SF 4872

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:20 a.m.

A bill for an act
relating to taxation; modifying local sales tax use of revenue in the city of
Minneapolis; modifying Minneapolis downtown taxing area; amending Minnesota
Statutes 2024, section 297A.994, subdivision 4; Laws 1986, chapter 400, section
44, as amended.

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

Section 1.

Minnesota Statutes 2024, section 297A.994, subdivision 4, is amended to read:

Subd. 4.

General fund allocations.

(a) The commissioner must retain and deposit to
the general fund the following amounts, as required by subdivision 3, clause (3):

(1) for state bond debt service support beginning in calendar year 2021, and for each
calendar year thereafter through calendar year 2046, periodic amounts so that not later than
December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
deposited in the general fund. To determine aggregate present value, the commissioner must
consult with the commissioner of management and budget regarding the present value dates,
discount rate or rates, and schedules of annual amounts. The present value date or dates
must be based on the date or dates bonds are sold under Minnesota Statutes 2022, section
16A.965, or the date or dates other state funds, if any, are deposited into the construction
fund. The discount rate or rates must be based on the true interest cost of the bonds issued
under Minnesota Statutes 2022, section 16A.965, or an equivalent 30-year bond index, as
determined by the commissioner of management and budget. The schedule of annual amounts
must be certified to the commissioner by the commissioner of management and budget and
the finance officer of the city;

(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities
Authority beginning in calendar year 2021, and for each calendar year thereafter through
calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
this purpose in that calendar year under section 473J.13, subdivision 4;

(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority
beginning in calendar year 2021, and for each calendar year thereafter through calendar
year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose
in that calendar year under section 473J.13, subdivision 2;

(4) to capture increases in taxes imposed under the special law, for the benefit of the
Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar
year thereafter through 2046, there shall be deposited to the general fund in proportionate
periodic payments in the following year, an amount equal to the lesser of new text begin the amounts as
calculated under item (i) or (ii), not to exceed $2,300,000 new text end :

(i)(A) 50 percent of the difference, if any, by which the amount of the net annual taxes
for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
$1,000,000, inflated at two percent per year since 2011, minus

(B) 25 percent of the difference, if any, by which the amount of the net annual taxes for
the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
$3,000,000, inflated at two percent per year since 2011; or

(ii) the amount of the net annual taxes for the preceding year multiplied by three percent;
and

(5) if the bonds under section 16A.965 are defeased, redeemed, or paid in full, the
commissioner of management and budget and finance officer of the city must agree to a
revised schedule of annual amounts under clause (1). The revised schedule of annual amounts
must factor in a discount rate equal to zero percent and otherwise consistent with the
methodology previously agreed upon by the parties.

(b) The Minnesota Sports Facility Authority must use the amounts available from the
deposits under paragraph (a), clause (4), for capital repairs, replacements, and improvements
for the stadium and stadium infrastructure.

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 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, article
2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:

Sec. 44. DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city of
Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the portion
of the Mississippi River between I-35W and Washington Avenue, the portion of Washington
Avenue between the river and I-35W, the portion of I-35W between Washington Avenue
and deleted text begin 8th Street deleted text end new text begin Portland Avenue new text end South, the portion of 8th Street South between I-35W and
Portland Avenue South, the portion of Portland Avenue South between 8th Street South
and I-94, the portion of I-94 from the intersection of Portland Avenue South to the
intersection of I-94 and deleted text begin the Burlington Northern Railroad tracks deleted text end new text begin Plymouth Avenue North new text end ,
the portion of deleted text begin the Burlington Northern Railroad tracks from I-94 deleted text end new text begin Plymouth Avenue North
to the Mississippi River from Plymouth Avenue North and the Mississippi River south new text end to
Main Street and including Nicollet Island, and the portion of Main Street to Hennepin
Avenue and the portion of Hennepin Avenue between Main Street and 2nd Street S.E., and
the portion of 2nd Street S.E. between Main Street and Bank Street, and the portion of Bank
Street between 2nd Street S.E. and University Avenue S.E., and the portion of University
Avenue S.E. between Bank Street and I-35W, and by I-35W from University Avenue S.E.,
to the river. The downtown taxing area excludes the area bounded on the south and west
by Oak Grove Street, on the east by Spruce Place, and on the north by West 15th Street.
The downtown taxing area also excludes any property located in a zone that is contained
in chapter 546 of the Minneapolis Zoning Code of Ordinances on which a restaurant with
a wine license is operated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2026.
new text end