SF 4722

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/24/2026 10:55 a.m.

A bill for an act
relating to taxation; authorizing the city of St. Cloud to impose a local sales and
use tax.

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

Section 1. new text begin CITY OF ST. CLOUD; 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 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of St. Cloud
may impose by ordinance a sales and use tax of one-quarter 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 authorized 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 The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and:
new text end

new text begin (1) to finance up to $7,000,000, plus associated bonding costs, for an outdoor water park
adjacent to the St. Cloud Aquatics Center; or
new text end

new text begin (2) to otherwise fund up to $7,000,000 for an outdoor water park adjacent to the St.
Cloud Aquatics Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority; voter approval. 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 project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $7,000,000, 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 1. 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 (c) Voter approval as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), applies regardless of whether the city issues bonds under paragraph (a) or
otherwise funds the project authorized in subdivision 2.
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 authorized under subdivision 1 expires at the earlier of (1) three
years after the tax is first imposed, or (2) when the city council determines that the amount
received from the tax is sufficient to pay for the project costs authorized under subdivision
2 if approved by voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus, if applicable, 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, must be placed in the
general fund of the city. The tax authorized 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 St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end