HF 3473

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/15/2022 10:57am

A bill for an act
relating to taxes; local sales and use; authorizing the city of Golden Valley 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 GOLDEN VALLEY; 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 (a) 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 as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Golden Valley 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 (b) The provision under Minnesota Statutes, section 297A.99, subdivision 3, paragraph
(a), requiring a separate question approving the use of tax revenue for each project, does
not apply to the local sales tax authorized under this section, provided that each project is
identified in a single question that limits the time to completion for each project to within
30 years from the date of approval by the voters.
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 Golden Valley 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) $17,000,000 plus associated bonding costs for construction of a new remote fire
station;
new text end

new text begin (2) $56,300,000 plus associated bonding costs for construction of a new public works
facility; and
new text end

new text begin (3) $61,500,000 plus associated bonding costs for construction of a new public safety
facility.
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 Golden Valley may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
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) $17,000,000 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) $56,300,000 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; and
new text end

new text begin (3) $61,500,000 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 (b) The bonds may be paid from or secured by any funds available to the city of Golden
Valley, 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 (c) The bonds are not included in computing any debt limitation applicable to the city
of Golden Valley, 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) 30 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
projects approved by 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 Golden Valley and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end