HF3813 (Legislative Session 94 (2025-2026))
Waseca County authorized to impose a local sales tax.
Related bill: SF4049
AI Generated Summary
Purpose
- Allow Waseca County to raise local revenue to fund the construction of a new judicial center and cover related administration costs.
What the bill would do
- Local sales and use tax authorization: Waseca County may impose, by ordinance and with voter approval, a local sales and use tax of up to 3/8 of 1 percent (0.375%).
- Election requirement: The tax can only be imposed if approved by voters at an election as required by law (Minnesota Statutes section 297A.99, subdivision 3).
- In addition to existing taxes: This is an additional local tax beyond any other local sales tax.
How the revenue would be used (Subdivision 2)
- Fund administrative costs: Revenues would be used to pay the costs of collecting and administering the tax.
- Finance construction: Revenues would also be used to finance up to $45,000,000 plus related bonding costs for the construction of a new judicial center.
Bonding authority (Subdivision 3)
- Bond issuance: The county may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the project costs.
- Cap on bonds: The total principal amount of bonds may not exceed $45,000,000 plus costs of issuing the bonds.
- Security and flexibility: The bonds may be paid from or secured by any money available to the county, including tax revenues from the new tax.
- Not subject to certain limits: Bond issuance is not subject to Minnesota Statutes sections 275.60 and 275.61; bonds are not counted toward the county’s debt limit.
- Levy for debt service: Any levy of taxes to pay principal and interest on the bonds is not subject to levy limitations.
- Election for bonds: A separate election to approve the bonds is not required.
Termination and sunset (Subdivision 4)
- Expiration: The tax would expire at the earlier of 30 years after the tax is first imposed or when the county determines that the amount received is sufficient to pay the project costs (and bond costs) as described, including interest.
- Remainder funds: Any money left after paying allowed costs, due to timing, must go to the county’s general fund.
- Early expiration: The county can end the tax earlier by ordinance.
Other notes
- If approved, this plan creates a dedicated funding mechanism for a specific local project (a new judicial center) and related administration, with a defined sunset and bonding structure. It is designed to be separate from existing state laws governing other local taxes and debt.
Effects and considerations
- Local control: The county would have authority to implement and terminate the tax, subject to voter approval and state law.
- Financial structure: The plan separates project funding from general funds, uses bond financing, and creates a funded pathway for construction without imposing a statewide tax.
Relevant Terms - Waseca County - local sales and use tax - 3/8 of 1 percent (0.375%) - voters / election - Minnesota Statutes 297A.99 - Minnesota Statutes chapter 475 - judicial center - bonding costs - aggregate principal amount - debt limit - levy limitation - 275.60 and 275.61 (debt/levy statutes) - general fund - expiration / sunset - project costs
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minnesota Statutes section 477A.016 to ground the local sales and use tax authority for Waseca County and related election requirements.",
"modified": []
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites 297A.99 subdivision 1, paragraph (a) in connection with approving the bonding and related voter authorization for the project.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 1, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 297A.99 subdivision 12 regarding the possible expiration of the tax after certain conditions are met.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites 297A.99 subdivision 2, paragraph (a) in relation to approval for issuing bonds and voter considerations.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 2, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 297A.99 subdivision 3, paragraph (f) regarding disposition of remaining funds after project costs are paid.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3, paragraph f"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minnesota Statutes chapter 475 for general bonding authority related to financing the project.",
"modified": []
},
"citation": "475",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minnesota Statutes section 275.60 in the context of debt service and levy considerations for bond principal and interest.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minnesota Statutes section 275.61 regarding levy limitations related to debt service.",
"modified": []
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minnesota Statutes section 475.58 to note that a separate election to approve the bonds is not required.",
"modified": []
},
"citation": "475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Note: Duplicate entry to reflect explicit reference to 297A.99 subdivision 2, paragraph a in relation to bond issuance.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 2, paragraph a"
}
]Progress through the legislative process
In Committee