HF 4033

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 11:48 a.m.

A bill for an act
relating to taxes; local sales and use; authorizing the Cloquet Area Fire District to
impose a local sales tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CLOQUET AREA FIRE DISTRICT; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
Cloquet Area Fire District may impose by majority vote of the governing body of the district
a sales and use tax of up to one-half of one percent for the purpose specified in subdivision
2.
new text end

new text begin (b) A separate election to approve the tax must be conducted in the city of Cloquet and
the city of Scanlon. The tax under this section only applies in a city in which the tax is
approved by voters at an election and does not apply in any other political subdivision.
new text end

new text begin (c) Except as otherwise provided in this section, the provisions of Minnesota Statutes,
section 297A.99, govern the imposition, administration, collection, and enforcement of the
tax authorized under this subdivision. Notwithstanding the imposition of the tax in the city
of Cloquet, the city of Scanlon, or both, and in accordance with section 297A.99, subdivision
11, the commissioner of revenue must remit the proceeds of the tax, less refunds and a
proportionate share of the cost of collection, to the Cloquet Area Fire District. The tax
imposed under this subdivision is in addition to any local sales and use tax imposed under
any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the Cloquet Area Fire District to pay the costs of
collecting and administering the tax, and to finance up to $31,000,000 for the construction
of Ambulance and Fire Station I for the district, as well as securing and paying debt service
on bonds issued to finance all or part of this project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The Cloquet Area Fire District may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2 and approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $31,000,000, plus an amount applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the Cloquet Area Fire District, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the Cloquet
Area Fire District. Any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal of and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the Cloquet Area Fire District determines that the
amount received from the tax is sufficient to pay for the project cost authorized under
subdivision 2 if approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the district. The tax imposed under subdivision 1 may expire at an earlier
time if the governing body of the district so determines.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
Cloquet Area Fire District and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end