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Informational hearing: coalition proposes constitutional amendment to raise dedicated housing funding via 3/8-cent sales tax
Summary
Senator Mohammed and the Our Future Starts at Home coalition presented an informational proposal for a constitutional amendment to dedicate long-term revenue for housing. The plan would raise the sales tax by 3/8 of 1% to generate nearly $500 million annually for 25 years, allocating funds among homeownership, homelessness prevention, and rental
Senator Mohammed convened an informational hearing to present a coalition-backed proposal for a constitutional amendment that would establish dedicated, long-term state funding for housing across Minnesota.
Senator Mohammed framed the proposal as a way to move the state from short-term, unpredictable appropriations to stable revenue. “Without dedicated funding…we remain stuck in a cycle of emergency response rather than addressing the root causes of housing instability and homelessness,” she said. The amendment would increase the state sales tax by three-eighths of 1 percent and direct funding to three broad uses: homeownership supports, a community housing stability fund (rental assistance, shelter funding, legal aid), and a rental opportunity fund…
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