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Local General Sales Taxes Authorized by Special Legislation

Taxes That Were Never Imposed and Authority to Impose Has Expired

Bemidji

Initially authorized Laws 1998, ch. 389, art. 8, § 38
Date imposed Never imposed. The Bemidji City Council did not hold the required referendum at the 1998 general election.
Additional legislative action None
Tax authorized A sales tax of up to one-half of 1 percent. A complementary use tax was authorized, as well as a flat tax of up to $20 per motor vehicle purchased within the city from anyone engaged in the retail sale of motor vehicles.
Required city action to impose the tax The tax needed approval by city voters at the 1998 general election.
Allowed uses of the tax proceeds Up to $25 million for construction and development of a convention center and arena.
Tax administration The tax would have been collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax would have expired when revenues sufficient to pay for the convention center construction costs and authorized bonds up to $25 million were raised.
Miscellaneous In 1998, the legislature began adding the requirement that the referendum on the related bonds state that although the sales tax was pledged to pay the bonds, the bonds were still general obligation bonds, guaranteed by the city's property taxes.

Bloomington

Initially authorized Laws 1986, chapter 391, § 3
Date imposed Never imposed. The Bloomington City Council did not pass the ordinance to impose the tax before the legislature repealed the authorization.
Additional legislative action Laws 1987, chapter 268, article 4, § 25, repealed the tax authorization.
Tax authorized A sales tax of up to 1 percent on sales made in a special sales district consisting of the Mall of America site. No complementary use tax was authorized.
Required city action to impose the tax A city ordinance designating the sales tax district and the tax rate.
Allowed uses of the tax proceeds To pay for financing and debt service payments for highway improvements and other public improvements within the Mall of America project area. No money could be used for operating, improving, or promoting the mall itself.
Tax administration The city could choose to have the local tax collected by the Commissioner of Revenue with the state tax. If collected by the state, the tax revenue was to be returned to the city on a quarterly basis, net the cost to the state of collecting and administering the tax.
Tax expiration Tax required to expire in year when Mall of America site improvement bonds expire.
Miscellaneous The authorizing law also allowed the city to impose up to a 5 percent lodging tax and up to a 5 percent liquor tax. Proceeds from those taxes could be used for highway improvements or citywide improvements and public services. These taxes were imposed.

Central Minnesota cities

(St. Cloud, St. Joseph, Sartell, Sauk Rapids, and Waite Park)

Initially authorized Laws 1998, ch. 389, art. 8, § 44
Additional legislative action Laws 1999, ch. 243, art. 4, §§ 14 to 16
Date imposed Never imposed. The required referendum was defeated in all cities except Sartell. These cities were granted new authority in Laws 2002, chapter 377, article 11, § 2, which was imposed.
Tax authorized Each of the cities may impose a sales and use tax, of up to one-half of 1 percent in its jurisdiction. The cities also may impose a flat tax of up to $20 per motor vehicle acquired or purchased within the city from a retail seller of motor vehicles. The same legislation also authorizes the option of imposing a 1 percent local restaurant and/or lodging tax.
Required city action to impose the tax For each city to impose the sales and use tax, or any of the other taxes, the voters of that city must approve the tax at the 1998 general election or at an election held on the first Tuesday of November 1999. The original law required that if the entity in charge of constructing the event center did not feel that sufficient revenues to pay for the construction would be raised by the cities imposing the local taxes then none of the taxes would go into effect. The 1999 law modifies this to allow the tax to go into effect in cities that pass the referendum at least until 2007, even if sufficient funding for the event center is not in place.
Allowed uses of the tax proceeds The tax will fund the cost of acquiring, constructing, and improving the Central Minnesota Events Center and related improvements. Payment of any operating deficit during the first five years of operation also is authorized. Any revenue collected in excess of that needed to cover the event center can be returned to the participating cities in an agreed manner for "other" capital projects of regional significance such as parks and open spaces, and public space dedicated to the arts, libraries, or community centers. The 1999 law requires that if the taxes are imposed but the event center financing is not in place, that a portion of the revenues be set aside for the event center. If event center construction has not begun by December 31, 2007, the reserve money is used to pay off bonds on existing "other" projects. No bonds for "other" projects that are funded from this tax may be issued after December 31, 2008.
Tax administration The tax will be collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The authorizing legislation requires the tax to expire when funds received are sufficient to finance up to $50 million in obligations related to the Central Minnesota Events Center, as well as other obligations created by the allowed uses. The 1999 law requires that the taxes expire at the earlier of (a) 30 years or (b) when the event center, if constructed, plus all other authorized capital projects are fully funded.
Miscellaneous The 1999 law amended the authorizing language to allow the cities to impose the sales tax even if construction on the event center is delayed, so long as construction begins before December 31, 2007. Each city can choose to impose any or all of the authorized taxes, pending approval of the local voters. The imposition of any tax is on a city by city basis but the revenues from all the approved local taxes would be pooled and distributed to the projects and cities based on some joint powers or other local agreement.

