Bills Would Expand MN Tourism and Help Restore State’s Historic Structures
ST. PAUL, Minn. – Senate Tax Chair Ann Rest (DFL-New Hope) said today that the Tax Committee has approved the first two bills that will be included in the Senate tax bill this year.
Chair Rest said the two measures, authored by Senate Majority Leader Kari Dziedzic, passed with bipartisan support. One would help expand tourism in communities across the state, the other would extend a tax credit that supports the restoration and rehabilitation of important, but expensive historic structures across Minnesota.
Expanding Tourism Across Minnesota
The first bill allows lodging businesses to petition a municipality to establish a special “Tourism Improvement District” (TID) within a designated boundary. Lodging businesses within those boundaries will be assessed a fee to raise funds to be used for marketing and event promotion within the TID.
“This bill is an important tool to help promote and expand tourism, which in turn can create jobs and economic development across Minnesota,” said Chair Rest. “During the pandemic, tourism dropped dramatically in many areas. Establishing these special Tourism Improvement Districts would empower lodging businesses raise funds that can be used to attract visitors and regain tourism that was lost due to COVID.”
Investments in Restoring Minnesota’s Historic Buildings
The second bill supported by the committee extends the Historic Structure Rehabilitation Tax Credit, a 20 percent tax credit for developers who restore and rehabilitate historic structures in communities across the state. The current credit expired last July.
“There are important historic structures across the state that mean a lot to their communities, but are expensive to maintain and repair. Often there are few developers willing to take these restorations projects on without this credit,” said Chair Rest. “By extending it, we give developers the incentive to do so, and we create a significant return on our investment by creating jobs and local tax receipts that are important to communities.”
Senator Rest said a University of Minnesota study found that in Fiscal Year 2022, $9.90 was returned to the state for every dollar invested in the credit. The 15 restoration projects studied supported 1,250 jobs and returned $12.5 million in state and local tax receipts. Since its inception in 2011, this credit has generated $5.9 billion in economic activity and created more than 29,000 jobs.