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Kindred council approves first reading to remove $50 single-transaction sales-tax cap
Summary
The Kindred City Council approved the first reading of Ordinance 2026-114 to remove the $50 cap on sales tax per transaction, a change officials said would stabilize monthly tax deposits by reducing state refund requests and help offset property-tax levy limits.
The Kindred City Council approved the first reading of Ordinance 2026-114 on April 1, 2026, to remove the $50 maximum city sales tax cap on a single transaction.
Council members said eliminating the cap is meant to steady monthly sales-tax revenues by preventing large refund requests to the State Tax Commissioner that can reduce monthly deposits. The council also discussed that other communities have removed caps to compensate for a 3% property-tax cap affecting the general fund levy.
The first reading was approved by roll-call vote with Council Member Ronningen moving and Council Member Peraza seconding. The ordinance will return for subsequent readings and final adoption according to the city’s ordinance process.
No specific revenue projections or modeled fiscal impacts were included in the meeting minutes; the council discussion focused on policy rationale and consistency of sales-tax receipts rather than a dollar estimate. The council did not take a final adoption vote at the April 1 meeting.
