HF 494 Summary

• City of St. Peter may impose a one-half of one percent local sales and use tax if approved by voters at a general election, with authority governed by Minnesota Statutes section 297A.99.

• Tax revenue must be used to pay collection and administration costs and fund up to $9,121,000 for construction of a new fire station, plus debt service on related bonds.

• City may issue up to $9,121,000 in bonds under Minnesota Statutes chapter 475 to finance the fire station project, with bonds exempt from debt limitations and levy limitations.

• Tax expires at the earlier of 40 years after imposition or when sufficient revenue is collected to pay the $9,121,000 project cost and all bond-related expenses, including interest.

• Any remaining funds after allowed costs are placed in the city's general fund, and the city may terminate the tax earlier by ordinance.