Minnesota House Approves Controversial Omnibus Housing Finance Bill, Including Metro Sales Tax Increase.

The Minnesota House has passed an omnibus housing finance bill, HF2335, which includes a proposal for a 0.25% sales tax increase to be imposed on the seven-county metro area. The tax is expected to bring in $353 million during the 2024-25 biennium and $391.2 million for the 2026-27 biennium. The bill also includes a $150 million appropriation to support close to 4,000 new homebuyers through a first-generation homebuyer down payment assistance fund, as well as significant spending on various housing programs and initiatives. Republican opponents of the bill argue that the sales tax increase would impose an undue burden on taxpayers given the state's current $17.5 billion budget surplus. The bill will now be considered by the Senate.

We will stay tuned to see what happens next and will definitely stay on top of any Down Payment Assistance considerations for our borrowers in the great state of Minnesota!

Link to the announcement: https://www.house.mn.gov/sessiondaily/Story/17934