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SF4539 (Legislative Session 94 (2025-2026))

Sauk Centre local sales tax authorization modification

Related bill: HF4497

AI Generated Summary

Purpose

This bill changes how Sauk Centre’s local sales tax can be changed. It makes sure that any future changes to how much the city can borrow using the tax (bonding authority) and how much tax can be collected before the tax ends won’t take effect unless voters approve them in an election.

Main Provisions

  • Adds a new subdivision (Subd. 1a) to the existing local sales tax authorization for Sauk Centre.
  • Provides that modifications to bonding authority (as described in the existing subdivision 3) and changes to the amount of tax that may be collected before the tax ends (as described in the existing subdivision 4) are not effective unless voters approve them at an election.
  • Uses a “Notwithstanding” clause to override other laws, ordinances, or city charters, meaning even if other rules would allow changes without voter approval, the changes still require voter approval.
  • Requires that voter approval follow the process in Minnesota Statutes section 297A.99, subdivision 3, paragraph a.

What Changes or Changes in Effect

  • Bonding Authority: Any modifications to how much the city can bond using the local sales tax would take effect only if voters approve.
  • Tax Amount Before Termination: Any changes to the total tax amount that can be collected before the tax ends would take effect only if voters approve.
  • The changes are tied to the Sauk Centre local sales tax and reference the specific subdivisions in the 2019 law that initially authorized the tax.

How Voter Approval Works

  • The state requires an election in which voters decide whether to allow these specific changes.
  • The approval must comply with the procedures in Minnesota Statutes section 297A.99, subdivision 3, paragraph a.

Significance and Context

  • The bill strengthens voter control over changes to the city’s sales tax financing, making it harder for the city to alter debt levels or tax duration without citizen consent.
  • It acts as a protection to ensure major changes to local tax financing align with residents’ preferences.

Implications for Sauk Centre

  • Projects funded by the local sales tax or plans tied to tax duration and debt may need voter approval before any changes can be enacted.
  • The city’s ability to adjust bonds or the tax amount is effectively paused until voters approve.

Relevant terms - Sauk Centre - local sales tax - bonding authority - tax termination / termination of taxes - Subdivision 3 - Subdivision 4 - Subdivision 1a - Notwithstanding - Minnesota Statutes section 297A.99, subdivision 3, paragraph a - Minnesota Statutes section 477A.016 - voter approval - election - laws, ordinances, or city charter overrides

Relevant Terms (plain list for search relevance) Sauk Centre, local sales tax, bonding authority, tax collected before termination, voter approval, election, Notwithstanding, subdivision 3, subdivision 4, subdivision 1a, Minnesota Statutes 297A.99, 3(a), Minnesota Statutes 477A.016

Bill text versions

Upcoming committee meetings

  • Taxes on: March 26, 2026 08:30

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2026SenateActionIntroduction and first reading
March 17, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill contains a Notwithstanding clause referencing Minnesota Statutes section 477A.016, but does not itself amend or repeal that statute; it introduces a new subdivision related to Sauk Centre local sales tax.",
      "modified": [
        "The Notwithstanding reference to 477A.016 is used to limit the effect of other provisions, but the statute 477A.016 is not amended by this section."
      ]
    },
    "citation": "477A.016",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Adds Subd.1a titled 'Sales and use tax authorization modification and voter approval,' establishing that the specified modifications require voter approval."
      ],
      "removed": [],
      "summary": "The bill provides that modifications to bonding authority (subdivision 3) and the amount of tax that may be collected before the termination of taxes (subdivision 4) become effective only if approved by voters, as required under Minnesota Statutes section 297A.99 subdivision 3 paragraph a.",
      "modified": [
        "Requires voter approval under 297A.99 for the modifications to subdivisions 3 and 4 to take effect."
      ]
    },
    "citation": "297A.99",
    "subdivision": "subdivision 3, paragraph a"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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