2025 Session Last amended: 1989 session

§ 475.74 — Law Limiting Taxes Not Applicable

Plain-Language Summary

This section protects the repayment of general obligation bonds in large cities and certain school districts by exempting bond repayment levies from tax rate limitations. Cities of the first or second class and qualifying large independent school districts may levy property taxes to pay general obligation bonds without being limited by any statutory tax rate caps. The same unlimited levy authority applies to make up shortfalls in any prior debt service levies.

475.74 LAW LIMITING TAXES NOT APPLICABLE.

The provisions of any law limiting taxes shall not limit the power of any city of the first or second class or any independent school district in any city of the first class, or any special school district in a city of the second class having a population of not less than 28,000 nor more than 32,000 according to the 1950 federal census, to levy taxes to pay its general obligation bonds nor shall such provisions limit the power of any municipality to levy taxes to make good any deficiency in any prior levies made pursuant to section 475.61. The governing body shall levy such taxes without limitation as to rate or amount.

History:

1949 c 682 s 24; 1951 c 422 s 8; 1957 c 43 s 1; 1957 c 743 s 1; 1Sp1989 c 1 art 5 s 43

History: History: 1949 c 682 s 24; 1951 c 422 s 8; 1957 c 43 s 1; 1957 c 743 s 1; 1Sp1989 c 1 art 5 s 43

Practical Notes

This provision is important for bondholders and bond buyers in large Minnesota cities and school districts — it ensures that the full taxing power behind general obligation bonds is truly unlimited for debt service purposes. Cities and school districts cannot argue that statutory levy limits prevent them from collecting enough taxes to pay their bonds. This unlimited levy authority is one of the features that makes general obligation bonds particularly secure investments.

Source: Minnesota Office of the Revisor of Statutes