Purpose

To change how Sauk Centre’s local sales and use tax can be modified, and to require voter approval for certain changes to the tax and its bonding authority.

Main provisions

• Adds a new subdivision (Subd. 1a) to the existing law governing Sauk Centre’s local sales tax.
• Stipulates that modifications to bonding authority (as described in an existing Subdivision 3) and changes to the amount of tax that may be collected before the tax terminates (as described in Subdivision 4) can only take effect if voters approve at an election.
• These changes must follow the voter-approval process described in Minnesota Statutes section 297A.99, subdivision 3, paragraph a.
• The new provision applies notwithstanding other laws, ordinances, or city charters, reinforcing that voter approval is required for these specific modifications.

Significant changes to existing law

• Introduces a requirement that key adjustments to Sauk Centre’s local sales tax—specifically bonding limits and the pre-termination tax amount—are conditioned on a voter election approval.
• Elevates the role of voters in deciding changes to the local sales tax authority, ensuring that any modification to bonding or tax collection limits cannot take effect without explicit approval.
• Integrates with and overrides other statutes only insofar as it requires voter approval under the cited statutes.

How it works in practice

• If the city wants to alter how much tax it can collect before the tax ends or to change bonding authority, those changes will only become effective after voters approve the modification in an election.
• The process must follow the standards and timing set out in the specified Minnesota statutes for voter-approved local taxes.

Key terms and phrases from the bill

• Sauk Centre local sales tax
• local sales and use tax authorization
• bonding authority
• subdivision 3
• subdivision 4
• termination of taxes
• Subd. 1a (new subdivision)
• voter approval
• election
• Minnesota Statutes section 297A.99 subdivision 3 paragraph a
• Minnesota Statutes section 477A.016
• Laws 2019 First Special Session chapter 6 article 6 section 28

Relevant Terms - Sauk Centre - local sales tax - bonding authority - tax collection limits - election - voter approval - statute references: 297A.99, 477A.016, 2019 First Special Session chapter 6 section 28 - Subdivision 3 and Subdivision 4 - modification and approval process