HF4583
Audubon; city authorized to impose local sales and use tax.
Legislative Session 94 (2025-2026)
Related bill: SF4478
AI Generated Summary
Purpose
Authorize the city of Audubon to impose a local sales and use tax of 0.5% (one-half percent) if approved by voters, in order to fund a Fire Hall Project and related costs, and to cover administration and collection expenses.
Key Provisions
Local tax authorization
- Audubon may impose a 0.5% local sales and use tax for the Fire Hall Project, subject to voter approval as required by law.
- The tax is in addition to any other local sales and use taxes that may exist.
Use of tax revenues
- Revenues from the tax must be used to pay the costs of collecting and administering the tax.
- Revenues may also be used to finance up to $3,000,000 plus associated bonding costs for the Fire Hall Project.
Bonding authority
- The city may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the Fire Hall Project costs.
- The total principal amount of bonds cannot exceed $3,000,000 plus issuance costs.
- Bonds may be paid from, or secured by, money available to the city, including tax revenue from the new tax.
- Bond issuance is not subject to certain debt and levy limits (specific statutes referenced).
Relationship to debt and levies
- The bonds are not included in the city’s debt limit.
- Any levy of taxes under the referenced statutes to pay bond principal and interest is not subject to levy limitations.
- A separate election to approve the bonds under some statutes is not required.
Sunset / termination
- The tax expires at the earlier of:
- 20 years after the tax is first imposed, or
- when the city determines the collected amount is sufficient to pay project costs (and related bond costs including interest) as approved by voters.
- Remaining funds after paying allowed costs are placed in the city’s general fund.
- The tax may expire earlier by city ordinance.
Significant Changes to Law
- Creates a new local option tax for the City of Audubon to fund a Fire Hall Project.
- Allows the city to issue bonds without a separate bond election under certain authorities and limits debt impact by excluding bonds from the debt limit.
- Dedicates tax revenue first to collection/administration costs and then to financing the Fire Hall Project, with a defined cap on bonded debt.
- Establishes a 20-year sunset for the new tax, with the possibility of an earlier termination by city action.
Practical implications
- Local control: Voters in Audubon must approve the tax (and thus the project) before it takes effect.
- Financing: The project can be funded through a combination of tax revenues and bonds, with a defined cap and specific debt/levy treatment.
- Timeframe: The tax has a defined lifespan (up to 20 years) unless terminated earlier by ordinance.
Relationship to Existing Law
- The new tax operates under Minnesota statutes governing local sales taxes and voter-approved financing, including sections related to taxation, bonding, debt limits, and sunset provisions.
- It remains in addition to any other local taxes unless specifically stated otherwise.
Relevant terms - Audubon - local sales and use tax - 0.5% / one-half percent - Fire Hall Project - revenues - administration and collection costs - bonding / bonds - Minnesota Statutes chapter 475 - debt limit - levy limitations - 297A.99 subdivision 3 - 475.58 - 275.60 - 275.61 - sunset / termination - general fund
Bill text versions
- Introduction PDF PDF file
Upcoming committee meetings
- Taxes on: April 22, 2026 10:15
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Authorizes a local sales and use tax (0.5%) for the Fire Hall Project, using 477A.016 as the statutory basis."
],
"removed": [],
"summary": "This act relies on Minnesota Statutes section 477A.016 to authorize a local sales and use tax for the City of Audubon, with voter approval required under 297A.99.",
"modified": [
"The bill does not modify 477A.016 itself; it uses 477A.016 to authorize and implement a local tax."
]
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [
"Authorizes issuance of bonds under Minnesota Statutes chapter 475 to finance all or a portion of the Fire Hall Project costs, up to the stated cap."
],
"removed": [],
"summary": "Bonding authority under 297A.99 subdivision 3 to finance project costs via bonds under chapter 475.",
"modified": [
"Establishes a debt-financing mechanism related to the local tax authorization."
]
},
"citation": "297A.99",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Incorporates the necessity of voter approval for imposing the local sales and use tax."
],
"removed": [],
"summary": "References voter approval requirements for the local option tax under 297A.99 subdivision 1, paragraph a.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 1 paragraph a"
},
{
"analysis": {
"added": [
"Specifies voter involvement or approval aspects tied to the bond authorization referenced in subdivision 3, paragraph a."
],
"removed": [],
"summary": "Bond approval context under 297A.99 subdivision 3, paragraph a.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3 paragraph a"
},
{
"analysis": {
"added": [
"Imposes a sunset on the tax: expires at the earlier of 20 years or once funds are sufficient to pay project costs plus bond costs."
],
"removed": [],
"summary": "Expiration of the tax after 20 years or sooner as funded under 297A.99 subdivision 12.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 12"
},
{
"analysis": {
"added": [
"Requires any remaining money after costs to be placed in the city’s general fund."
],
"removed": [],
"summary": "Disposition of any remaining funds after termination per 297A.99 subdivision 3 paragraph f.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3 paragraph f"
},
{
"analysis": {
"added": [],
"removed": [
"Exempts bond-related debt from the levy limitations in 275.60."
],
"summary": "Bond debt not subject to levy limitations under 275.60.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Exempts debt service from levy limitations in 275.61."
],
"summary": "Bond debt not subject to levy limitations under 275.61.",
"modified": []
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [
"Confirms that levies to pay principal and interest on bonds are exempt from levy limits under 475.61."
],
"removed": [],
"summary": "Levy of taxes under 475.61 to pay debt service is not subject to levy limitations.",
"modified": []
},
"citation": "475.61",
"subdivision": ""
},
{
"analysis": {
"added": [
"Eliminates the need for a separate bond election under 475.58."
],
"removed": [],
"summary": "No separate election required to approve the bonds under 475.58.",
"modified": []
},
"citation": "475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Minnesota Statutes chapter 475 provides the bonding framework referenced by the bill.",
"modified": []
},
"citation": "475",
"subdivision": ""
}
]Progress through the legislative process
In Committee