HF 565

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/19/2023 02:56pm

A bill for an act
relating to taxation; modifying the local sales tax for the city of North Mankato;
authorizing additional bonding; amending Laws 2008, chapter 366, article 7, section
20, as amended.

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

Section 1.

Laws 2008, chapter 366, article 7, section 20, as amended by Laws 2017, First
Special Session chapter 1, article 5, section 17, is amended to read:

Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the voters on November 7, 2006, the city of North Mankato may impose by
ordinance a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital costs of the following projects:

(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
project;

(2) development of regional parks and hiking and biking trails, including construction
of indoor regional athletic facilities;

(3) expansion of the North Mankato Taylor Library;

(4) riverfront redevelopment; and

(5) lake improvement projects.

The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $15,000,000 plus any associated bond costs.

Subd. 2a.

Authorization to extend the tax.

Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
authorized under subdivision 1 to cover an additional deleted text begin $9,000,000 deleted text end new text begin $15,000,000 new text end in bonds,
plus associated bond costs, to fund the projects in subdivision 2 pursuant to voter approval
to extend the tax at the November 8, 2016, general election.

Subd. 3.

Bonds.

(a) The city of North Mankato, pursuant to the approval of the voters
at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
expenses for the projects described in subdivision 2, in an amount that does not exceed
$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.

(b) The city of North Mankato, pursuant to approval of the voters at the November 8,
2016, referendum extending the tax to provide additional revenue to be spent for the projects
in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 475, to pay
capital and administrative expenses for those projects in an amount that does not exceed
deleted text begin $9,000,000 deleted text end new text begin $15,000,000 new text end . A separate election to approve the bonds under Minnesota Statutes,
section 475.58, is not required.

(c) The debt represented by the bonds is 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.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of December 31, deleted text begin 2038 deleted text end new text begin 2044 new text end , or when revenues from the taxes first equal or exceed
deleted text begin $15,000,000 deleted text end new text begin $21,000,000 new text end plus the additional amount needed to pay costs related to issuance
of bonds under subdivision 3, including interest. Any funds remaining after completion of
the projects and retirement or redemption of the bonds shall be placed in a capital facilities
and equipment replacement 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of North Mankato and its chief clerical officer comply with Minnesota Statures, section
645.021, subdivisions 2 and 3.
new text end