SF4417 (Legislative Session 94 (2025-2026))
City on Windom local sales and use tax imposition authorization provision
AI Generated Summary
Purpose
Authorizes the city of Windom to impose a local sales and use tax of 1 percent, but only if voters approve at an election. The tax would be used to fund specific city projects and related costs, and to cover the costs of administering the tax. The bill also allows financing through bonds to support the approved projects.
What the tax would do
- Tax authorization: Windom may implement a 1 percent local sales and use tax by ordinance, subject to voter approval under the state law cited. This tax is in addition to any other local taxes.
- Governing rules: The imposition, administration, collection, and enforcement of the tax would follow the applicable Minnesota laws (notably those in 297A.99), with the voter approval requirement and other conditions spelled out in statute.
Use of revenues
- Administrative costs: Revenues from the tax would first cover the costs of collecting and administering the tax.
- Project funding: The remaining funds would finance two city projects:
- A swimming pool project (estimated cost around $7.5 million).
- Flood mitigation measures (estimated cost around $1.5 million).
- Bond-related costs: Revenue may also be used to cover costs related to issuing bonds for these projects.
Bonding authority
- Financing through bonds: The city may issue bonds under Minnesota Statutes chapter 475 to help pay the costs of the approved projects.
- Limit: The total bond principal cannot exceed $9 million, plus the costs of issuing the bonds.
- Security and use of funds: Bonds may be paid from tax proceeds or other city money, and are not subject to certain debt-related statutes or debt limits.
- No separate bond election: A separate election to approve the bonds is not required.
Termination and sunset
- End date: The tax would expire at the earlier of 18 years after the tax is first imposed or when the city determines the tax revenues are sufficient to cover the authorized project costs plus related bond issuance costs.
- Surplus funds: Any money remaining after paying allowed costs would be placed in the city’s general fund.
- Early termination: The city may terminate the tax earlier by ordinance.
Significant changes introduced
- Creates a new local 1% sales and use tax for Windom, contingent on voter approval.
- Establishes dedicated uses for the revenue (swimming pool and flood mitigation) and authorizes bonding to help fund these investments.
- Removes certain debt limits for the bonds and allows a single, no-separate-election approach for bond approval.
- Sets a defined sunset timeline linked to project financing and bond costs, with provisions for handling surplus funds.
Relevant terms - Windom - local sales tax - use tax - 1 percent - voter approval - Minnesota Statutes 297A.99 - bond financing - chapter 475 - swimming pool project - flood mitigation measures - bond issuance costs - debt limits - general fund - administration costs - 18 years - sunset/termination - ordinance - administration and enforcement
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2026 | Senate | Action | Introduction and first reading | ||
| March 12, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill uses a not-withstanding clause referencing Minnesota Statutes section 477A.016 in relation to Windom's local sales and use tax authorization.",
"modified": []
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 3 regarding voter approval and related provisions for the local option sales tax; the bill does not modify that statute.",
"modified": []
},
"citation": "297A.99",
"subdivision": "3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 2 regarding bonding authorization; the bill relies on existing provisions for bonds.",
"modified": []
},
"citation": "297A.99",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 2, paragraph a regarding bond issuance for the projects; no modification to that provision by this bill.",
"modified": []
},
"citation": "297A.99",
"subdivision": "2, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 2, paragraph d as part of the bond-related provisions; no modification to that paragraph.",
"modified": []
},
"citation": "297A.99",
"subdivision": "2, paragraph d"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 3, paragraph a in the context of bond authority; no modification.",
"modified": []
},
"citation": "297A.99",
"subdivision": "3, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 3, paragraph f in relation to bond or termination provisions; no modification.",
"modified": []
},
"citation": "297A.99",
"subdivision": "3, paragraph f"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 297A.99 subdivision 12 regarding expiration conditions for the tax; no modification.",
"modified": []
},
"citation": "297A.99",
"subdivision": "12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill notes that debt-related provisions are not subject to Minnesota Statutes sections 275.60 and 275.61.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill notes that debt-related provisions are not subject to Minnesota Statutes section 275.61.",
"modified": []
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill states that 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": "The bill indicates that any levy of taxes to pay principal or interest on the bonds under Minnesota Statutes section 475.61 is not subject to levy limitations.",
"modified": []
},
"citation": "475.61",
"subdivision": ""
}
]Progress through the legislative process
In Committee