SF 3674

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/20/2026 09:31 a.m.

A bill for an act
relating to taxation; sales and use; authorizing the city of Oak Park Heights to
impose a local sales and use tax; authorizing use of certain other revenues.

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

Section 1. new text begin CITY OF OAK PARK HEIGHTS; 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 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 Oak Park Heights may impose by ordinance a
sales and use tax of one-half of one percent for the purposes specified in subdivision 2.
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 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 Notwithstanding Minnesota Statutes, section
297A.99, subdivision 2, paragraph (d), the revenues derived from the tax authorized under
subdivision 1 must be used by the city of Oak Park Heights to pay the costs of collecting
and administering the tax, and to finance $41,000,000, plus associated bonding costs, for
water infrastructure.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Oak Park Heights may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the water
infrastructure facilities and systems authorized in subdivision 2 and approved by the 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
$41,000,000 for the project listed in subdivision 2 plus an amount to be applied to the
payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any money available to the city of Oak
Park Heights, including the tax authorized under subdivision 1 and the full faith and credit
of the city. 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 (c) The bonds are not included in computing any debt limitation applicable to the city
of Oak Park Heights 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 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 being first imposed, or (2) when the city council determines that $41,000,000 has been
received from the tax to fund the project authorized under subdivision 2, 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 money 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, shall be placed in the general fund of the city. The tax imposed
under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
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
city of Oak Park Heights and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end