in to ask a question.