Owatonna; local sales and use tax imposition authorized, and use of certain other revenues authorized.

Minnesota House Bill HF3390, introduced on February 17, 2026, authorizes the city of Owatonna to impose a local sales and use tax of 0.5%, contingent upon voter approval in a general election. The revenue generated is designated for financing the construction of a community center, with an initial funding target of $75 million, plus associated bonding costs. The city is also permitted to issue bonds up to $75 million, secured by the tax revenues and the city's full faith and credit. The tax is set to expire either 25 years after its imposition or when the city determines sufficient funds have been collected to cover the project and bond costs. Any remaining funds after these expenses may be allocated to the city's general fund. Additionally, the city may utilize remaining revenues from a previously authorized local tax for the same purposes specified for the new tax. ([house.mn.gov](https://www.house.mn.gov/bills/Info/HF3390/94/2025/0?utm_source=openai))

While specific media coverage on HF3390 is limited, similar local sales tax initiatives in Minnesota have received favorable responses. For instance, in 2023, numerous Minnesota cities and counties sought legislative approval to place local sales tax hike proposals on ballots, aiming to fund infrastructure and community projects such as parks and community centers. These measures garnered significant support, with 18 out of 21 approved in 2022. This trend suggests that Owatonna's proposal may align with a broader community interest in funding local development through dedicated sales taxes. ([axios.com](https://www.axios.com/local/twin-cities/2023/02/21/local-sales-tax-proposals-minnesota-legislature-ballots?utm_source=openai))

Opposition to local sales tax increases in Minnesota has been noted, particularly among some lawmakers who view such taxes as regressive and disproportionately affecting lower-income residents. For example, in 2023, House Tax Chair Aisha Gomez criticized sales taxes for their regressive nature. This perspective indicates that HF3390 may face scrutiny from those concerned about the tax's impact on vulnerable populations. ([axios.com](https://www.axios.com/local/twin-cities/2023/02/21/local-sales-tax-proposals-minnesota-legislature-ballots?utm_source=openai))