Bill
HF 5081
St Paul local sales tax revenues may fund specific street/bridge and parks projects via approved bonds, with an amended use resolution and state auditor oversight.
Jurisdiction: Minnesota (St. Paul local sales tax)
Session: 2025-2026
Author/Sponsors: Rep. Lee (chief), with co-sponsors Samakab Hussein, Hollins, Pérez-Vega
Status: First reading and referred to the House Committee on Taxes (as of 4/27/2026)
Publication: HF No. 5081, introduced 4/27/2026
Effective date: Retroactive to May 24, 2023, without local approval (section 1, proposed to be effective under Minnesota law, 645.023, subd. 1)
New or modified provisions: Section 1 amends Laws 1993, ch. 375, art. 9, sec. 46, subdiv. 2b (as added by Laws 2023, ch. 64, art. 10, sec. 3) to redefine the use of revenues from the St. Paul local sales tax.
Main purpose and intent
- To modify and clarify how revenues from the St. Paul local sales and use tax are used by the city of St. Paul.
- Specifically, to authorize or reaffirm investment levels for approved improvements and to set conditions around bond financing and debt service related to those projects.
- To retroactively apply the changes to May 24, 2023, aligning with state law provisions governing local option taxes.
Key provisions and changes (Section 1)
- Subdivision 2b, paragraph (a) (Revenues use):
- Revenue uses must be directed to:
1) Costs of collecting and administering the local sales tax.
2) Financing all or part of projects in St. Paul, including securing and paying debt service on bonds issued under subdivision 3a.
- Specific project investment authorizations:
- Item (1): $738,000,000 (plus associated bonding costs) for improvements to streets and bridges.
- Item (2): $246,000,000 (plus associated bonding costs) for capital improvements to St. Paul parks and recreation facilities.
- The wording uses exceptions to some state statutory limits on bonding (notwithstanding certain provisions of Minnesota Statutes, section 297A.99, subdivisions 2 and 3, etc.), indicating these are intended to supersede or modify standard bonding constraints for these projects.
- Subdivision 2b, paragraph (b): The city must adopt an amended resolution authorizing use of the revenues for the specific purposes listed in paragraph (a)(1) item (ii) (i.e., parks and recreation facilities) and submit the resolution to the state auditor by August 31 of the year the city presents the tax for voter approval under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The amended resolution must specify the purposes for the revenues.
- Subdivision 2b, paragraph (c): If the city does not adopt and submit the amended resolution, the voter-approved question must not include, and revenues must not be used for, the purpose specified in paragraph (a)(1), item (ii) (parks and recreation facilities).
Significant procedural or timeline aspects
- The bill contemplates an amended resolution process for the use of revenues, requiring formal action by the city to authorize specific purposes for the receipts from the tax.
- The amended resolution must be submitted to the state auditor by August 31 in the year the city presents the tax for voter approval.
- The voter approval process under Minnesota Statutes, section 297A.99, subdivision 3, requires that the ballot question indicate the purposes for which the revenues must be used, as specified in the amended resolution.
- If the amended resolution is not adopted/submitted, the ballot question must not include the parks and recreation facility use (item (ii)) as a purpose for the tax revenues.
- Effective date is retroactive to May 24, 2023, even without local approval, under Minnesota Statutes, section 645.023, subdivision 1.
Potential impact
- Financial planning and debt: Sets explicit large-scale capital investment goals for St. Paul (streets/bridges and parks/recreation facilities) and ties funding to local sales tax revenues and bond financing.
- Local governance: Requires the city to adopt and submit an amended resolution detailing permissible uses and to secure state auditor oversight, ensuring alignment with voter-approved purposes.
- Tax policy: Affects how the St. Paul local option sales tax receipts can be allocated and bonded, potentially influencing long-term financing strategies for municipal infrastructure.
- Retroactive applicability: Changes apply to actions and authorizations dating back to May 24, 2023, potentially affecting past financial planning or bond issuances if interpreted to govern previously approved projects.
Notes
- The bill focuses on the use and earmarking of revenues from the St. Paul local sales tax and the associated bonding for major infrastructure projects.
- It does not appear to alter the total tax rate or general framework of the local tax, but modifies purposes and procedural steps for using the revenues.
Compiled from official sources — confirm details with the bill’s official record.
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