SF4181
Douglas County authorization to impose a local sales tax
Legislative Session 94 (2025-2026)
Related bill: HF3847
AI Generated Summary
Purpose
- Authorize Douglas County to impose a local sales and use tax to fund the construction of a new library, contingent on voter approval.
Main Provisions
Tax authorization:
- Douglas County may impose a local sales and use tax of up to 0.25% (one quarter of one percent).
- The tax requires voter approval as required by state law and would be in addition to any other local taxes.
Use of tax revenues:
- Revenues must be used to pay the costs of collecting and administering the tax.
- Revenues may finance up to $18.5 million, plus bonding costs, to pay for construction of the new library.
Bonding authority:
- The county may issue bonds under Minnesota Statutes chapter 475 to fund all or part of the library project.
- The total bond principal may not exceed $18.5 million plus issuance costs.
- Bonds may be paid from any money available to the county, including tax revenues.
- Bond issuance is not subject to certain debt-standards statutes (275.60 and 275.61) and bonds are not included in the county’s debt limit.
- Any levy to pay bond principal and interest is not subject to levy limits.
- A separate election to approve the bonds is not required.
Termination and sunset:
- The tax expires at the earlier of 10 years after first imposition or when the county board determines sufficient revenue has been collected to pay project costs plus bond costs (including interest).
- Any remaining funds after paying approved costs must be placed in the county general fund.
- The tax may be terminated earlier by ordinance if the county decides to do so.
Administration and relationship to other laws:
- The tax follows the standard rules for imposition, administration, collection, and enforcement under Minnesota law.
- The tax is separate from and in addition to any other local sales and use taxes.
Significant Changes to Existing Law
- Introduces a new local sales and use tax authority for Douglas County specifically for funding a library project.
- Allows up to $18.5 million in bond financing plus issuance costs without requiring a separate debt-levy election, and waives certain debt-related statutory constraints.
- Establishes a defined sunset/termination framework for the tax and directs remaining funds to the county general fund if applicable.
How It Works in Practice (Overview)
- Voters in Douglas County would decide whether to approve the tax.
- If approved, the county collects the tax and uses revenues to cover administration costs and to fund library construction (up to $18.5 million), potentially via bonds.
- Bonds would be repaid from tax revenues without being counted toward debt limits, and levy rules would not restrict those payments.
- The tax would end after 10 years or once funding goals are met, with any excess funds going to the general fund.
Relevant terms Douglas County; local sales and use tax; 0.25% (one quarter of one percent); library construction; voter approval; Minnesota Statutes 297A.99; bonding; Minnesota Statutes chapter 475; issuance costs; debt limit; levy limits; administration and collection; general fund; sunset; project costs; bond costs; interest.
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Taxes on: March 26, 2026 08:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 05, 2026 | Senate | Action | Introduction and first reading | ||
| March 05, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill uses this statute to authorize the local sales and use tax for Douglas County up to 0.25%, pending voter approval, and in conjunction with the authority in 297A.99.",
"modified": []
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provides the bonding framework for the project, allowing Douglas County to issue bonds under Minnesota Statutes chapter 475 up to 18,500,000 plus costs, with bond issuance aligned to voter approval; notes that a separate election under 475.58 is not required.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3 paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Establishes the termination mechanism for the tax, expiring at the earlier of ten years after first imposition or when funds are sufficient to pay project and related bond costs; requires remaining funds to go to the county general fund; authority to end the tax earlier by ordinance.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Requires any funds remaining after payment of costs due to timing of termination, including interest on bonds, to be placed in the county general fund.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3 paragraph f"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bond issuance under subdivision 3 is not subject to Minnesota Statutes sections 275.60 and 275.61.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bond issuance under subdivision 3 is not subject to Minnesota Statutes sections 275.60 and 275.61.",
"modified": []
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Any levy of taxes under Minnesota Statutes section 475.61 to pay principal and interest on the bonds is not subject to any levy limitation.",
"modified": []
},
"citation": "475.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "A separate election to approve the bonds under Minnesota Statutes section 475.58 is not required.",
"modified": []
},
"citation": "475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to Minnesota Statutes chapter 475 establishing the bonding authority used by Douglas County in this act.",
"modified": []
},
"citation": "Minnesota Statutes chapter 475",
"subdivision": ""
}
]Progress through the legislative process
In Committee