SF 5006
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/10/2026 09:07 a.m.
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A bill for an act
relating to taxation; sales and use; modifying the city of St. Peter local sales tax;
amending Laws 2021, First Special Session chapter 14, article 8, section 17,
subdivisions 1, 2, 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision
1, is amended to read:
Subdivision 1.
Sales and use tax authorization.
new text begin (a) new text end Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of St. Peter may impose by ordinance a sales and
use tax of one-half of one percent for the purposes specified in subdivision 2.
new text begin
(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a)
and (b), the city may modify the tax authorized under paragraph (a) as provided in
subdivisions 2 to 4.
new text end
new text begin (c)new text end Except as otherwise provided in this section, the provisions of Minnesota Statutes,
section 297A.99, govern the imposition, administration, collection, and enforcement of the
tax authorized under this subdivision. The tax imposed under this subdivision is in addition
to any local sales and use tax imposed under any other special law.
Sec. 2.
Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 2,
is amended to read:
Subd. 2.
Use of sales and use tax revenues.
new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a), new text end the revenues derived from the tax authorized under
subdivision 1 must be used by the city of St. Peter to pay the costs of collecting and
administering the tax and paying for deleted text begin up todeleted text end new text begin the following projects in the city, plus an amount
needed for securing and paying debt service on bonds issued to finance all or part of the
projects:
new text end
deleted text begin $9,121,000deleted text end new text begin (1) $9,900,000new text end for construction of a new fire stationdeleted text begin , plus an amount needed
for securing and paying debt service on bonds issued to finance the projectdeleted text end new text begin ; and
new text end
new text begin (2) $1,950,000 for Phase 2 of Gorman Park improvementsnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 3.
Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 3,
is amended to read:
Subd. 3.
Bonding authority.
(a) The city of St. Peter may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the deleted text begin facilitydeleted text end new text begin projectsnew text end authorized in subdivision
2. The aggregate principal amount of bonds issued under this subdivision may not exceed
deleted text begin $9,121,000deleted text end new text begin $11,850,000new text end for the deleted text begin projectdeleted text end new text begin projectsnew text end listed in subdivision 2, plus an amount to
be applied to the payment of the costs of issuing the bonds. The bonds may be paid from
or secured by any funds available to the city of St. Peter, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
(b) The bonds are not included in computing any debt limitation applicable to the city
of St. Peter; and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 4.
Laws 2021, First Special Session chapter 14, article 8, section 17, subdivision 4,
is amended to read:
Subd. 4.
Termination of taxes.
Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 40 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for deleted text begin $9,121,000deleted text end new text begin $11,850,000new text end in project costs authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of any
bonds authorized under subdivision 3, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end