HF 1246

as introduced - 87th Legislature (2011 - 2012) Posted on 03/21/2011 10:02am

A bill for an act
relating to taxation; authorizing the city of Moose Lake 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 MOOSE LAKE; SALES AND USE TAX.
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, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
or city charter, as approved by the voters at the next general election, the city of Moose
Lake may impose, by ordinance, a sales and use tax up to one-half of one percent for
the purposes specified in subdivision 2. The provisions of Minnesota Statutes, section
297A.99, except subdivisions 1 and 2, 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 Moose Lake to pay the costs
of collecting and administering the tax and to finance the costs of: (1) improvements
to the city's park system of benefit to regional residents and of benefit to regional
tourism, including the Earl Ellen's Park-Riverside Arena project, and the Historic Trail
Depot Project; (2) street and related infrastructure improvements; and (3) municipal
library improvements. Authorized costs include construction and engineering costs and
associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonds. new text end

new text begin (a) If the imposition of a sales and use tax is approved by the
voters, the city of Moose Lake may issue bonds under Minnesota Statutes, chapter 475, to
finance all or a portion of the costs of the facilities authorized in subdivision 2, and may
issue bonds to refund bonds previously issued. The aggregate principal amount of bonds
issued under this subdivision may not exceed $3,000,000, 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 of Moose Lake, 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 of Moose Lake, 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 The tax imposed under subdivision 1 expires at
the earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
determines that $3,000,000 has been received from the tax to pay for the capital and
administrative costs of the facilities under subdivision 2, plus an amount sufficient to pay
the costs related to issuance of the bonds under subdivision 3, including interest on the
bonds. 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 compliance by the
governing body of the city of Moose Lake with Minnesota Statutes, section 645.021,
subdivision 3.
new text end