SF 1591

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 03:14pm

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

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

Section 1. new text begin CITY OF SCANLON; 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 3, paragraph (b), or 477A.016, or any other law or ordinance,
the city of Scanlon, pursuant to approval by the voters at the general election on November
6, 2018, may impose by ordinance a sales and use tax of up to 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 revenues. new text end

new text begin Revenues received from taxes authorized by subdivision 1
must be used by the city to:
new text end

new text begin (1) pay the costs of collecting and administering the tax;
new text end

new text begin (2) pay the capital and administrative costs of city street improvements and utility
infrastructure, including storm sewer and sanitary sewer improvements; and
new text end

new text begin (3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
finance the improvements listed in this subdivision in the city.
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 may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $400,000 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, 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,
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 (a) The tax imposed under subdivision 1 expires at the
earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines
that $400,000 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.
new text end

new text begin (b) 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 the governing body of the
city of Scanlon and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end