SF3788 (Legislative Session 94 (2025-2026))
Isanti County local sales tax authorization provision
AI Generated Summary
Purpose
If voters approve, Isanti County would be allowed to impose a local sales and use tax of 0.25% (one-quarter of 1%) to fund specific project costs. The revenue would be used to cover the costs of collecting and administering the tax and to finance a construction project: a new highway department facility, along with related bond costs.
Key Provisions
- Tax authority and voter approval: The county may impose the tax by ordinance only if approved by voters at an election, in line with Minnesota law (referring to the voter-approval requirement in statutes). The tax is a local option and is added to any other local sales tax.
- Use of revenues: Money raised from the tax must first pay for the costs of collecting and administering the tax, and then finance up to $25,000,000 for constructing the new highway department facility and covering bond costs for the project.
- Bonding for the project: Isanti County may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the project costs. The total principal amount for bonds may not exceed $25,000,000 plus costs of issuing bonds. Bonds can be paid from any money available to the county, including tax revenues.
- Debt and levy rules: Bonds issued under this provision are not subject to certain debt limitations or to the usual debt-related levy limitations. The county is not required to have a separate election to issue these bonds.
- Relationship to other taxes: The new local sales tax is in addition to any other local sales tax already in place under other laws.
Tax Details and Administration
- Administration: The tax would be administered and collected under the applicable Minnesota statutes governing local sales taxes (including the existing framework for collection and enforcement).
- Funding priorities: The tax proceeds are dedicated first to administration and collection costs, then to financing the project costs (up to $25 million) and associated bond costs.
Termination and Sunset
- Sunset timing: The tax would expire at the earlier of 25 years after it is first imposed, or when the county determines it has received $25,000,000 to fund the project plus enough to pay costs related to issuing any bonds (and interest).
- Remaining funds: Any money left after paying the allowed project and bond costs generally goes to the county’s general fund, subject to applicable statutes; the tax could end earlier if the county passes an ordinance to terminate it before the 25-year term.
Significance and Impact (plain-language view)
- This bill creates a temporary, targeted funding mechanism for a specific county project (the highway department facility) through a small local sales tax.
- It couples the tax with a financing plan (bonds) that is largely exempt from some traditional debt and levy limits.
- The arrangement requires voter approval and has an explicit sunset/termination schedule tied to project funding milestones.
Relevant Terms - Isanti County - local sales tax - 0.25% (one-quarter of 1 percent) - voter approval / voters - Minnesota Statutes 297A.99 - Minnesota Statutes chapter 475 - bonds / bonding / bond costs - project: construction of a highway department facility - costs of issuing bonds / issuance costs - debt limitations / levy limitations - administration and collection costs - termination / sunset - county general fund - separate election not required for bonds - added to existing local taxes (in addition to other local sales taxes)
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Taxes on: March 18, 2026 08:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 23, 2026 | Senate | Action | Introduction and first reading | ||
| February 23, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Includes explicit override of 297A.99 subdivision 1 to permit the local sales tax."
],
"removed": [],
"summary": "The bill authorizes Isanti County to impose by ordinance a 0.25% sales and use tax for specified purposes, notwithstanding Minnesota Statutes 297A.99 subdivision 1.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 477A.016 as part of permissive authority; it does not modify it.",
"modified": []
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Uses Minnesota Statutes 297A.99 subdivision 3 to govern bond and funding actions, including the option to issue bonds and to handle funds upon termination of the tax; the text also references paragraph f of this subdivision.",
"modified": [
"References 297A.99 subdivision 3 (including paragraph f) to address the use of remaining funds and timing of termination."
]
},
"citation": "297A.99",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Directs that any money remaining after payment of costs under the termination provisions of 297A.99 subdivision 12 shall be placed in the county's general fund.",
"modified": [
"Uses 297A.99 subdivision 12 to determine disposition of remaining funds at termination."
]
},
"citation": "297A.99",
"subdivision": "subdivision 12"
},
{
"analysis": {
"added": [],
"removed": [
"Exempts bonds from 275.60/275.61 debt limit processes."
],
"summary": "The issuance of bonds under this subdivision is not subject to Minnesota Statutes sections 275.60 and 275.61.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The issuance of bonds under this subdivision is not subject to Minnesota Statutes sections 275.60 and 275.61.",
"modified": [
"Exempts bonds from 275.60/275.61 debt limit processes."
]
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Exemption from levy limits for the debt service levy under 475.61."
],
"summary": "Any levy of taxes under Minnesota Statutes section 475.61 to pay principal of and interest on the bonds is not subject to levy limitation.",
"modified": []
},
"citation": "475.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "A separate election to approve the bonds under Minnesota Statutes section 475.58 is not required.",
"modified": [
"Eliminates separate bond election requirement under 475.58."
]
},
"citation": "475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes chapter 475 for bonding authority related to financing the project.",
"modified": []
},
"citation": "475",
"subdivision": ""
}
]Progress through the legislative process
In Committee