Bill
SF 5006
St. Peter can keep a 0.5% local sales tax to fund a larger fire station and park upgrades, with bonds up to $11.85M, voter approval, and a potential 40-year sunset.
Jurisdiction: Minnesota
Purpose
- To modify the local sales tax authority and related provisions for the City of St. Peter, allowing adjustments to the existing 0.5% local sales and use tax approved by voters, and updating project scope, bonding, and sunset/termination terms.
Key Provisions
1) Authorization and modification of local sales tax
- The City of St. Peter may impose, by ordinance, a local sales and use tax of one-half of one percent (0.5%) for purposes specified in the bill.
- The tax requires voter approval at a general election (as required under Minnesota law).
- The city may modify the tax authorized, subject to subdivisions 2 to 4, indicating flexibility to adjust use of revenues, project scope, or financing.
2) Use of tax revenues (subdivision 2)
- Revenues from the authorized tax must be used by the city to:
- Pay the costs of collecting and administering the tax.
- Pay for specified city projects in the city (with updated project scope described in the bill):
- Replaces an earlier project amount with updated figures:
- Fire station construction: increased to $11,850,000 (from the prior $9,900,000).
- Phase 2 of Gorman Park improvements: $1,950,000.
- Effective date: The section becomes effective once the city complies with necessary statutory procedures (Minnesota Statutes, section 645.021, subdivisions 2 and 3).
3) Bonding authority (subdivision 3)
- The city may issue bonds to finance the costs of the projects listed in subdivision 2.
- Aggregate principal amount authorized: up to $11,850,000 (increased from $9,121,000), plus costs of issuing bonds.
- Bonds may be paid from or secured by any funds available to the city, including tax revenues from the new local tax.
- Bond issuance is not subject to certain debt-related statutory procedures (275.60 and 275.61), and no separate election is required under 475.58.
- Bonds are not counted toward city debt limits; levy limitations do not apply to the taxes to pay principal and interest.
4) Termination of taxes (subdivision 4)
- The tax expires at the earlier of:
- 40 years after first imposition, or
- The date the city determines the tax revenues are sufficient to pay the allowed project costs ($11,850,000) plus bond issuance costs (and related interest).
- Any remaining funds after paying eligible costs, due to timing of termination, go to the city general fund (subject to applicable statutory limits, with possible earlier termination at the city’s discretion).
- Effective date: As with other sections, the provision becomes effective after the city complies with Minnesota Statutes 645.021, subdivisions 2 and 3.
Additional Context
- Section references and changes align with Laws 2021, 1st Special Session chapter 14, article 8, and update the previously authorized project scope and financials for St. Peter’s local tax program.
- The bill includes a reallocation of project funding and an updated bond cap to reflect new project costs.
Impact Considerations
Sponsors
- Primary sponsor: SF5006
- Co-sponsor: Nick Frentz
Status
- Introduced and referred to Taxes (as of 2026-04-09) with first reading completed.
Note: This summary focuses on substantive provisions, funding specifics, and practical outcomes for the City of St. Peter and its residents.
Compiled from official sources — confirm details with the bill’s official record.
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