It’s been almost six weeks since the Minnesota United Stadium tax and liquor bill were brought to the Minnesota State Legislature and nearly three weeks since it was last debated in a tax committee. So what’s happening with the soccer stadium measure? With less than three weeks left in the 2016 session what is taking so long? Is the bill likely to get passed through this session of the legislature and if so how will that happen?
The short answer is yes, the bill is still likely to pass before the state legislature adjourns for the 2016 session on May 22. The long answer is unfortunately very long and still not altogether clear. But that’s not unusual for any tax bill that snakes its way through the complicated rules of the Minnesota State Senate and House.
The stadium measure would guarantee tax exemption on the property that the stadium sits on – a provision team owner Bill McGuire has said is critical for the stadium to be built. The bill would also give the team exemption from sales tax on construction materials for the stadium. Finally, Minnesota United is also looking for their own liquor license for the venue yet to be built.
Several weeks ago I reported that the bill was entering a crucial week for the stadium tax provision. Like many who have tried to prognosticate how a bill might get through the legislative process, (especially early in the process) I was wrong.
The House tax committees had finished discussing the measure and then laid the bill over. Laying a bill over (setting it aside) is common practice since it’s unusual to approve a single tax bill out of committee by itself. So any single tax bill is almost always added to other measures making it an “omnibus bill” which is then approved and sent on to the floor to be voted on by the entire elected body. At the time of my report, those involved with the legislative process said they believed that was the next step for the stadium bill. But it never happened.
Entering into the 2016 session, members from both parties believed after failing to pass a large omnibus tax bill in 2015, democrats and republicans would hash out a deal this year. Currently, that’s not looking likely. Understanding the process of the legislature is not always easy and can take many tracks. The Minnesota State House and Senate doesn’t really have a great process in place on how they reconcile their omnibus tax bills which make things a bit harder to predict.
Last Friday, Tax Committee Chairman Rep. Greg Davids (R-Preston), talked to the State Legislatures online publication, Session Daily, about issues they were having with a large omnibus bill and the future of the Minnesota United stadium measure.
Davids was asked why they would hear individual tax bills in committee if he didn’t believe they could find an agreement to pass a large bill.
“The reason you hear bills is because you want citizens to be heard,” Davids said. “Now, with the tax bill, we lay them over, very seldom does a bill move on its own. I think we should be listening, and that’s what you do when you hear the bills. Now, how those come out of there [committee], I don’t have that answer yet. I don’t know how that’s going to work. But I will never apologize for hearing a citizen’s idea that they want to move forward. All a bill is a request to be heard, and I don’t think that’s ever a waste of time. How it all comes together, I don’t know.”
While David may not know the exact course, he may have some inklings about how the stadium measure could get passed. When pressed specifically on the stadium bill he responded, “I don’t know, that decision is being made at a higher pay grade than mine. There are tax provisions – it has had its proper hearings. Does it go off by itself? Do we roll it into a conference report somehow? I don’t know that for sure. We’re very creative.”
If that sounds confusing it’s only because it is. The truth is, David probably doesn’t know, nor does anyone understand the exact tack the stadium bill will take. However, it’s believed that the measure still has plenty of bipartisan support and may be added to less controversial local measure. One source reported that it might be tacked onto a bill with widespread outstate support which would make it less controversial and more likely to pass.
There are still many smaller tax bills that will have to get approved this session. They range from a law to update Minnesota’s tax code to changes made by the federal government in 2015 to tax increment finance districts (TIF) that have to get approved or be extended by the legislature this session. There are also sales tax correction issues that need resolution and it could even get tacked onto a bill that would help the southwest Minnesota town of Madelia, where fire took out eight businesses this past winter.
Some or all of these measures could create a small omnibus bill that one source called, Tax Bill Light. The good news is most members of the House and Senate seem to understand there is a sense of urgency with the stadium bill and view it as a 2016 issue that has to be addressed. There is still a belief that there will likely be a path to pass this light tax measure with the soccer stadium bill attached.
Minnesota law says all tax bills must originate in the House. So it is still possible that the Senate may agree to a House tax provision and then send it back for them to concur. Then again, It could get passed straight out of a House committee as a small bill or the republicans and democrats could by some rare chance finally agree on a larger omnibus bill. As a source told NP, there are multiple avenues to pass the bill and supporters of the measure only need to utilize one to get the stadium bill to the floor.
It’s not too late to contact your local representatives to tell them you support the Minnesota United stadium bill.
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