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Committee hears extension of Hennepin, Ramsey mortgage‑registry tax to fund cleanups
Summary
House File 34‑20 would extend through 2036 the limited authority allowing Hennepin and Ramsey counties to levy a small mortgage‑registry/deed tax to fund Environmental Response Funds used for brownfields cleanup, housing and economic development; testimony highlighted prior leverage and local benefits.
House File 34‑20, introduced as a bipartisan measure, would extend the authority for Hennepin and Ramsey counties to impose a 0.01% mortgage registry/deed tax on most recorded transactions through Dec. 31, 2036. Sponsors said revenue supports each county’s Environmental Response Fund (ERF), a locally administered brownfields remediation and redevelopment program.
Representative Lee and Representative Nadeau described the program’s history and results. Representative Nadeau noted the authority’s origins in 1997 and said Hennepin County has distributed more than $50 million to eligible projects, including cleanup of contaminated commercial sites and lead abatement that enabled affordable housing renovations. Testimony highlighted the program’s broad eligibility for private developers, nonprofits, HRAs, and economic development authorities.
Josh Olson, director of community economic development for Ramsey County, gave examples of projects made feasible by the ERF. He cited The Heights, a 112‑acre redevelopment of the Hillcrest Golf Club site in Saint Paul, where a $300,000 ERF grant helped leverage additional remediation funding and unlock a large mixed‑use redevelopment that will include affordable housing and industrial space.
Mary Finch, a Hennepin County supervising environmentalist, said the ERF remains oversubscribed; Hennepin reported more than 6,000 sites of concern, representing 22% of the state's potential investigation and cleanup sites. Members asked technical questions (for example, whether recorded refinancings trigger the tax); nonpartisan staff indicated most recorded mortgages are subject to the tax but offered to confirm specifics.
Representative Lee renewed her motion and HF 34‑20 was laid over for possible inclusion in the 2026 omnibus tax bill.
What’s next: The bill was laid over; counties and city partners will continue to highlight leveraged redevelopment outcomes as the legislature considers the 2026 tax package.
