HF 113

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; authorizing the city of Cloquet to 
  1.3             impose a local sales tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF CLOQUET; TAXES AUTHORIZED.] 
  1.6      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.7   Minnesota Statutes, section 477A.016, or any other provision of 
  1.8   law, ordinance, or city charter, the city of Cloquet may impose 
  1.9   by ordinance a sales and use tax of up to one-half of one 
  1.10  percent for the purpose specified in subdivision 3.  Except as 
  1.11  otherwise specifically provided in this section, the provisions 
  1.12  of Minnesota Statutes, section 297A.99, govern the imposition, 
  1.13  administration, collection, and enforcement of the tax 
  1.14  authorized under this subdivision. 
  1.15     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.16  Minnesota Statutes, section 477A.016, or any other provision of 
  1.17  law, ordinance, or city charter, the city of Cloquet may impose 
  1.18  by ordinance, for the purposes specified in subdivision 3, an 
  1.19  excise tax of up to $20 per motor vehicle, as defined by 
  1.20  ordinance, purchased or acquired from any person engaged within 
  1.21  the city in the business of selling motor vehicles at retail. 
  1.22     Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  1.23  authorized by subdivisions 1 and 2 must be used by the city to 
  1.24  pay the cost of collecting the taxes and to pay for the 
  2.1   following projects: 
  2.2      (1) construction and equipment of a senior and community 
  2.3   center; 
  2.4      (2) construction and improvements to park land along the St.
  2.5   Louis river; and 
  2.6      (3) extension of water and sewer lines and other 
  2.7   improvements to city infrastructure for expansion of a city 
  2.8   industrial park. 
  2.9      Authorized expenses include, but are not limited to, 
  2.10  acquiring property, paying construction, and operating expenses 
  2.11  related to the development of the facility, and paying debt 
  2.12  service on bonds or other obligations, including lease 
  2.13  obligations, issued to finance the construction, expansion, or 
  2.14  improvement of the facility. 
  2.15     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.16  under Minnesota Statutes, chapter 475, to finance the capital 
  2.17  expenditure and improvement projects described in subdivision 3. 
  2.18  An election to approve the bonds under Minnesota Statutes, 
  2.19  section 475.58, is not required. 
  2.20     (b) The issuance of bonds under this subdivision is not 
  2.21  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.22     (c) The bonds are not included in computing any debt 
  2.23  limitation applicable to the city, and the levy of taxes under 
  2.24  Minnesota Statutes, section 475.61, to pay principal of and 
  2.25  interest on the bonds is not subject to any levy limitation.  
  2.26     (d) The sales and use and excise taxes authorized in this 
  2.27  section may be pledged to and used for the payment of the bonds 
  2.28  and any bonds issued to refund them only if the bonds and any 
  2.29  refunding bonds are general obligations of the city. 
  2.30     Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  2.31  subdivisions 1 and 2 expire at the earlier of (1) 20 years, or 
  2.32  (2) when the city council determines that sufficient funds have 
  2.33  been received from the taxes to finance the capital and 
  2.34  administrative costs for the acquisition, construction, 
  2.35  expansion, and improvement of the facility described in 
  2.36  subdivision 3, plus the additional amount needed to pay the 
  3.1   costs related to issuance of bonds under subdivision 4, 
  3.2   including interest on the bonds.  Any funds remaining after 
  3.3   completion of the project and retirement or redemption of the 
  3.4   bonds may be placed in the general fund of the city.  The taxes 
  3.5   imposed under subdivisions 1 and 2 may expire at an earlier time 
  3.6   if the city so determines by ordinance. 
  3.7      [EFFECTIVE DATE.] This section is effective the day after 
  3.8   compliance by the governing body of the city of Cloquet with 
  3.9   Minnesota Statutes, section 645.021, subdivision 3.