MN Dems Push For Higher Statewide Sales Tax

ST. PAUL, MN —Minnesota Democrats are pushing for an increase in the statewide sales tax to fund housing for low-income residents.

The proposal would increase the sales tax rate by three-eighths of one percent. The money raised through the tax would go to creating the "homeownership opportunity fund," "community and household stability fund," and the "rental opportunity fund."

The current state sales tax rate is 6.875 percent. Counties and municipalities also have their own sales taxes.

The change to the state sales tax would have to come through a change in the Minnesota Constitution. Voters would approve or reject the proposal at the ballot box in November.

The proposed amendment will show up on the ballot as follows:

"Shall the Minnesota Constitution be amended to remove barriers to homeownership,
to make our rental housing safe and affordable, and to protect our vulnerable households
and communities from displacement and homelessness by increasing the sales and use tax
rate beginning July 1, 2025, by three-eighths of one percent on taxable sales until the year
2050?

Yes

No

The measure will face fierce opposition from Republicans, who hope to regain the Minnesota House and Senate next year. But Democrats keep their trifecta over state government for at least one more session.