HF 1301

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 11:00am

A bill for an act
relating to local taxes; authorizing the city of Marshall to extend its local sales and
use tax; amending Laws 2011, First Special Session chapter 7, article 4, section
14.

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

Section 1.

Laws 2011, First Special Session chapter 7, article 4, section 14, is amended
to read:

Sec. 14. CITY OF MARSHALL; SALES AND USE TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section 297A.99,
subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, the city of
Marshall, if approved by the voters at a general election held within two years of the date
of final enactment of this section, may impose the tax authorized under subdivision 2. Two
separate ballot questions must be presented to the voters, one for each of the two facility
projects named in subdivision 3.

Subd. 2.

Sales and use tax authorized.

The city of Marshall may impose by ordinance
a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
3. 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 begin Subd. 2a. new text end

new text begin Authorization; extension. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, or city
charter, after payment of the bonds authorized under subdivision 4, and if approved by the
voters at an election held on November 7, 2023, the city of Marshall may extend the sales
and use tax of one-half of one percent authorized under subdivision 2 for the purposes
specified in subdivision 3a.
new text end

new text begin (b) In addition to the election requirements in Minnesota Statutes, section 297A.99,
subdivision 3, the ballot question must include an estimate of the interest costs for bonding
authorized under subdivision 4a.
new text end

new text begin (c) 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

Subd. 3.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 2 must be used by the city of Marshall to pay the costs of collecting and
administering the sales and use tax and to pay all or part of the costs of the new and existing
facilities of the Minnesota Emergency Response and Industry Training Center and all or
part of the costs of the new facilities of the Southwest Minnesota Regional Amateur Sports
Center. Authorized expenses include, but are not limited to, acquiring property, predesign,
design, and paying construction, furnishing, and equipment costs related to these facilities
and paying debt service on bonds or other obligations issued by the city of Marshall under
subdivision 4 to finance the capital costs of these facilities.

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; aquatic center. new text end

new text begin The revenues derived
from the extension of the tax authorized under subdivision 2a must be used by the city of
Marshall to pay the costs of collecting and administering the tax and paying for $18,370,000
plus associated bonding costs for the construction of a new municipal aquatic center in the
city, including securing and paying debt service on bonds issued to finance the project.
new text end

Subd. 4.

Bonds.

(a) If the imposition of a sales and use tax is approved by the voters,
the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
to refund bonds previously issued. The aggregate principal amount of bonds issued under
this subdivision may not exceed $17,290,000, 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 Marshall, including the tax authorized under subdivision 2.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Marshall, 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 begin Subd. 4a. new text end

new text begin Bonds; additional use and extension of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 4, the city of Marshall may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may
not exceed $18,370,000, 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
Marshall, including the tax authorized under subdivision 2a. 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 Marshall, 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

Subd. 5.

Termination of taxes.

new text begin (a) new text end The tax imposed under subdivision 2 expires at the
earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines
that the amount of revenues received from the tax to pay for the capital and administrative
costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to
be spent for the facilities plus the additional amount needed to pay the costs related to
issuance of the bonds under subdivision 4, 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 2 may expire
at an earlier time if the city so determines by ordinance.

new text begin (b) The tax imposed under subdivision 2a expires at the earlier of (1) 35 years after the
tax under subdivision 2 is first imposed, or (2) when the city council determines that the
amount of revenues received from the tax is sufficient to pay for the project costs authorized
under subdivision 3a, plus an amount sufficient to pay the costs related to issuance of the
bonds under subdivision 4a, 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, shall be placed in the general fund of
the city. The tax imposed under subdivision 2a 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 Marshall with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end