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Bill would form task force to inventory taxes and fees tied to housing costs

Minnesota Senate Taxes Committee · April 23, 2026
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Summary

Senate File 4749 proposes a 16‑member task force to catalog state and local taxes and fees imposed on new residential development, analyze cumulative effects, and recommend ways to reduce soft costs while maintaining services; sponsors suggested using the Contractor Recovery Fund to cover an estimated $176,000 study cost.

Sponsor Senator Webb described Senate File 4749 as a response to rising housing costs that focuses on the so‑called "soft costs" — taxes and fees that add to the price of new housing. The bill would create a 16‑member task force including legislative, agency, local government, tribal, builder and nonprofit housing representation, staffed by the Legislative Coordinating Commission, and require a report due by September 15, 2027.

The legislative budget office estimated the task force's study cost at about $176,000. Sponsors suggested those expenses could be drawn from the Contractor Recovery Fund, which they said currently holds several million dollars and is used for industry‑related research and programs. Committee members urged preparing a finance committee amendment to specify the funding source if the bill advances.

The committee recommended the bill pass and be referred to the Committee on Finance for further consideration.