Minneslate Logo

SF2657 (Legislative Session 94 (2025-2026))

City of St. Paul local sales tax extension provision

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify existing legislation related to the local sales tax authority in the city of St. Paul, Minnesota. This involves extending the expiration date of the city’s ability to impose a local sales tax.

Main Provisions

  • Extension of Sales Tax Authority: The bill extends the expiration date for the authority of St. Paul to impose a local sales tax from December 31, 2042, to December 31, 2060, unless an earlier date is decided by the city through an ordinance.
  • Use of Remaining Funds: After completing the approved projects and settling any financial obligations, any leftover funds may be transferred to St. Paul’s general fund.
  • Tax Expiration Conditions: A specific provision allows for the local sales tax to expire either 20 years after it is first imposed or once enough revenue has been generated to cover project costs and bond-related expenses, whichever comes first. The city council can also decide to end the tax earlier through an ordinance.
  • Voter Approval for Projects: The revenue from the sales tax must be used for voter-approved projects, complying with Minnesota Statutes section 297A.99.

Significant Changes

  • The bill specifically amends the previous expiration timeline, providing a lengthy extension for the city’s sales tax authority which could potentially allow more time for collecting funds to support local projects.

Relevant Terms

  • Local sales tax
  • Taxing authority
  • Expiration of taxing authority
  • St. Paul
  • Ordinance
  • General fund
  • Financial obligations
  • Voter-approved projects
  • Minnesota Statutes section 297A.99

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the requirement for voter approval of projects funded by local sales tax under section 297A.99, subdivision 3.",
      "modified": [
        "Clarifies the conditions under which tax funds must be handled upon expiration of taxing authority."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the procedure for the termination of a local tax and the proper allocation of remaining funds under section 297A.99, subdivision 12.",
      "modified": [
        "Specifies how remaining funds are to be handled on tax expiration."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 12"
  }
]

Sponsors