SF3789

Purpose

Authorize the city of Roseau to impose a local sales and use tax to fund specific community projects, with voter approval and defined rules about administration, bonding, and termination.

Key Provisions

• Tax authorization: Roseau may impose by ordinance a local sales and use tax of up to 0.5% (one-half of one percent) if approved by voters as required under Minnesota law. The tax is in addition to any other local taxes.
• Administration: The tax is subject to Minnesota Statutes section 297A.99 for its imposition, collection, and enforcement.
• Use of revenues (Subd. 2): Revenues must be used to cover the costs of collecting and administering the tax and to fund two specified projects, along with bond-related costs:
  • Renovation of the Roseau Memorial Arena: $1,430,000
  • Construction of a new community and wellness center: $8,200,000
• Bonding authority (Subd. 3): The city may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the project costs (up to $12,500,000 plus bond issuance costs). Bond proceeds may be paid from the tax or other city funds; bonds are not subject to certain state debt/debt-levy limits and are not included in the city’s debt limit. A separate election to approve bonds is not required.
• Separate laws: The authority is granted notwithstanding Minnesota statutes and ordinances, and the bond provisions are not subject to some levy limitations.

Termination and Duration

• Tax expiration (Subd. 4): The local tax must terminate no later than 30 years after first imposition or when the city determines that enough revenue has been collected to pay the project costs plus bond issuance costs.
• Remaining funds: Any funds remaining after paying allowed costs must go to the city’s general fund.
• Early termination: The city may end the tax earlier by ordinance.

Notable Legal Context

• Voter approval: The tax and any bond authorization require approval by voters as described in Minnesota Statutes section 297A.99.
• Project approval: Projects must be approved by voters under 297A.99 as part of the financing plan.

Notable Changes to Existing Law

• Creates a new, city-specific local sales and use tax authority for Roseau (up to 0.5%) tied to specific capital projects.
• Establishes a dedicated funding and debt framework for those projects, including bonding without impacting debt limits and without separate bond elections.
• Defines a targeted use of tax revenues for project costs and related administration, with explicit termination timing and handling of surplus funds.

Relevant terms - local sales and use tax - Roseau - 0.5% (one-half of one percent) - voter approval - Minnesota Statutes 297A.99 - Minnesota Statutes Chapter 475 - Roseau Memorial Arena - community and wellness center - bonding/issuance costs - debt limits - levy limitations - termination date - general fund