Minnesota SF 3689: City of Austin local sales and use tax authorization provision

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; sales and use; authorizing a local sales and use tax in the city​
1.3 of Austin.​
1.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.5 Section 1. CITY OF AUSTIN; TAXES AUTHORIZED.​
1.6 Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes,​
1.7 section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters​
1.8 at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the​
1.9 city of Austin may impose by ordinance a sales and use tax of one-half of one percent for​
1.10 the purpose specified in subdivision 2. Except as otherwise provided in this section, the​
1.11 provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,​
1.12 collection, and enforcement of the tax authorized under this subdivision. The tax imposed​
1.13 under this subdivision is in addition to any local sales and use tax imposed under any other​
1.14 special law.​
1.15 Subd. 2.Use of sales and use tax revenues.Notwithstanding Minnesota Statutes, section​
1.16 297A.99, subdivisions 2, paragraph (d), and 3, paragraph (b), the revenues derived from​
1.17 the tax authorized under subdivision 1 must be used by the city of Austin to pay the costs​
1.18 of collecting and administering the tax, and to finance up to $28,400,000, plus associated​
1.19 bonding costs, for the following, in connection with a law enforcement center: (1) the​
1.20 previous purchase of land; (2) utility, site work, and design services; and (3) construction​
1.21 and maintenance.​
1.22 Subd. 3.Bonding authority.(a) The city of Austin may issue bonds under Minnesota​
1.23 Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The​
1​Section 1.​
26-06919 as introduced​02/16/26 REVISOR EAP/MG​
SENATE​
STATE OF MINNESOTA​
S.F. No. 3689​NINETY-FOURTH SESSION​
(SENATE AUTHORS: DORNINK)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​6338​02/19/2026​
Referred to Taxes​

2.1 aggregate principal amount of bonds issued under this subdivision may not exceed​
2.2 $28,400,000 for the project listed in subdivision 2, plus an amount to be applied to the​
2.3 payment of the costs of issuing the bonds. The bonds may be paid from or secured by any​
2.4 money available to the city, including the tax authorized under subdivision 1. The issuance​
2.5 of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and​
2.6 275.61.​
2.7 (b) The bonds are not included in computing any debt limitation applicable to the city,​
2.8 and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest​
2.9 on the bonds is not subject to any levy limitation. A separate election to approve the bonds​
2.10 under Minnesota Statutes, section 475.58, is not required.​
2.11 Subd. 4.Termination of taxes.Subject to Minnesota Statutes, section 297A.99,​
2.12 subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years​
2.13 after the tax is first imposed; or (2) when the city determines that the amount received from​
2.14 the tax is sufficient to pay $28,400,000 in project costs authorized under subdivision 2, plus​
2.15 an amount sufficient to pay the costs related to issuance of any bonds authorized under​
2.16 subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota​
2.17 Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining after payment​
2.18 of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,​
2.19 section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax​
2.20 imposed under subdivision 1 may expire at an earlier time if the city so determines by​
2.21 ordinance.​
2.22 EFFECTIVE DATE.This section is effective the day after the governing body of the​
2.23 city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,​
2.24 subdivisions 2 and 3.​
2​Section 1.​
26-06919 as introduced​02/16/26 REVISOR EAP/MG​