State sales tax rate increased, expiration for certain laws applicable to local sales taxes provided, and revenue dedicated to local government aid distributions.

HF 2973 increases Minnesota's state sales tax rate from 6.5% to 7%, effective after September 30, 2025. This change affects businesses collecting sales tax on retail transactions within the state, with the new revenue dedicated specifically to funding local government aid distributions. The bill also provides an expiration date for certain existing local sales tax laws. The measure amends Minnesota Statutes to redirect these tax revenues to local governments rather than the general fund, without altering the tax base or adding new exemptions.