HF 4789
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/26/2026 02:38 p.m.
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A bill for an act
relating to taxation; sales and use; modifying the Hermantown local sales tax
authorization; amending Laws 2021, First Special Session chapter 14, article 8,
section 8, subdivisions 1, 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 2021, First Special Session chapter 14, article 8, section 8, subdivision
1, is amended to read:
Subdivision 1.
Sales and use tax authorization.
Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Hermantown may impose by ordinance a sales
and use tax of one-half of one percent for the purposes specified in subdivision 2. new text begin The
amendments to subdivisions 2 and 3 made by sections 2 and 3 apply notwithstanding
Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a) and (b). new text end 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 2.
Laws 2021, First Special Session chapter 14, article 8, section 8, subdivision 2, is
amended to read:
Subd. 2.
Use of sales and use tax revenues.
The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Hermantown to pay the costs of collecting
and administering the tax and paying for the following projects in the city related to a
Community Recreational Initiative, including securing and paying debt service on bonds
issued to finance all or part of the following projects:
(1) deleted text begin $10,840,000 fordeleted text end an addition of a second ice sheet with locker rooms and other facilities
and upgrades to the Hermantown Hockey Arena;
(2) deleted text begin $4,570,000 fordeleted text end construction of the Hermantown-Proctor trail running from the Essentia
Wellness Center to the border with Proctor and eventually connecting to the Munger Trail;
and
(3) deleted text begin $3,900,000 fordeleted text end improvements and upgrades to Fichtner Park.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 3.
Laws 2021, First Special Session chapter 14, article 8, section 8, subdivision 3, is
amended to read:
Subd. 3.
Bonding authority.
(a) The city of Hermantown may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). deleted text begin The aggregate principal amount of bonds
issued under this subdivision may not exceed:
deleted text end
deleted text begin
(1) $10,840,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
deleted text end
deleted text begin
(2) $4,570,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
deleted text end
deleted text begin
(3) $3,900,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds.
deleted text end
The bonds may be paid from or secured by any funds available to the city of Hermantown,
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.
(b) The bonds are not included in computing any debt limitation applicable to the city
of Hermantown, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal 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 begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end