SF4606

Purpose

• Allow Sherburne County to adopt a local sales and use tax (0.25%) if voters approve, to fund the construction and operation of a law enforcement center that includes a jail, and to cover related administration costs.

Main Provisions

• Subdivision 1 — Tax authorization

  • Sherburne County may impose a 0.25% local sales and use tax, in addition to any other local taxes, if approved by voters as required by law.
  • Administration and collection follow the same rules as the referenced state statutes.

• Subdivision 2 — Use of tax revenues

  • Revenue from the tax must first pay the costs of collecting and administering the tax.
  • Revenue may also finance up to $75,000,000 plus associated bonding costs for a law enforcement center (including a jail).

• Subdivision 3 — Bonding authority

  • The county may issue bonds (under the state bond law) to finance all or part of the project costs, with total principal not exceeding $75,000,000 plus issuance costs.
  • Bonds may be paid from or secured by any money available to the county, including the tax revenues.
  • Bond issuance is not subject to certain debt limits in state law and does not count against the county’s debt limit.
  • Any levy to pay principal and interest on the bonds is not subject to levy limitations.
  • A separate election to approve the bonds under other statutes is not required.

• Subdivision 4 — Termination of taxes

  • The tax expires when the sooner of: 20 years after first imposition, or when revenues are enough to pay project costs plus bond costs (and related costs) as approved by voters.
  • Any remaining money after paying costs goes to the city’s general fund.
  • The tax may end earlier if the city passes an ordinance to terminate it.

Significant Changes to Existing Law

• Creates a new local sales and use tax in Sherburne County (0.25%) tied to funding a specific public project.
• Expands county bonding authority for this project and allows bonds to be issued without triggering certain state debt or levy limits.
• Removes the need for a separate bond election in this context.
• Establishes a defined sunset/termination framework (20-year maximum or sooner if project costs are paid).

Impact and Implications

• Public funding mechanism established for a law enforcement center, including a jail.
• Revenue is dedicated to project costs and related tax administration, not general funds beyond discretionary assignment once costs are covered.
• Possible longer-term tax impact on local shoppers and businesses within the county, contingent on voter approval.

Key Procedures and Triggers

• Voter approval is required for the tax itself (per existing statutes).
• Bonding authority and debt-related provisions are designed to streamline financing without additional debt-limit constraints or separate bond elections.

Administrative References

• Tax and project administration follow Minnesota statutes related to local taxes and debt (e.g., 297A.99; Chapter 475; references to 275.60 and 275.61 for debt rules).

Potential Oversight

• The county retains control over bond issuance, debt management, and sunset timing, subject to voter-approved tax and project viability.

Relevant Terms - Sherburne County - local sales and use tax - 0.25% tax (one-quarter percent) - voters / voter approval - Minnesota Statutes 297A.99 - law enforcement center - jail - bonding / bonds - Chapter 475 - debt limit / levy limitation - issuance costs - project costs - termination / sunset - general fund (city) - tax administration and collection - separate election (not required for bonds)