Minneslate Logo

SF5006

City of St. Peter local sales tax provision modification
Legislative Session 94 (2025-2026)

AI Generated Summary

Purpose

  • Authorize the city of St. Peter to impose a local sales and use tax of one-half of one percent (0.5%) if approved by voters at a general election.
  • Make this local option tax in addition to any other local sales and use taxes the city may have.
  • Establish how the tax is administered, collected, and governed, referencing state law, and set the framework for funding specific local projects.

Main Provisions

  • Tax authorization and limits:
    • The city may impose a 0.5% sales and use tax by ordinance, subject to voter approval at a general election.
    • The tax is in addition to existing local sales and use taxes and follows Minnesota law (Minnesota Statutes 297A.99, etc.).
    • The city may modify the tax amount or structure as described in later subdivisions (subdivisions 2 to 4).
  • Governing law and administration:
    • Imposition, administration, collection, and enforcement of the tax follow the provisions of Minnesota Statutes section 297A.99.
    • The tax is a local option authorized under state law and is contingent on voter approval.

Revenue Use and Projects

  • Use of tax revenues:
    • Revenues from the tax must be used to cover the costs of collecting and administering the tax.
    • Revenues may also be used for specific projects in the city, plus debt service on bonds issued to finance those projects.
  • Specific projects and amounts (subject to securing and paying debt service):
    • Construction of a new fire station: up to $9,121,000.
    • Debt service on bonds issued to finance the fire station project (amount not to exceed the applicable debt service need, e.g., up to $1,990,000 noted in the text).
    • Phase 2 of Gorman Park improvements: up to $2,195,000.

Impact on State Law and Local Authority

  • This act amends existing law to adjust or clarify the authorization and use of a St. Peter local option sales tax, aligning with the referenced Laws 2021 First Special Session chapters and sections.
  • The tax is narrowly targeted to the City of St. Peter and the specified local projects, with debt financing connected to those projects.

Process and Oversight

  • Voter approval required: The tax may be imposed only if approved by voters at a general election, as required by law.
  • Local ordinance: The city must enact the tax by ordinance, consistent with the statute and approved by voters.
  • Debt and administration: Revenue use includes costs of administration and debt service, as well as financing the listed projects.

Significance / What changes

  • Creates a new, voter-approved local option sales tax for St. Peter (0.5%) to fund municipal projects.
  • Allows the city to fund a new fire station and Phase 2 improvements to Gorman Park, with associated debt service funded by the tax revenues.
  • Establishes defined funding targets and the requirement to use proceeds for administration and specified capital projects.

Relevant Terms - sales and use tax - local option tax - one-half of one percent (0.5%) - ordinance - general election - voters - Minnesota Statutes 297A.99 - use of revenues - costs of collecting and administering - debt service - bonds - construction of a new fire station - Phase 2 of Gorman Park improvements - City of St. Peter

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 09, 2026SenateActionIntroduction and first reading
April 09, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Explicit authorization for a local sales and use tax by ordinance (0.5%) for the City of St. Peter."
      ],
      "removed": [],
      "summary": "The bill uses the authority in Minnesota Statutes 297A.99 subdivision 1 to allow the City of St. Peter to impose a local sales and use tax, subject to voter approval, for certain purposes described in the bill.",
      "modified": []
    },
    "citation": "297A.99",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill cites 477A.016 in a not-withstanding clause, but does not itself amend or add provisions to 477A.016 within the text provided.",
      "modified": []
    },
    "citation": "477A.016",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes 297A.99 subdivision 3, indicating that voter approval is required under that subdivision for the local tax.",
      "modified": [
        "Notes that approval by the voters is required under subdivision 3."
      ]
    },
    "citation": "297A.99",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [
        "Allows modification of the local tax as provided in subdivisions 2 to 4."
      ],
      "removed": [],
      "summary": "The bill not-withstands subdivision 2 (and its paragraphs) to allow the city to modify the tax as provided in subdivisions 2 to 4.",
      "modified": [
        "Notwithstanding 297A.99 subdivision 2, the city may modify the tax within the framework of subdivisions 2 to 4."
      ]
    },
    "citation": "297A.99",
    "subdivision": "2"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

Loading…