HF 3148

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 11:34am

A bill for an act
relating to taxation; authorizing the city of East Grand Forks to impose a local
sales and use tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota
Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
or city charter, and as approved by the voters at a special election on March 7, 2016, the
city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax
authorized under subdivision 1 must be used by the city of East Grand Forks to pay the
costs of collecting and administering the tax and to finance the capital and administrative
costs of improvement to the city public swimming pool. Authorized expenses include,
but are not limited to, paying construction expenses related to the renovation and the
development of these facilities and improvements, and securing and paying debt service
on bonds issued under subdivision 3 or other obligations issued to finance improvement of
the public swimming pool in the city of East Grand Forks
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of East Grand Forks may issue bonds
under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the
facilities authorized in subdivision 2. The aggregate principal amount of bonds issued
under this subdivision may not exceed $2,820,000, plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by
any funds available to the city of East Grand Forks, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the
city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
to pay principal and interest on the bonds is not subject to any levy limitation. A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at
the later of: (1) five years after the tax is first imposed; or (2) when the city council
determines that $2,820,000 has been received from the tax to pay for the cost of the
projects authorized under subdivision 2, plus an amount sufficient to pay the costs related
to issuance of the bonds authorized under subdivision 3, including interest on the bonds.
Any funds remaining after payment of all such costs and retirement or redemption of the
bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1
may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end