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HF 4873

St. Cloud; local sales and use tax authorized.

2025-2026 Regular Session Introduced by Dan Wolgamott

St. Cloud could adopt a local sales and use tax to fund approved city projects, with revenues earmarked for designated purposes and governed by state local-tax rules.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 4873

Summary of HF 4873 (2025-2026) — St. Cloud; Local Sales and Use Tax Authorized

Overview

  • Jurisdiction: Minnesota
  • Bill Title: St. Cloud; local sales and use tax authorized
  • Session: 2025-2026
  • Status: Introduction and first reading; referred to the House Taxes committee (as of 2026-04-09)
  • Primary Sponsor: Dan Wolgamott (co-sponsor)

Purpose and Intent

HF 4873 would authorize the city of St. Cloud to impose a local sales and use tax. The bill’s intent is to provide a dedicated local revenue source to fund public projects or services within St. Cloud, subject to specific terms, conditions, and voter or statutory requirements governing local option taxes in Minnesota.

Key Provisions (what the bill would do)

  • Authorization of Local Tax: Permits St. Cloud to enact a local sales and use tax. The local option would operate under Minnesota law governing municipal local sales taxes, including any approvals, caps, and administration requirements.
  • Tax Base and Rate (implicit expectations): The bill would establish how the tax base is defined (sales and use transactions within the city) and specify any maximum rate or tiered structure allowed under Minnesota statutes governing local taxes. If not explicitly stated in the bill text, such details would be governed by existing state law on local sales taxes.
  • Use of Revenues: Revenues generated from the local sales and use tax would be dedicated to specific purposes approved by the city (e.g., infrastructure, public safety, transit, or other capital improvements). The bill would typically require earmarking or a designated program outline, consistent with Minnesota practice for local-option taxes.
  • Approval and Referendum (typical requirements): Local option taxes in Minnesota often require a referendum or a council-approved plan with public process. HF 4873 would align with those procedures, including potential requirements for voter approval or a plan of uses and sunset provisions.
  • Administration and Collection: The tax would be collected by the Minnesota Department of Revenue (or a designated local authority) under existing administrative frameworks for local taxes, with remittance timelines, reporting, and compliance obligations outlined.
  • Transparency and Accountability: Provisions ensuring annual reporting, fiscal transparency, and auditability of revenue use and project outcomes may be included, consistent with other local tax statutes.

Who Would Be Affected

  • Residents and Visitors in St. Cloud: Those purchasing taxable goods or services in St. Cloud would pay the local sales tax, increasing the overall purchase price in relevant transactions.
  • Local Businesses: Retailers and service providers within St. Cloud would collect and remit the local tax, subject to state and local administration rules.
  • Municipal Government (St. Cloud): Would gain a new revenue source to fund approved local projects or services, with oversight requirements and reporting obligations.
  • State Revenue System: The Minnesota Department of Revenue would administer the local tax collection in coordination with the city’s plan, under state law.

Procedural and Timeline Aspects

  • Current Stage: Introduction and first reading (2026-04-09). Referred to the House Taxes committee for consideration.
  • Next Steps: If advanced, HF 4873 would undergo committee hearings, potential amendments, and floor votes. Any local tax authorization typically requires alignment with state statutes governing local option taxes, including possible local referenda, plan of uses, sunset provisions, and annual reporting.

Notes

  • The summary reflects standard characteristics of Minnesota local sales tax authorization bills. Specific numeric details (e.g., maximum rate, sunset, project list, referendum thresholds) would be defined in the bill text or in accompanying fiscal notes and conferring state law upon approval and oversight.

If you’d like, I can tailor this summary to focus on particular aspects (e.g., fiscal impact estimates, potential project categories, or comparison with other Minnesota local sales tax authorizations) once the full text or fiscal note is available.

Compiled from official sources — confirm details with the bill’s official record.

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