SF4864
Chisago County authorization to impose a local sales and use tax
Legislative Session 94 (2025-2026)
Related bill: HF4779
AI Generated Summary
Purpose
- The bill authorizes Chisago County to impose a local sales and use tax of one-half of one percent to fund specified projects and related costs. The tax is in addition to any other local sales tax or special law taxes, and the county would follow the existing rules for imposing, collecting, and enforcing the tax.
Main Provisions
Tax authorization
- Chisago County may by ordinance impose a sales and use tax of one-half of one percent (0.5%) for the purposes described in the bill’s subdivision 2.
- The tax rules follow Minnesota Statutes section 297A.99, and apply in addition to other local taxes such as those under 297A.993 or other special laws.
Use of revenues
- Revenues from the tax must be used to pay the costs of collecting and administering the tax.
- Revenues may also be used for projects and costs allowed under Minnesota Statutes section 297A.993 subdivision 2.
- The revenues can also cover the bond costs for any bonds issued under the bonding authority described below.
Bonding authority
- The county may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the costs of the authorized projects and costs.
- Bonds may be paid from or secured by any money available to the county, including the tax revenue.
- The bond issuance is not subject to Minnesota Statutes sections 275.60 or 275.61.
- The bonds are not counted toward the county’s debt limit.
- Any levy of taxes under section 475.61 to pay principal and interest on the bonds is not subject to levy limits.
- A separate election to approve the bonds under section 475.58 is not required.
Termination
- The county may terminate the tax by ordinance.
Significant Changes to Existing Law
- Establishes a new local sales and use tax authority for Chisago County at 0.5%.
- Allows bonding under Chapter 475 with relaxed constraints (no 275.60/275.61 limits, no impact on debt or levy limitations, and no separate election required for bonds).
- Directs that tax revenues be used for administrative costs, eligible projects, and associated bond costs, expanding how a county can finance and manage local improvements.
Practical Effect
- The county gains the ability to fund local projects and costs through a dedicated 0.5% tax and to issue bonds to finance those projects, with some procedural and debt provisions removed or overridden compared to typical tax and debt rules. It also provides a mechanism to end the tax through a county ordinance.
Relevant Terms - Chisago County - local sales and use tax - one-half of one percent - Minnesota Statutes section 297A.99 - Minnesota Statutes section 297A.993 subdivision 2 - bond costs - Minnesota Statutes chapter 475 - 275.60 - 275.61 - debt limitation - levy limitation - ordinance - bonds issued - election 475.58 - administration and enforcement
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Taxes on: April 09, 2026 08:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | Senate | Action | Introduction and first reading | ||
| March 25, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Adds local option sales and use tax authority for Chisago County under subdivision 2.",
"Permits use of tax revenues for collection, administration, and projects under subdivision 2 and for bond costs under subdivision 3."
],
"removed": [],
"summary": "Authorizes Chisago County to impose by ordinance a local sales and use tax of 0.5% for specified purposes, with administration, collection, and enforcement governed by 297A.99 and related provisions.",
"modified": [
"Clarifies the interaction with existing local tax authority under 297A.99 and establishes funding and bonding mechanisms for the new local tax."
]
},
"citation": "Minnesota Statutes 297A.99",
"subdivision": "subd. 2; subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "States that the local tax authorized by the bill is in addition to any local sales and use tax imposed under 297A.993 or other law.",
"modified": [
"Affirms that the new local tax operates alongside existing local taxes under 297A.993."
]
},
"citation": "Minnesota Statutes 297A.993",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in context of the authority to adopt local taxes and related legal framework.",
"modified": []
},
"citation": "Minnesota Statutes 477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [
"Bonding authority under chapter 475 to finance the projects described in subdivision 2."
],
"removed": [],
"summary": "Provides bonding authority under which Chisago County may issue bonds to finance projects authorized by the local tax.",
"modified": [
"Describes bond security and debt considerations related to the local tax."
]
},
"citation": "Minnesota Statutes chapter 475",
"subdivision": ""
},
{
"analysis": {
"added": [
"Exemption from levy limitations under 275.60 for debt service on bonds."
],
"removed": [],
"summary": "Bonds issued under subdivision 3 are not subject to levy limitations under 275.60.",
"modified": []
},
"citation": "Minnesota Statutes 275.60",
"subdivision": ""
},
{
"analysis": {
"added": [
"Exemption from levy limitations under 275.61 for debt service on bonds."
],
"removed": [],
"summary": "Bonds issued under subdivision 3 are not subject to levy limitations under 275.61.",
"modified": []
},
"citation": "Minnesota Statutes 275.61",
"subdivision": ""
},
{
"analysis": {
"added": [
"Not subject to levy limitations for bond principal and interest under 475.61."
],
"removed": [],
"summary": "Addresses levy for principal and interest on bonds and its relation to levy limits.",
"modified": []
},
"citation": "Minnesota Statutes 475.61",
"subdivision": ""
},
{
"analysis": {
"added": [
"Separate election to approve bonds is not required."
],
"removed": [],
"summary": "Deletes the requirement for a separate election to approve the bonds under 475.58.",
"modified": []
},
"citation": "Minnesota Statutes 475.58",
"subdivision": ""
}
]Progress through the legislative process
In Committee