Purpose

• Authorizes the city of Coon Rapids to adopt a local sales and use tax, if approved by voters, to fund designated city projects.

Key Provisions

• Subdivision 1 — Sales and use tax authorization

  • The city may impose a local sales and use tax of up to one-half of one percent (0.5%), for the purposes described in subdivision 2, if approved by voters.
  • The tax is administered, collected, and enforced under Minnesota Statutes section 297A.99, as amended, and runs in addition to other local taxes or taxes created by other laws.
  • The tax is only in effect if voters approve it in the required election process.

• Subdivision 2 — Use of revenues

  • Revenues from the tax must be used by the city to pay for specified projects, including the costs of collecting and administering the tax and paying debt service on bonds issued to finance the projects.
  • Projects funded include:
  • Renovation and expansion of the police department and the city center facility, including city hall and the civic center.
  • Construction of a new community center and expansion of the Coon Rapids Ice Center.

• Subdivision 3 — Bonding authority

  • The city may issue bonds under Minnesota Statutes chapter 475 to finance part or all of the project costs, with voter approval as required.
  • The total principal amount of bonds cannot exceed $80,000,000, plus an amount to cover the costs of issuing the bonds.
  • Bonds may be paid from or secured by any city money, including revenues from the tax.
  • Bond issuance is not subject to certain debt and levy limitations in other statutes (e.g., sections 275.60 and 275.61), and the levy to pay the bonds is not subject to levy limits.
  • A separate election to approve the bonds under section 475.58 is not required.

• Subdivision 4 — Termination of taxes

  • The tax expires no later than 25 years after it is first imposed, or when the city council determines the tax revenues are sufficient to pay the project costs approved by voters plus the costs of issuing any bonds, whichever comes first.
  • Any remaining money after costs are paid may be placed in the city’s general fund, subject to statutory rules.
  • The city may terminate the tax earlier by ordinance.

What Changes This Law

• Creates a local option for the City of Coon Rapids to fund major public facilities and services through a dedicated 0.5% sales and use tax, subject to voter approval.
• Establishes a mechanism to issue up to $80 million in bonds (plus issuance costs) to finance these projects, with debt repayment supported by tax revenues and city funds, and clarifies debt and levy treatment under state law.
• Sets a formal sunset/termination framework for the tax and outlines how any excess proceeds would be handled.

Significant Provisions and Impacts

• Enables significant capital projects for public safety, civic functions, and community amenities in Coon Rapids.
• Allows the city to incur bonded debt beyond typical debt limits, with voter approval and without requiring a separate bond election.
• Ties project funding to a defined revenue source (the 0.5% tax) and provides an explicit sunset timeline.

Relevant Terms - local sales and use tax - one-half of one percent (0.5%) - City of Coon Rapids - voters / election - Minnesota Statutes section 297A.99 - subdivision 3 - bonding authority - Minnesota Statutes chapter 475 - debt service - collection and administration - police department - city center facility - city hall - civic center - community center - Coon Rapids Ice Center - aggregate principal amount - not subject to debt limitations - levy limitations - general fund - termination by ordinance - sunset - separate election not required - costs of issuing bonds