The Minnesota Senate Taxes Committee sent a tax bill to the Senate floor that could help save HCMC while also making Minnesota the first state to impose a social media tax.

The HCMC funding would come from shifting an existing 0.15% sales tax, mostly dedicated to paying off the Twins ballpark, to a “health care tax,” with most of the revenue going to HCMC and North Memorial Medical Center.

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“We’re going to install a new tax to replace that one,” said Senate Taxes Committee Chair Ann Rest. “It is a health care tax, and the rate is going to be a quarter cent (.25%)… This bill is focused mostly on the health care hospitals in Hennepin County, notably HCMC, a level one trauma center.”

There will also be funding for North Memorial Medical Center that must all be dedicated to “uncompensated care,” essentially for people who come to the hospital without insurance. HCMC will have more flexibility in how it spends its revenue, including on physical upgrades and hospital upkeep.

“I think you’re going to find a mixed reaction amongst some of the Republicans in my caucus,” Sen. Bill Weber, R-Luverne, told 5 EYEWITNESS NEWS about the possible tax increase. But, he says, his members also recognize the importance of HCMC.

“The reality of it is that HCMC has an impact on much more than just the Minneapolis area. Many of their specific services are relied on by hospitals in rural areas.”

Weber says he plans to vote against the bill and notes Democrats don’t need any Republican votes to pass the tax bill in the Senate, where Democrats have a one-vote majority. Any tax increase aimed at HCMC will need at least one Republican vote in the tied Minnesota House.

The Senate tax bill also includes a social media tax that would range from 10 cents to 50 cents per user, depending on the platform’s size. It would be imposed on the social media companies, not individuals who use the platforms.

“This tax only affects the 14 largest social media platforms in the world that do business here in Minnesota,” Rest said. “This tax will generate millions in needed revenue for our state, and importantly, not one single Minnesotan will pay a penny of it. Not one cent.”

Weber, the Republican lead on the tax committee, views that as wishful thinking.

“I’m not buying that argument whatsoever,” he said. “There is no tax on businesses that the consumer doesn’t ultimately pay.”

It’s not clear when the Senate will take up the tax bill on the floor.

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