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SF1005 (Legislative Session 94 (2025-2026))

Austin local sales and use tax authorization

Related bill: HF1456

AI Generated Summary

The legislative bill S.F. No. 1005 allows the city of Austin, Minnesota, to introduce a local sales and use tax of 0.5%. The purpose of this tax is to fund up to $25 million, plus additional costs related to bonding, for the construction and operation of a new law enforcement center.

Voter approval is required to implement this tax. Once approved, the city can also issue bonds to finance the construction costs. The tax will end 14 years after it is first implemented or when enough funds have been collected to cover the $25 million in authorized project costs and any bond-related expenses. Any excess funds collected will go into the city's general fund.

The city has the flexibility to end this tax earlier if decided by an ordinance. Additionally, the financial specifics of managing the bond and tax revenue are outlined, ensuring that this allocation does not affect the city's other debt calculations or tax limitations.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 05, 2025HouseFloorActionIntroduction and first reading
February 05, 2025SenateFloorActionIntroduction and first reading
February 05, 2025HouseFloorActionReferred toTaxes
February 05, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Authorization for the city of Austin to impose a local sales and use tax."
      ],
      "removed": [],
      "summary": "The bill allows for the imposition of a local sales and use tax in Austin, overriding certain subdivisions of section 297A.99.",
      "modified": [
        "Adjusted regulations concerning the imposition, administration, collection, and enforcement of local tax."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivisions 1, 2, and 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Austin's specific use for sales tax revenue diverges from certain requirements in section 297A.99, subdivision 3.",
      "modified": [
        "Specifies revenue use for law enforcement center, diverging from general revenue use requirements."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the expiration conditions for the sales tax under section 297A.99, subdivision 12.",
      "modified": [
        "Sets expiration criteria based on time or project funding sufficiency."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 12"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exempts bonds related to the tax from general levies under section 475.61.",
      "modified": [
        "Excludes bond-related levies from levy limitations."
      ]
    },
    "citation": "475.61",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exempts the Austin bonds from the separate election requirement of section 475.58.",
      "modified": [
        "Removes the requirement for a separate election for bond approval."
      ]
    },
    "citation": "475.58",
    "subdivision": ""
  }
]

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