Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF2355

Introduced
3/1/23  

Caption

Rice County local sales and use tax imposition authorization

Impact

If enacted, SF2355 would significantly impact the revenue structure of Rice County, allowing it to generate funds dedicated to public safety infrastructure. The tax revenues would facilitate collecting and administering costs and contribute to financing the proposed public safety facility through bond issuances. Notably, the new tax framework would not contribute to the county's overall debt limitations, as it offers a mechanism that enables the county to fund essential projects without the restrictions of traditional financing methods.

Summary

Senate File 2355 introduces an act authorizing Rice County to impose a local sales and use tax. The legislation allows the county to implement a tax of three-eighths of one percent, pending approval by voters at a general election. This tax, in addition to any existing local sales and use taxes, is aimed at generating revenue specifically for the construction of a public safety facility in the county, with a projected budget of up to $48,000,000. This financial initiative includes provisions for covering the costs related to tax collection as well as the administration of the tax itself.

Contention

The bill's introduction has sparked discussions regarding self-imposed taxation and local governance in Rice County. Proponents argue that establishing a dedicated fund for public safety enhances community infrastructure and readiness, while critics may raise concerns about the implications of taxing residents further, especially in economic times where such burdens could be contentious. Additionally, the requirement for voter approval adds a democratic element to the process, allowing residents to voice their opinions regarding local tax structures.

Companion Bills

MN HF2381

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

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REAL ID implementation law repealed.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 SF32

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

MN HF20

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

MN SF4803

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

MN HF4840

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

MN HF5040

Pensions supplemental budget bill.