HF 1490

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/22/2021 02:39pm

A bill for an act
relating to taxation; authorizing the city of Crosslake to impose a local sales and
use tax for specified projects.

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

Section 1. new text begin CITY OF CROSSLAKE; TAX 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Crosslake 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.
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 Crosslake 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) $2,000,000 plus associated bonding costs for modifications to a bio-solids treatment
facility;
new text end

new text begin (2) $1,600,000 plus associated bonding costs for expansion of sewer service to the CSAH
66/Moonlight Service Area; and
new text end

new text begin (3) $2,400,000 plus associated bonding costs for expansion of sewer service to the
Daggett Lake Service Area.
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 Crosslake may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed: (1) $2,000,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; (2) $1,600,000 for the projects listed
in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing the
bonds; and (3) $2,400,000 for the project listed in subdivision 2, clause (3), plus an amount
applied to the payment of costs of issuing the bonds. The bonds may be paid from or secured
by any funds available to the city of Crosslake, 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.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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
earlier of: (1) 15 years after the tax is first imposed; 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 the projects approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including
interest costs, related to the issuance of the bonds authorized in subdivision 3. Any funds
remaining after payment of the allowed costs due to timing of the termination under
Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. 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 Crosslake and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end