Detroit Lakes

Initially authorized Laws 1998, ch. 389, art. 8, § 39
Date imposed Never imposed. The tax was defeated at the required referendum held at the 1998 general election.
Additional legislative action None
Tax authorized A sales tax of one-half of 1 percent. A complementary use tax was authorized as well as a flat tax of $20 per sale on all motor vehicle sales made in the city by persons in the motor vehicle business.
Required city action to impose the tax The tax needed to be approved by voters at the 1998 general election.
Allowed uses of the tax proceeds The tax proceeds were to be used to pay for capital and administration costs with constructing a community center, up to a total of $6 million.
Tax administration The tax would have been collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax would have expired after sufficient revenues were raised to pay for the community center construction costs and related bonds, up to the allowed $6 million construction cost.
Miscellaneous In 1998, the legislature began adding the requirement that the referendum on the related bonds state that although the sales tax was pledged to pay the bonds, the bonds were still general obligation bonds, guaranteed by the city's property taxes.

Ely

Initially authorized Laws 1992, chapter 511, article 8, § 31
Date imposed Never imposed. The tax was defeated at the required referendum.
Additional legislative action None
Tax authorized A sales tax of up to 1 percent. No complementary use tax was authorized. The law also allowed for an excise tax of up to $20 per motor vehicle purchased within the city from anyone engaged in the retail sale of motor vehicles.
Required city action to impose the tax The tax needed to be approved by voters at a general election before December 1, 1992.
Allowed uses of the tax proceeds Proceeds would have funded development and operation expenses for the Ely Wilderness Gateway community revitalization project, including convention and tourist centers and educational exhibits. Total capital and expenditures payable from revenues and bond proceeds was not to exceed $20 million.
Tax administration The tax was to be collected by the Commissioner of Revenue along with state sales taxes and remitted at least quarterly to the city, net the cost to the state of collecting and administering the tax.
Tax expiration The tax would have terminated once funds raised were sufficient to pay for costs and related bonds up to $20 million.
Miscellaneous The law would have established a nine-member citizens committee to review and approve or reject plans related to the Ely Wilderness Gateway project.

Fergus Falls

Initially authorized Laws 1998, ch. 389, art. 8, § 40
Date imposed Never imposed. The tax was defeated at the required referendum at the 1998 general election.
Additional legislative action None
Tax authorized A sales tax of up to one-half of 1 percent, as well as a complementary use tax, but neither tax would have applied to farm machinery. In addition, the law authorized a flat tax of $20 on each motor vehicle purchased within the city from those in the retail motor vehicle business.
Required city action to impose the tax The tax needed approval by voters at the general election.
Allowed uses of the tax proceeds To support development and construction of a regional conference center, community center, recreational and tourism project called Project Reach Out.
Tax administration The tax would have been collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax would have expired when revenues sufficient to finance up to $9 million for Project Reach Out and associated authorized bonds were raised, or earlier by ordinance.
Miscellaneous In 1998, the legislature began adding the requirement that the referendum on the related bonds state that although the sales tax was pledged to pay the bonds, the bonds were still general obligation bonds, guaranteed by the city's property taxes.

Garrison

Initially authorized Laws 1993, ch. 375, art. 9, sec. 47
Additional legislative action Laws 2014, ch. 308, art. 9, sec. 94
Date imposed Never imposed. The city never held the required referendum. The 2014 law repealed the enabling legislation.
Tax authorized A sales tax of up to 1 percent. No complementary use tax is authorized.
Required city action to impose the tax The tax must be approved by voters at a general or special election in the city. No time line was specified. The city filed the paperwork to indicate local approval of this special law in a timely fashion so the authority for this taxing authority does not expire.
Allowed use of the tax proceeds The tax is to fund construction of a city sewer system
Tax administration The city could choose to arrange for tax collection and enforcement or to have the Commissioner of Revenue collect. If collected by the state, proceeds were to be remitted at least quarterly to the city, net the cost to the state of collecting and administering the tax.
Tax expiration The tax would expire once any associated bonds or obligations were paid, or earlier by resolution
Miscellaneous The Garrison legislation does not have a "drop dead" date by which the city has to hold a referendum on imposing the sales tax. Therefore, the city still had the authority to impose the tax until the 2014 law repealing it.

Hutchinson

Initially authorized Laws 1998, ch. 389, art. 8, § 41
Date imposed Never imposed. The tax was defeated at the required referendum.
Additional legislative action None
Tax authorized A sales tax of up to one-half of 1 percent. A complementary use tax was authorized, as well as a flat tax of up to $20 on each motor vehicle purchased or acquired from a retail seller of motor vehicles operating within the city.
Required city action to impose the tax The tax needed to be approved by city voters at a 1998 general or special election.
Allowed uses of the tax proceeds The tax was to fund construction and improvement of a civic and community center, as well as senior and youth recreational facilities, with combined capital expenses for all authorized projects not to exceed $5 million.
Tax administration The tax would have been collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax would have expired when revenues were sufficient to finance up to $5 million for the construction project and associated authorized bonds.
Miscellaneous In 1998, the legislature began adding the requirement that the referendum on the related bonds state that although the sales tax was pledged to pay the bonds, the bonds were still general obligation bonds, guaranteed by the city's property taxes.

