SF5240

Purpose and authority

• Allows Kandiyohi County to create a local sales and use tax with voter approval, to fund specified county projects and related costs. The tax must follow state law and statutes cited in the bill.

Tax authorization and rate

• The county may impose by ordinance a local sales and use tax of up to one-half of one percent (0.5%).
• The tax is in addition to other local taxes and applies as permitted under Minnesota law.
• Voters must approve the tax as required under Minnesota Statutes.

Use of tax revenues

• Revenues from the tax must be used to pay:
  • Project costs for approved county projects,
  • Costs of collecting and administering the tax,
  • Debt service on bonds issued to finance the projects.
• The specific projects funded are:
  • Construction of a new joint judicial center and public safety facility, and
  • Renovations to the county health and human services building.

Bonding authority and debt financing

• Kandiyohi County may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the project costs, with voter approval as required.
• Aggregate principal amount of bonds may not exceed $67,800,000 plus issuance costs.
• Bonds may be paid from the tax revenue or other county funds, and are not subject to certain debt-related statutory debt limits.
• The levy to pay bond principal and interest is not subject to levy limitations.
• No separate election to approve the bonds is required.
• The bonds may be secured by money available to the county, including tax revenues.

Termination and ending of the tax

• The tax expires at the earlier of:
  • 25 years after the tax is first imposed, or
  • When the county determines that the amount received is sufficient to pay project costs (including issuance costs and interest) for approved projects.
• Any remaining money after paying allowed costs must go to the county’s general fund.
• The tax may end earlier if the county enacts an ordinance to terminate it.

Election and approval requirements

• The tax requires voter approval under Minnesota law (297A.99), but approval for bonds does not require a separate election.

Administration and compliance

• The tax is administered, collected, and enforced under applicable local tax statutes and procedures.
• It is allowed in addition to any other local sales and use taxes imposed under other laws.

Relevant terms - Kandiyohi County - local sales tax - sales and use tax - 0.5% (one-half of one percent) - joint judicial center - public safety facility - health and human services building - bonds - Minnesota Statutes chapter 475 - debt service - issuance costs - levy limits - termination after 25 years - general fund - voter approval - 297A.99 - 275.60 and 275.61 (debt-related exclusions) - collection and administration costs