HF 3546

as introduced - 91st Legislature (2019 - 2020) Posted on 02/19/2020 12:55pm

A bill for an act
relating to taxation; local sales and use; authorizing the city of Moorhead 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 MOORHEAD; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election held no later than November 8, 2022, the
city of Moorhead may impose by ordinance a sales and use tax of one-half of 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. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
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 Moorhead to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $25,000,000 plus associated bonding costs for a regional community and aquatics
center;
new text end

new text begin (2) $25,300,000 plus associated bonding costs for a regional library and city hall complex;
new text end

new text begin (3) $75,500,000 plus associated bonding costs for regional transportation improvements;
new text end

new text begin (4) $1,000,000 plus associated bonding costs for construction and equipping of a regional
inclusive playground; and
new text end

new text begin (5) $4,700,000 plus associated bonding costs for construction and renovation of regional
trails.
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 Moorhead may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $25,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $25,300,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (3) $75,500,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (4) $1,000,000 for the project listed in subdivision 2, clause (4), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (5) $4,700,000 for the project listed in subdivision 2, clause (5), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Moorhead,
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 Moorhead, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) December
31, 2048, or (2) when the city council determines that the amount received from the tax is
sufficient to pay for the project costs authorized under subdivision 2 for projects approved
by the voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph
(a), plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must 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 the governing body of the
city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end