SF4478 (Legislative Session 94 (2025-2026))
Audubon authorization to impose a local sales and use tax
AI Generated Summary
Purpose
- Authorizes the city of Audubon to impose a local sales and use tax of one-half percent (0.5%) if voters approve at an election. The tax is intended to fund the Fire Hall Project and related costs, in addition to any other local taxes.
Local tax authorization and election requirements
- The tax can be imposed only with voter approval as required by Minnesota law (Minnesota Statutes 297A.99). The rest of the process is governed by state law for sales and use taxes and local ordinances.
Use of revenues and project funding
- Revenues from the tax must be used to pay the costs of collecting and administering the tax and to finance up to $3,000,000 plus bonding costs for the Fire Hall Project.
- The tax revenue is dedicated to financing the project and related administrative costs, rather than general purposes.
Bonding authority and debt decisions
- The city may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the Fire Hall Project, up to $3,000,000 plus bond issuance costs.
- Bonds may be paid from any money available to the city, including tax revenues, and issuance is not subject to certain debt-related statutes (275.60 and 275.61). The bond debt is not counted toward the city’s statutory debt limit, and no separate election is required to approve the bonds (a separate election under 475.58 is not needed).
- Levy limits do not apply to the levy used to pay principal and interest on these bonds.
Termination / sunset of the tax
- The tax expires at the earlier of 20 years after first imposition or when the city determines that enough revenue has been collected to pay the project costs and related bond costs (including interest), provided the project is approved by voters as required.
- Any money remaining after these costs are paid generally goes to the city’s general fund, unless otherwise provided by statute. The city may also terminate the tax earlier by ordinance.
What this bill would change
- Creates a new, voter-approved local sales and use tax specifically for Audubon to fund a Fire Hall Project.
- Establishes a limit on bonding and a defined funding deadline (sunset) tied to project costs and debt service.
- Alters how the city can raise and use debt and tax revenue for a specific municipal project, with details about administration, enforcement, and how funds are treated if surplus remains.
Administrative and enforcement notes
- Existing state rules for administering and enforcing local sales taxes apply, with the added requirement that the tax supports the Fire Hall Project and related costs.
Relevant Terms - local sales and use tax - Audubon - 0.5% (one-half percent) - Fire Hall Project - voter approval / election - bonding / bonds - Minnesota Statutes 297A.99 - Minnesota Statutes 475 (bonding) - debt limits - 275.60 and 275.61 (referenced exclusions) - termination / sunset - general fund - tax administration and enforcement
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 17, 2026 | Senate | Action | Introduction and first reading | ||
| March 17, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 477A.016 to permit the City of Audubon to impose a local sales and use tax, contingent on voter approval under Minn. Stat. 297A.99.",
"modified": []
},
"citation": "477A.016",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill relies on Minn. Stat. 297A.99, subdivision 3, as part of the framework for voter-approved local sales and use taxes.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 297A.99, subdivision 1, paragraph a, in connection with voter approval provisions for local taxes.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 1, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 297A.99, subdivision 3, paragraph a, in relation to the election requirements for the tax and related actions.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3, paragraph a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 297A.99, subdivision 12, concerning the termination date of the tax and disposition of remaining funds.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 297A.99, subdivision 3, paragraph f, regarding the disposition of funds after termination.",
"modified": []
},
"citation": "297A.99",
"subdivision": "subdivision 3, paragraph f"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill notes that certain debt levies are not subject to levy limitations under Minn. Stat. 275.60, which relates to debt levies.",
"modified": []
},
"citation": "275.60",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minn. Stat. 275.61 in connection with debt service levies and their treatment under levy limitations.",
"modified": []
},
"citation": "275.61",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minn. Stat. chapter 475 for authority related to issuing bonds to finance the project.",
"modified": []
},
"citation": "475",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill notes that a separate election to approve bonds under Minn. Stat. 475.58 is not required.",
"modified": []
},
"citation": "475.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill cites Minn. Stat. 475.61 regarding levy authority to pay principal and interest on bonds and states such levies are not subject to levy limitations.",
"modified": []
},
"citation": "475.61",
"subdivision": ""
}
]Progress through the legislative process
In Committee