Senate File 765 laid over after sponsor explains change to 'metropolitan area' for tax rules

Senate File 765, presented March 18 to the Minnesota Senate Taxes Committee, would change how two tax provisions define the metropolitan area by replacing references to counties with the area served by the Metropolitan Council. Senator Draheim introduced the bill and said the change was intended to align tax definitions with Met Council boundaries and that the bill’s effective date is after June 30, 2025.

The bill’s sponsor, Senator Draheim, told the committee the measure “modifies the definition of metropolitan area for 2 different taxes” and that the changes replace the term “counties” with the Met Council area in several sections of statute. He noted there are “5 portions of cities that are partially in and partially out, of the Met Council area,” and that part of the taxes currently go to the Met Council.

Committee members asked no questions and no outside testimony was recorded. Chair Reisz said there was no recorded opposition and the bill was laid over. No formal vote on final passage was taken; the committee instead laid the bill over for further consideration.

The bill text, as described in committee, makes technical edits to definitions in multiple sections and sets an effective date after June 30, 2025. The committee did not take additional action beyond laying the measure over.

The file will remain before the committee as legislators review statutory language and any downstream effects when alignment is made to the Met Council boundary rather than county lines.