Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF2717

Introduced
3/8/23  

Caption

Beltrami County authorization to impose a local sales and use tax

Impact

This legislation has the potential to cause notable changes to how local governance can fund major projects through localized tax policies. By enabling the county to enact a local sales tax, it provides a mechanism for sustaining necessary capital projects without overreliance on state or federal funds. The arrangement of financing for the jail indicates a shift toward utilizing user-generated tax revenue directly where the demand for public services lies. Local taxpayers would be directly influenced by the taxation introduced under this bill, potentially resulting in enhanced local infrastructure and community safety.

Summary

SF2717 authorizes Beltrami County to impose a local sales and use tax of five-eighths of one percent, contingent upon voter approval at a general election. The tax revenue is designated for financing construction of a new county jail, with a cap of $80,000,000. This bill allows the county to address funding requirements for infrastructure significantly while relying on local tax sources to do so. The provisions outlined also indicate that the tax supersedes previous laws restricting such local taxes, hence expanding the county's authority over municipal financial strategies.

Contention

While proponents argue that the authorized tax will provide much-needed funds for essential infrastructure such as the county jail, some critics express concerns about the burden of increased taxes on local residents. Contention arises surrounding local control and the implications of financial responsibilities that fall on the taxpayers. This dichotomy of opinion could result in divisive perspectives during the election where voter approval is sought. Additionally, the bypassing of certain limitations traditionally imposed on bond issuances in Minnesota is likely to spark further discourse regarding fiscal responsibility and accountability mechanisms.

Financial_aspects

The bill also allows for the issuance of bonds that are not subject to computing debt limitations, thus offering a flexible financial strategy for the county. This provision can be perceived both positively and negatively; supporters argue it allows quicker access to capital, while opponents might see it as a reckless approach to county borrowing. The financial independence afforded by this bill to Beltrami County signifies a major shift in local fiscal policy, with long-lasting implications on their economic landscape.

Companion Bills

MN HF2227

Similar To Beltrami County; local sales and use tax imposition authorized.

Previously Filed As

MN HF2227

Beltrami County; local sales and use tax imposition authorized.

MN HF2757

Taxation; standard deduction calculation and statewide local housing aid definitions modified, and Beltrami County local sales and use tax authorization amended.

MN SF2355

Rice County local sales and use tax imposition authorization

MN SF1159

Stearns County authorization to impose a local sales and use tax

MN SF1282

Winona county authorization to impose a local sales and use tax

MN SF798

Chanhassen local sale and use tax imposition authorization

MN SF2785

Blackduck local sales and use tax imposition authorization

MN SF2302

Jackson County sales and use tax imposition authorization

MN SF2907

St. Joseph authorization to impose a local sales and use tax

MN SF2917

Dilworth authorization to impose a local sales and use tax

Similar Bills

MN HF916

Tax expenditure provisions modified, and past tax expenditure purpose statements provided.

MN HF3284

REAL ID implementation law repealed.

MN SF3492

REAL ID implementation law repealer

MN HF20

Wage credits modified and reimbursement provided, general fund transfers authorized, unemployment insurance aid provided, report required, and money appropriated.

MN SF32

Wage credits modification and reimbursement provision; unemployment insurance aid establishment and appropriation

MN HF4840

Refundable sales and use tax exemptions provided for independent school district construction projects.

MN SF4803

Various independent school district construction projects sales and use tax exemption provision and appropriation

MN HF5267

Governor's budget bill for early childhood programs; child welfare and child care licensing provisions modified; technical changes to early childhood law made; Department of Children, Youth, and Families recodification updated; and money appropriated.