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HF1456 (Legislative Session 94 (2025-2026))

Austin; local sales and use tax authorized.

Related bill: SF1005

AI Generated Summary

This bill, H.F. No. 1456, introduced in the Minnesota House of Representatives by Representative Mueller, proposes authorizing the City of Austin to impose a local sales and use tax of 0.5%. The key provisions of the bill include:

  1. Sales and Use Tax Authorization:

    • The City of Austin may impose a 0.5% sales and use tax, provided voters approve it in an election.
    • The tax will be imposed in addition to any other local sales and use tax.

  2. Use of Tax Revenue:

    • The tax revenue will be used to finance up to $25 million, plus associated bonding costs, for the construction and operation of a law enforcement center.
    • Some funds will also be used for administering and collecting the tax.

  3. Bonding Authority:

    • The city may issue bonds up to $25 million plus issuance costs under Minnesota law to fund the project.
    • These bonds may be secured using any available city funds, including the sales tax revenue.
    • The bonds will not count toward the city's debt limit, and a separate election for bond approval is not required.

  4. Termination of the Tax:

    • The tax will expire at the earlier of:
      • 14 years after it is first imposed, or
      • When the city has collected enough revenue to fully pay for the project and bond-related costs.
    • Any leftover funds after the tax expires will be transferred to the city's general fund.

This bill outlines a mechanism for funding a new law enforcement center in Austin, Minnesota through a temporary local sales tax and bond issuance, contingent on voter approval.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Authorization for Austin to impose a 0.5% sales and use tax."
      ],
      "removed": [],
      "summary": "The bill authorizes the city of Austin to impose a local sales and use tax under the conditions specified in section 297A.99.",
      "modified": [
        "Overrides some subdivision conditions specifically for Austin's tax implementation."
      ]
    },
    "citation": "297A.99"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Separate election requirement for approval of bonds."
      ],
      "summary": "The bill states that a separate election to approve the bonds is not required, notwithstanding the typical requirements under section 475.58.",
      "modified": [
        "Exempts Austin from needing a separate election to approve bonds under certain conditions."
      ]
    },
    "citation": "475.58"
  }
]

Sponsors