SF 4197
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/10/2026 09:12 a.m.
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A bill for an act
relating to taxation; local sales taxes; amending the approved uses of local sales
tax funds collected by the city of Rochester; amending Laws 1998, chapter 389,
article 8, section 43, subdivisions 3a, as added, 4a, as added, 5, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 1998, chapter 389, article 8, section 43, subdivision 3a, as added by Laws
2023, chapter 64, article 10, section 7, is amended to read:
Subd. 3a.
Use of sales and use tax revenues; additional projects.
new text begin (a) new text end The revenues
derived from the extension of the tax authorized under subdivision 1a must be used by the
city of Rochester to pay the costs of collecting and administering the tax and paying for the
following projects in the city, including securing and paying debt service on bonds issued
to finance all or part of the following projects, plus associated bonding costs:
(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$50,000,000 for an economic vitality fund and expenses eligible to be paid from the fund;
(2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$50,000,000 for street reconstruction;
(3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$40,000,000 for flood control and water quality, excluding removal of the MN00515 dam;
and
(4) $65,000,000 for a sports and recreation complex.
new text begin
(b) Notwithstanding voter approval, the city must not collect funds for the use designated
in paragraph (a), clause (4), after June 30, 2026. Any funds generated by the tax after voter
approval and through June 30, 2026, must be applied to the uses in paragraph (a), clauses
(1) to (3).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Laws 1998, chapter 389, article 8, section 43, subdivision 4a, as added by Laws
2023, chapter 64, article 10, section 8, is amended to read:
Subd. 4a.
Bonding authority; additional projects and extension of tax.
(a) The city
of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
portion of the costs of the projects authorized in subdivision 3a 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
deleted text begin $205,000,000deleted text end new text begin $140,000,000new text end for the projects described in subdivision 3a, clauses (1) to deleted text begin (4)deleted text end new text begin
(3)new text end , plus an amount to be applied to the payment of the costs of issuing the bonds.
(b) The bonds may be paid from or secured by any funds available to the city of
Rochester, including the tax authorized under subdivision 1a 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.
(c) The bonds are not included in computing any debt limitation applicable to the city
of Rochester, 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 following final enactment.
new text end
Sec. 3.
Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
chapter 7, article 4, section 7, Laws 2013, chapter 143, article 10, section 13, and Laws
2023, chapter 64, article 10, section 9, is amended to read:
Subd. 5.
Termination of taxes.
(a) The taxes imposed under subdivisions 1 and 2 expire
at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
funds have been received from the taxes to finance the first $71,500,000 of capital
expenditures and bonds for the projects authorized in subdivision 3, including the amount
to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
(b). Any funds remaining after completion of the project and retirement or redemption of
the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
by the voters of the city at a special election in 2005 or the general election in 2006. The
question put to the voters must indicate that an affirmative vote would allow up to an
additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
be issued above the amount authorized in the June 23, 1998, referendum for the projects
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
this paragraph, the taxes expire when the city council determines that sufficient funds have
been received from the taxes to finance the projects and to prepay or retire at maturity the
principal, interest, and premium due on any bonds issued for the projects under subdivision
4. Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city.
(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
2049, provided that all additional revenues above those necessary to fund the projects and
associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
fund public infrastructure projects contained in the development plan adopted under
Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
terminate when the city council determines that sufficient funds have been received from
the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on any
bonds issued for the projects under subdivision 4.
(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December
31, 2049, or when the city council determines that sufficient funds have been raised from
the tax plus all other city funding sources authorized in this article to meet the city obligation
for financing the public infrastructure projects contained in the development plan adopted
under Minnesota Statutes, section 469.43, including all financing costs.
(e) The tax imposed under subdivision 1a expires at the earlier of (1) deleted text begin 24deleted text end new text begin 20new text end years after
first imposed, or (2) when the city council determines that the amount of revenues received
from the tax is sufficient to pay for the project costs authorized under subdivision 3a for
projects approved by the 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 the bonds under subdivision 4a, 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, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the
city so determines by ordinance.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end