Luverne

Initially authorized Laws 2014, ch. 308, art. 7, sec. 7
Date imposed Never imposed
Tax authorized A sales and use tax of one-half of 1 percent
Required city action to impose the tax Approval by the city council only; no voter referendum required. The city never filed the required approval with the secretary of state as required under general law and the authority expired.
Allowed use of the tax proceeds The primary use is to fund the city's share of the Lewis and Clark water project. If revenues raised in any year exceed the city's share of debt service for that project, the city may use the excess to fund other capital projects.
Tax administration The tax is collected by the Commissioner of Revenue with the state tax, as provided under Minn. Stat. sec. 297A.99.
Tax expiration The tax terminates when the city has raised sufficient revenues to pay its portion of debt related to the water project.

Owatonna

Initially authorized Laws 1998, ch. 389, art. 8, § 42
Additional legislative action None
Date imposed Never imposed. The tax was defeated at the required referendum.
Tax authorized A sales tax of up to one-half of 1 percent. A complementary use tax was authorized, as well as a flat tax of up to $20 for each motor vehicle purchased or acquired from a retail seller of motor vehicles operating within the city.
Required city action to impose the tax The tax needed to be approved by city voters at the 1998 general election.
Allowed uses of the tax proceeds The tax would have funded infrastructure and facilities as part of Owatonna Economic Development 2000.
Tax administration The tax would have been collected by the Commissioner of Revenue with the state tax as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax would have expired when sufficient funds had been received to finance up to $5 million for the Owatonna Economic Development 2000 and associated authorized bonds, or earlier if the city so specifies by ordinance.
Miscellaneous In 1998, the legislature began adding the requirement that the referendum on the related bonds state that although the sales tax was pledged to pay the bonds, the bonds were still general obligation bonds, guaranteed by the city's property taxes.

Thief River Falls

Initially authorized Laws 1992, chapter 511, article 8, § 32
Additional legislative action None
Date imposed Never imposed. The city did not hold the required referendum at the 1992 general election and the authority expired.
Tax authorized A sales tax up to one-half of 1 percent, except for sales of major farm equipment subject to the accompanying flat tax. No complementary use tax was approved. The law also authorized a flat tax of up to $20 per motor vehicle and $20 per piece of major farm equipment purchased or acquired from anyone engaged in retail sale of motor vehicles or major farm equipment, respectively.
Required city action to impose the tax The tax needed to be approved by a majority of voters at a general election before December 1, 1992.
Allowed uses of the tax proceeds The tax would have supported a $15 million community revitalization project, the Area Tourism-Convention Facilities.
Tax administration The tax would have been collected by the Commissioner of Revenue along with state sales taxes and remitted at least quarterly to the city, net the cost to the state of collecting and administering the tax.
Tax expiration The tax would have expired once funds raised were sufficient to pay for the $15 million project and any related bonds issued.
Miscellaneous The law would have established a citizens advisory committee with power to approve or reject plans related to the project.

Willmar

Initially authorized Laws 2005, 1st spec. sess., ch. 3, art. 5, sec. 42
Date imposed January 1, 2006
Amount collected in CY 2013 $1,729,770; Last full year CY 2012, $2,064,924
Tax authorized A sales and use tax of one-half of 1 percent
Required city action to impose the tax The majority of city voters approved the tax at the November 2, 2004, general election, before the tax was authorized.
Allowed use of the tax proceeds The revenues must fund completion and expansion of the airport/industrial park; construction of hiking and biking trails and a connection between the Blue Line and civic center buildings; and purchase of a portion of the Willmar regional treatment center campus.
Tax administration The tax is collected by the Commissioner of Revenue with the state tax, as provided under Minnesota Statutes sec. 297A.99.
Date expired March 31, 2013

Winona

Initially authorized Laws 2008, ch. 366, art. 7, § 21
Date imposed Referendum never held
Tax authorized A sales and use tax of one-half of 1 percent.
Required city action to impose the tax The tax must be approved by a majority of voters at a general or special election to be held before December 31, 2009; it could then be imposed by ordinance.
Allowed uses of tax proceeds The tax may raise up to $8 million, which must be used to pay the city's share of costs for the construction of a street connection from the city of Winona to Minnesota State Highways 61 and 43, thus providing access to the city's industrial park and hospital.
Tax administration The tax is collected by the Commissioner of Revenue with the state tax, as provided under Minnesota Statutes § 297A.99.
Tax expiration The tax expires at the earlier of (1) five years or (2) when the city council determines that sufficient funds have been raised from the tax to finance the capital and administrative costs of the project. The tax imposed under subdivision 1 may expire earlier if the city so determines by ordinance.

August 2018

Political Subdivisions

Local Sales Taxes

For additional information:

See the publication Local Sales Taxes in Minnesota