MN HF1239

City of Little Falls may impose a local sales and use tax of one-half of one percent upon voter approval at a general election, governed by Minnesota Statutes section 297A.99.

Tax revenues must be used to pay collection and administration costs and fund up to $17 million for construction of a community recreational facility including a gymnasium with indoor track, multipurpose rooms, office and storage space, and outdoor aquatic recreation facilities.

City may issue bonds under Minnesota Statutes chapter 475 with an aggregate principal amount not exceeding $17 million plus amounts for capitalized interest and issuance costs, with bonds exempt from debt and levy limitations.

Tax imposed under this bill expires at the earlier of 30 years after first imposition or when the city council determines sufficient funds have been collected to pay project costs and bond-related expenses.

Any remaining funds after payment of allowed costs shall be placed in the city's general fund, and the city may terminate the tax earlier by ordinance.