Minnesota 2025 2025-2026 Regular Session

Minnesota Senate Bill SF1005 Introduced / Bill

Filed 02/03/2025

                    1.1	A bill for an act​
1.2 relating to local taxes; authorizing a local sales and use tax in the city of Austin.​
1.3BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.4 Section 1. CITY OF AUSTIN; TAXES AUTHORIZED.​
1.5 Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes,​
1.6section 297A.99, subdivisions 1, 2, and 3a, or 477A.016, or any other law, ordinance, or​
1.7city charter, and if approved by the voters at an election as required under Minnesota Statutes,​
1.8section 297A.99, subdivision 3, the city of Austin may impose by ordinance a sales and use​
1.9tax of one-half of one percent for the purpose specified in subdivision 2. Except as otherwise​
1.10provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the​
1.11imposition, administration, collection, and enforcement of the tax authorized under this​
1.12subdivision. The tax imposed under this subdivision is in addition to any local sales and​
1.13use tax imposed under any other special law.​
1.14 Subd. 2.Use of sales and use tax revenues.Notwithstanding Minnesota Statutes, section​
1.15297A.99, subdivision 3, paragraphs (b) and (c), the revenues derived from the tax authorized​
1.16under subdivision 1 must be used by the city of Austin to pay the costs of collecting and​
1.17administering the tax, and to finance up to $25,000,000, plus associated bonding costs, for​
1.18the construction and operation of a law enforcement center.​
1.19 Subd. 3.Bonding authority.(a) The city of Austin may issue bonds under Minnesota​
1.20Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The​
1.21aggregate principal amount of bonds issued under this subdivision may not exceed​
1.22$25,000,000 for the project listed in subdivision 2, plus an amount to be applied to the​
1​Section 1.​
25-00910 as introduced​12/16/24 REVISOR EAP/BM​
SENATE​
STATE OF MINNESOTA​
S.F. No. 1005​NINETY-FOURTH SESSION​
(SENATE AUTHORS: DORNINK)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​02/06/2025​
Referred to Taxes​ 2.1payment of the costs of issuing the bonds. The bonds may be paid from or secured by any​
2.2funds available to the city, including the tax authorized under subdivision 1. The issuance​
2.3of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and​
2.4275.61.​
2.5 (b) The bonds are not included in computing any debt limitation applicable to the city,​
2.6and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest​
2.7on the bonds is not subject to any levy limitation. A separate election to approve the bonds​
2.8under Minnesota Statutes, section 475.58, is not required.​
2.9 Subd. 4.Termination of taxes.Subject to Minnesota Statutes, section 297A.99,​
2.10subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 14 years​
2.11after the tax is first imposed; or (2) when the city determines that the amount received from​
2.12the tax is sufficient to pay $25,000,000 in project costs authorized under subdivision 2, plus​
2.13an amount sufficient to pay the costs related to issuance of any bonds authorized under​
2.14subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota​
2.15Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment​
2.16of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,​
2.17section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax​
2.18imposed under subdivision 1 may expire at an earlier time if the city so determines by​
2.19ordinance.​
2.20 EFFECTIVE DATE.This section is effective the day after the governing body of the​
2.21city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,​
2.22subdivisions 2 and 3.​
2​Section 1.​
25-00910 as introduced​12/16/24 REVISOR EAP/BM​