Purpose

• Give Sherburne County the authority to impose a local sales and use tax with voter approval, to fund the construction and related costs of a law enforcement center that includes a jail.

Key Provisions

• Tax Authorization: The county may levy a local sales and use tax of one-quarter percent (0.25%) for the purposes described, if approved by voters.
• Use of Revenues: Tax revenues must first cover the costs of collecting and administering the tax, and then may fund up to $75,000,000 plus related bonding costs for the law enforcement center (including a jail).
• Bonding Authority: The county may issue bonds to finance all or part of the project costs, up to the $75,000,000 limit plus issuance costs. Bonds can be paid from the tax revenue or other available money, and the bonds are not counted in the county’s debt limits. A separate election to approve the bonds is not required.
• Relationship to Other Laws: The tax is in addition to any other local sales and use taxes and follows the general procedures in Minnesota law for such taxes.

Financing and Bonding

• Bond Size and Use: Up to $75,000,000 of bond principal to finance the project, plus costs of issuing bonds.
• Debt and Levy Exemptions: Bond issues are not subject to certain statewide debt limitations and do not require approval under those specific limits.
• Tax Revenue Allocation: Revenues from the tax must be used to pay for collecting/administering the tax and to finance the project costs (including bonds).

Term and Termination

• Duration: The tax expires at the earlier of 20 years after the tax is first imposed, or when the county determines the amount received is sufficient to pay the project costs and bond costs (plus related interest) as approved by voters.
• Surplus Funds: Any money remaining after paying approved costs, due to timing of termination, generally goes to the general fund of the city (per the bill’s wording).
• Early Termination: The city may terminate the tax earlier by ordinance.

Administration and Election

• Voter Approval: The tax may be imposed only after voters approve it in an election as required by statute.
• Administration: The tax is administered, collected, and enforced under the state laws governing local sales and use taxes, with the county responsible for these tasks.

Significant Changes to Existing Law

• Adds a new local option for Sherburne County to impose a 0.25% sales and use tax specifically dedicated to funding a law enforcement center (including a jail) and related costs.
• Creates a bonding mechanism to finance up to $75,000,000 of project costs without triggering certain debt limits or requiring separate bond elections.
• Ties tax expiration to a 20-year maximum or to the point when project and bond costs are fully paid, with potential early termination by ordinance.
• Specifies purposes for tax revenue and how any remaining funds beyond approved costs are handled.

Practical Impact

• Residents and businesses in Sherburne County could face a small additional sales tax if voters approve it.
• The tax revenue would primarily support building and financing a new law enforcement facility, including a jail, via bonds.
• The measure uses a structured financing approach intended to minimize impact on county debt limits and streamline bond approvals.

Relevant Terms

• Sherburne County
• local sales and use tax
• one-quarter percent (0.25%)
• voter approval / election
• Minnesota Statutes 297A.99
• bond issuance / bonding authority
• Minnesota Statutes chapter 475
• law enforcement center (including a jail)
• administration and collection costs
• bond costs / issuance costs
• debt limitations
• termination / expiration of tax
• general fund
• separate election not required for bonds

Relevant Terms - sherburne county, local sales tax, 0.25%, bonds, law enforcement center, jail, 297A.99, 475, administration costs, expiration, debt limitations, general fund