HF4873

Purpose

The bill would let the city of St. Cloud add a local sales and use tax of 0.25% (one-quarter of one percent) if voters approve. The new tax is meant to raise money to finance a specific recreation project and cover the costs of administering the tax.

Main provisions

• Local tax authority: The city may impose the 0.25% sales and use tax by ordinance, with voter approval as required by law.
• Relationship to other taxes: This tax is in addition to any other local sales and use taxes the city already has or may have under different laws.
• Governing rules: The tax would be administered, collected, and enforced under Minnesota law (as specified in a state statute referenced in the bill).

Use of tax revenues

• Administrative costs: Revenue from the tax can be used to pay the costs of collecting and administering the tax.
• Recreation project funding: Revenue can be used to finance up to $7,000,000 for an outdoor water park adjacent to the St. Cloud Aquatics Center, or to fund that project in other allowable ways totaling up to $7,000,000.

Bonding authority to fund the project

• Bond issuance: The city may issue bonds under state bonding laws to help finance all or part of the project costs.
• Bond limit: The total bond principal cannot exceed $7,000,000 plus issuance costs.
• Bond taxes and debt rules: Bonds may be paid from the tax revenues or other city funds and are not counted against the city’s debt limit. The bonds are not subject to certain debt levy limits and related state debt statutes specified in the bill.
• Election requirements for bonds: A separate election to approve the bonds is not required, but voter approval is still required for the project financing as described earlier.

Termination and duration of the tax

• Tax expiration: The tax would end at the earlier of three years after it is first imposed or when the city determines that the tax revenues are sufficient to pay the project costs (including any bond-related costs, if bonds are issued) with any applicable voter-approved funding.
• Spillover funds: Any money remaining after paying approved costs, due to timing of termination, must be placed in the city’s general fund.
• Early termination: The city can decide to end the tax earlier by ordinance.

Additional context

• Voter approval: The tax requires voter approval as part of the process, and the bonding portion follows specific state statute requirements about voter consent.
• Legal references: The bill connects to several Minnesota Statutes sections related to sales taxes, bonding, and debt (e.g., sections governing local option taxes, bonding authority, and debt limits).

Potential impact and scope

• Local impact: Residents and visitors would see a small increase in sales and use taxes within St. Cloud if voters approve, with the primary project being an outdoor water park near the existing aquatics facility.
• Specific project focus: Funds are dedicated specifically to the outdoor water park project and related administration, rather than general city services.

Relevant Terms - local sales and use tax - St. Cloud - 0.25% (one-quarter percent) - outdoor water park - St. Cloud Aquatics Center - bonding / bonds - Minnesota Statutes 297A.99 - Minnesota Statutes 475.58 - Minnesota Statutes 475.60 - Minnesota Statutes 475.61 - debt limits - levy limits - voter approval - ordinance - administration costs - project costs - issuance costs - general fund