SF 4355

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/12/2026 09:45 a.m.

A bill for an act
relating to taxation; sales and use; authorizing the city of Albert Lea to extend its
local sales tax for additional projects; amending Laws 2005, First Special Session
chapter 3, article 5, section 38, as amended.

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

Section 1.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended
by Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section
23, Laws 2017, First Special Session chapter 1, article 5, section 12, and Laws 2017, First
Special Session chapter 1, article 5, section 13, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin 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 city of
Albert Lea may extend the sales and use tax of one-half percent authorized under subdivision
1, paragraph (a), for the purposes specified in subdivision 2a. 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 EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,
Laws 2017, First Special Session chapter 1, article 5, section 12, and Laws 2017, First
Special Session chapter 1, article 5, section 13, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Use of revenues; additional projects. new text end

new text begin The revenues derived from the tax
authorized under subdivision 1a must be used by the city to pay the costs of collecting and
administering the tax and paying for the following projects in the city, plus associated costs
related to the issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $20,000,000 for water quality improvements for the Shell Rock Watershed District;
new text end

new text begin (2) $9,300,000 for the expansion, improvement, and equipping of the Songbird Trail;
new text end

new text begin (3) $4,500,000 for the expansion, improvement, and equipping of the Albert Lea Public
Library;
new text end

new text begin (4) $4,700,000 for the Snyder Field Complex, including the expansion, improvement,
and equipping of the Snyder Field Recreation Area; and
new text end

new text begin (5) $1,500,000 for acquisition, construction, improvement, and equipping of Miracle
Field at Edgewater Park.
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 Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 3.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,
Laws 2017, First Special Session chapter 1, article 5, section 12, and Laws 2017, First
Special Session chapter 1, article 5, section 13, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2a 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 $40,000,000, plus an amount applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any money available to the city,
including the tax authorized under subdivision 1a. 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 city.
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 EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, as
amended by Laws 2014, chapter 308, article 3, section 23, and Laws 2017, First Special
Session chapter 1, article 5, section 13, is amended to read:

Subd. 4.

Termination of taxes.

new text begin (a) new text end The taxes imposed under this section expire at the
earlier of (1) 30 years after the taxes are first imposed, or (2) when the city council first
determines that the amount of revenues raised to pay for the projects under subdivision 2,
shall meet or exceed the sum of $30,000,000. Any funds remaining after completion of the
projects may be placed in the general fund of the city.

new text begin (b) The tax imposed under subdivision 1a expires at the earlier of (1) 30 years after the
tax is 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
2a 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 3a, 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 1a 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 Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end