MN HF4129

The city of Fairmont may impose a 0.5% local sales and use tax upon voter approval at a general election.

Tax revenues must be used to fund improvement, rehabilitation, or reconstruction of streets, sidewalks, curbs, and gutters rated 40 or under on the city's biennial street rating system, up to $30,000,000, and that serve educational facilities, government facilities, or health care service providers.

The city may issue bonds under Minnesota Statutes chapter 475 of up to $30,000,000 to finance the project, with bonds exempt from debt limitations and levy limitations.

The tax expires at the earlier of 25 years after imposition or when sufficient revenue is collected to pay the $30,000,000 project costs plus bond issuance costs and interest.

Remaining funds after termination of the tax shall be placed in the city's general fund, and the city may terminate the tax earlier by ordinance.