SF 4705

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/24/2026 10:51 a.m.

A bill for an act
relating to taxation; local sales and use; amending the authorization for the city of
Baxter to impose a local sales tax; amending Laws 2006, chapter 259, article 3,
section 10, subdivisions 3, as amended, 4, as amended, 5, as amended.

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

Section 1.

Laws 2006, chapter 259, article 3, section 10, subdivision 3, as amended by
Laws 2014, chapter 308, article 3, section 24, is amended to read:

Subd. 3.

Use of revenues.

(a) Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
and to finance the acquisition and betterment of water and wastewater facilities to serve the
cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the
voters at the referendum authorizing the tax. Authorized costs include, but are not limited
to, acquiring property and paying construction and engineering costs related to the projects.

(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if
approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an
additional $40,000,000 of the revenues received from the taxes authorized by subdivisions
1 and 2 to a capital infrastructure fund. Money from this fund may only be used to finance
(1) sanitary sewer, storm sewer, and water projects, (2) transportation safety improvements,
and (3) improvements to the Brainerd Lakes Area Airport.

new text begin (c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
in addition to the projects authorized in paragraphs (a) and (b), the city of Baxter may, if
approved by the voters at an election as required under Minnesota Statutes, section 297A.99,
subdivision 3, allocate the revenues received from the taxes authorized by subdivisions 1
and 2 to pay for projects in the city, including the costs of collecting and administering the
tax and securing and paying debt service on bonds issued to finance all or part of the
following projects, including property acquisition:
new text end

new text begin (1) $51,000,000 for upgrades and improvements to the water and wastewater utility
systems;
new text end

new text begin (2) $16,000,000 for improvements to street infrastructure and safety improvements to
streets affected by regional Highways 371 and 210; and
new text end

new text begin (3) $10,000,000 for construction of a new public safety facility.
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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 2.

Laws 2006, chapter 259, article 3, section 10, subdivision 4, as amended by Laws
2014, chapter 308, article 3, section 25, is amended to read:

Subd. 4.

Bonds.

(a) The city of Baxter, pursuant to the approval of the voters at the
November 2, 2004, referendum authorizing the imposition of the taxes in this section, may
issue general obligation bonds of the city, in one or more series, in the aggregate principal
amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph
(a). The debt represented by the bonds is not included in computing any debt limitations
applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61,
to pay the principal of and interest on the bonds is not subject to any levy limitation or
included in computing or applying any levy limitation applicable to the city of Baxter.

(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general election
to extend the tax under this section, may issue general obligation bonds of the city, in one
or more series, in the aggregate principal amount not to exceed (1) $32,000,000 plus an
amount equal to the costs of issuance of the bonds to finance the projects listed in subdivision
3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount equal to the costs
of the issuance of the bonds to finance the project listed in subdivision 3, paragraph (b),
clause (3). The debt represented by the bonds is not included in computing any debt
limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable to the city
of Baxter.

new text begin (c) The city of Baxter may issue bonds under Minnesota Statutes, chapter 475, to finance
all or a portion of the costs of the projects authorized in subdivision 3, paragraph (c), and
approved by voters as required under Minnesota Statutes, section 297A.99, subdivision 3,
paragraph (a). The aggregate principal amount of bonds issued for this purpose must not
exceed $77,000,000, plus an amount applied to the payment of costs of issuing the bonds.
The bonds may be issued as general obligations of the city and may be paid from or secured
by any funds available to the city, 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. 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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 3.

Laws 2006, chapter 259, article 3, section 10, subdivision 5, as amended by Laws
2014, chapter 308, article 3, section 26, is amended to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire
at the earlier of a date 12 years after the imposition of the tax or when the Baxter City
Council first determines that the amount of revenues raised from the taxes to pay for the
projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds
issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the
expiration of the taxes and retirement of the bonds shall be placed in a capital project fund
of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
time if the city of Baxter 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 Baxter may, by ordinance,
extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in
paragraph (a) if approved by the voters of the city at a general election held in 2014. The
question put to the voters must indicate that an affirmative vote would extend the imposition
of the taxes through 2037 or until an additional $40,000,000, plus an amount equal to interest
and issuance costs associated with bonds issued under subdivision 4, paragraph (b), above
the initial amount authorized to pay for $15,000,000 in bonds and associated bond cost and
projects, listed in subdivision 3, paragraph (a), is raised. If extended under this paragraph,
the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an
additional $40,000,000, plus an amount equal to interest and issuance costs associated with
bonds issued under subdivision 4, paragraph (b), above the amount authorized under
paragraph (a), is raised, or (2) December 31, 2037.

new text begin (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Baxter may, by ordinance,
extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in
paragraph (a) if approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). If extended under this paragraph, the taxes authorized
in subdivisions 1 and 2 will terminate at the earlier of (1) when an additional $77,000,000,
plus an amount equal to interest and issuance costs associated with bonds issued under
subdivision 4, paragraph (c), above the amount authorized under paragraphs (a) and (b), is
raised, or (2) 20 years after the tax is extended.
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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end