HF3473 (Legislative Session 94 (2025-2026))
Oak Park Heights; local sales and use tax imposition authorized, and use of other revenues authorized.
Related bill: SF3674
AI Generated Summary
Purpose
- Authorizes the city of Oak Park Heights to create a local sales and use tax to fund water infrastructure.
Local sales and use tax authorized
- Oak Park Heights may impose a sales and use tax of 0.5% (one-half of one percent) after voters approve it at a general election.
- The tax is in addition to any local sales and use taxes already allowed under other laws.
Revenue use and purposes
- Revenues from the tax must be used to:
- pay the costs of collecting and administering the tax, and
- finance up to $41,000,000, plus associated bonding costs, for water infrastructure.
- This use is in addition to other law, and some existing statutes related to tax collection are overridden for this purpose.
Bonding authority and debt
- The city may issue bonds under Minnesota Statutes chapter 475 to fund all or part of the water infrastructure costs approved by voters.
- Total bond principal may not exceed $41,000,000 for the project, plus costs of issuing bonds.
- Bonds may be paid from tax revenues or other funds, and from the city’s full faith and credit.
- Bond issuance is not subject to certain debt-limit laws, and the bonds are not counted toward the city’s debt limit. A separate election to approve the bonds is not required.
Termination and duration
- The tax expires at the earlier of:
- 20 years after it is first imposed, or
- the time when $41,000,000 has been received to fund the project plus enough to pay bond issuance costs (including interest).
- Any money remaining after paying allowed costs goes into the city’s general fund.
- The city can end the tax earlier by ordinance.
Relationship to existing law
- The bill uses a general “notwithstanding” clause to override certain statutes (e.g., 297A.99 and others) to allow this local tax and bonding arrangement for water infrastructure.
What changes this bill would make
- Creates a new, voter-approved 0.5% local sales tax for Oak Park Heights specifically earmarked for water infrastructure.
- Establishes a dedicated bond funding limit ($41 million) and a plan to fund debt service through the tax and other city resources.
- Allows faster or alternative financing for water projects by bypassing some standard debt and election requirements.
Relevant Terms - Oak Park Heights - local sales and use tax - 0.5% (one-half of one percent) - water infrastructure - general election - Minnesota Statutes 297A.99 - bonding under Minnesota Statutes chapter 475 - full faith and credit - debt limitations - costs of issuing bonds - termination of tax - general fund - revenue collection and administration
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 19, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill authorizes the city of Oak Park Heights to impose by ordinance a local sales and use tax of one-half of one percent, contingent on voter approval and compliance with Minnesota Statutes section 297A.99 subdivision 1.",
"modified": []
},
"citation": "Minnesota Statutes section 297A.99",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Notwithstanding Minnesota Statutes section 297A.99 subdivision 2 paragraph d, the revenues from the tax must be used by the city to pay the costs of collecting and administering the tax and to finance water infrastructure.",
"modified": []
},
"citation": "Minnesota Statutes section 297A.99",
"subdivision": "2, paragraph d"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Bonding authority to finance all or a portion of the water infrastructure costs under Minnesota Statutes section 297A.99 subdivision 3 paragraph a, with voter approval as required.",
"modified": []
},
"citation": "Minnesota Statutes section 297A.99",
"subdivision": "3, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "If money remains after payment of allowed costs due to timing of termination of the tax, as provided in Minnesota Statutes section 297A.99 subdivision 12, such money shall be placed in the city’s general fund.",
"modified": []
},
"citation": "Minnesota Statutes section 297A.99",
"subdivision": "3, paragraph f"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Subdivision 12 addresses the termination timing of the tax and related procedures.",
"modified": []
},
"citation": "Minnesota Statutes section 297A.99",
"subdivision": "12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minnesota Statutes section 477A.016 in its provisions, but does not modify that statute.",
"modified": []
},
"citation": "Minnesota Statutes section 477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Bonding authority is drawn from Minnesota Statutes chapter 475 to finance water infrastructure facilities and systems.",
"modified": []
},
"citation": "Minnesota Statutes chapter 475",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "A separate election to approve the bonds under Minnesota Statutes section 475.58 is not required.",
"modified": []
},
"citation": "Minnesota Statutes section 475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bonds issued under this act are not subject to the debt limitations in Minnesota Statutes sections 275.60 and 275.61.",
"modified": []
},
"citation": "Minnesota Statutes sections 275.60 and 275.61",
"subdivision": ""
}
]Progress through the legislative process
In Committee