Bill Introduced Allowing Avon to Collect Half-Cent Sales Tax
AVON -- A bill has been introduced in the Minnesota State Legislature that will allow Avon to implement a half-cent sales tax. State Senator Jeff Howe has authored the bill in the Senate.
Avon voters approved the idea 68 percent to 32 percent during the November election.
City Administrator Jodi Austing-Traut says, if the bill is passed by the legislature and signed by the Governor, they could start collecting the additional tax later this year.
Council is planning on the earliest date being October 1st of this year, but if we're not able to get things done and completed by then, then January 1st of next year is when we'll implement it.
Austing-Traut says the revenue collected from the half-cent sales tax would be used for street improvements in Avon. She says the Department of Revenue retains a portion of the funds in the first year of the program.
So the first year we will only receive about $17,000 because the Department of Revenue will retain the rest. So that first year is not going to be enough funds to do a project. But I would say in 2021 the council will begin to look at prioritizing which projects they want to look at first.
The half-cent sales tax would be in place until December 31st, 2045 or until it raises $1.5 million whichever comes first.