HF 1806

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; sales and use tax; allowing the 
  1.3             cities of St. Cloud, Sartell, Sauk Rapids, Waite Park, 
  1.4             St. Joseph, and St. Augusta to impose local sales and 
  1.5             use taxes to fund certain projects. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [ST. CLOUD AREA CITIES; TAXES AUTHORIZED.] 
  1.8      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.9   Minnesota Statutes, section 477A.016, or any other provision of 
  1.10  law, ordinance, or city charter, the following cities may, by 
  1.11  ordinance, impose a sales and use tax of one-half of one percent 
  1.12  for the purposes specified in subdivision 2: 
  1.13     (1) the city of St. Cloud, pursuant to the approval of the 
  1.14  city voters at the general election held on November 7, 2000; 
  1.15     (2) the city of Sartell, pursuant to the approval of the 
  1.16  city voters at an election held in November 1999; and 
  1.17     (3) each of the cities of Sauk Rapids, Waite Park, St. 
  1.18  Joseph, and St. Augusta, pursuant to the approval of the voters 
  1.19  of that city at the next general election following the date of 
  1.20  final enactment of this act, as provided for in subdivision 3. 
  1.21     The provisions of Minnesota Statutes, section 297A.99, 
  1.22  shall govern the imposition, administration, collection, and 
  1.23  enforcement of the taxes authorized under this subdivision, 
  1.24  except that the revenues from the tax imposed in the city of 
  1.25  Sartell must be used for the purposes listed in subdivision 2, 
  2.1   notwithstanding other purposes listed in the authorizing 
  2.2   referendum, and are not subject to the requirements of Minnesota 
  2.3   Statutes, section 297A.99, subdivision 3. 
  2.4      Subd. 2.  [USE OF REVENUES.] (a) Revenues received from the 
  2.5   taxes authorized under subdivision 1, with the exception of 
  2.6   revenues collected from a tax imposed in the city of Waite Park, 
  2.7   shall be used for the cost of collecting and administering the 
  2.8   taxes and to pay all or part of the capital or administrative 
  2.9   costs of the acquisition, construction, and improvement of (1) 
  2.10  the main runway improvements to the St. Cloud Regional Airport; 
  2.11  and (2) remodeling, expansion, or construction of the St. 
  2.12  Cloud/Great River Regional Library and related on-site and 
  2.13  off-site improvements as provided for in the city of St. Cloud 
  2.14  capital improvement program 2000 to 2005, adopted by the St. 
  2.15  Cloud planning commission on July 14, 1999.  Revenues from a tax 
  2.16  imposed by the city of Waite Park shall be used to pay the cost 
  2.17  of collecting and administering the tax and to fund the St. 
  2.18  Cloud Regional Airport and the Waite Park branch of the St. 
  2.19  Cloud/Great River Regional Library but not the main facility of 
  2.20  the St. Cloud/Great River Regional Library.  Authorized expenses 
  2.21  include, but are not limited to, acquiring property, paying 
  2.22  construction expenses related to the development of these 
  2.23  facilities, and securing and paying debt service on bonds or 
  2.24  other obligations issued to finance construction or improvement 
  2.25  of the authorized facility. 
  2.26     (b) If revenues collected from the taxes imposed under 
  2.27  subdivision 1 are greater than the amount needed to meet 
  2.28  obligations under paragraph (a) in any year, the surplus may be 
  2.29  returned to the cities in a manner agreed upon by the 
  2.30  participating cities under this section, to be used by the 
  2.31  cities for projects of regional significance, limited to:  the 
  2.32  acquisition and improvement of park land and open space; the 
  2.33  purchase, renovation, and construction of public buildings and 
  2.34  land primarily used for the arts, libraries, and community 
  2.35  centers; major roadway improvements; and for debt service on 
  2.36  bonds issued for these purposes.  Authorized expenses include, 
  3.1   but are not limited to, acquiring property, paying construction 
  3.2   expenses related to the development of these facilities, and 
  3.3   securing and paying debt service on bonds or other obligations 
  3.4   issued to finance construction or improvement of the authorized 
  3.5   facility.  The distribution of surplus revenues raised by the 
  3.6   tax shall be determined by an applicable joint powers agreement. 
  3.7   The revenues returned to each city may only be used to fund 
  3.8   projects that have been approved by voters at the referendum 
  3.9   authorizing the tax. 
  3.10     (c) Pursuant to the approval of the St. Cloud voters at the 
  3.11  general election held on November 7, 2000, the surplus returned 
  3.12  to St. Cloud under paragraph (b) shall be used for the following 
  3.13  projects: 
  3.14     (1) intersection improvements to the 25th Avenue and trunk 
  3.15  highway No. 23, I-94 interchange at county road 75, 10th Street 
  3.16  South improvements, the West Metro corridor improvements, and 
  3.17  other regionally significant road projects; and 
  3.18     (2) park and nature land purchase, trail development, and 
  3.19  improvements and expansions of existing regional park 
  3.20  facilities, as provided for in the city of St. Cloud capital 
  3.21  improvement program 2000 to 2005, adopted by the St. Cloud 
  3.22  planning commission on July 14, 1999. 
  3.23     (d) Pursuant to approval of the Sartell voters at the 
  3.24  election held in November 1999, the surplus returned to the city 
  3.25  of Sartell under paragraph (b) shall be used to fund 
  3.26  construction, expansion, and improvements to a community center 
  3.27  and for park land acquisition and improvement. 
  3.28     Subd. 3.  [SEPARATE REFERENDA REQUIRED.] Notwithstanding 
  3.29  Minnesota Statutes, section 297A.99, subdivision 3, each city 
  3.30  listed in subdivision 1, clause (3), must have a separate vote 
  3.31  on each project that it proposes to fund with the surplus tax 
  3.32  revenues it receives under subdivision 2, paragraph (b).  For 
  3.33  these cities, the cost of each project to be funded by the taxes 
  3.34  authorized in subdivision 1 must be listed.  The referendum must 
  3.35  state that approval of using the tax authorized in subdivision 1 
  3.36  for any project shall also indicate approval to share the 
  4.1   revenues collected from the tax with the other cities in the 
  4.2   area which have also passed a sales tax.  The sharing shall be 
  4.3   done in a manner agreed upon by all affected cities under a 
  4.4   joint powers agreement. 
  4.5      Subd. 4.  [BONDING AUTHORITY.] The cities named in 
  4.6   subdivision 1 may issue bonds under Minnesota Statutes, chapter 
  4.7   475, to finance the acquisition, construction, and improvements 
  4.8   of the projects authorized under subdivision 2.  The election to 
  4.9   approve the bonds, as required under Minnesota Statutes, section 
  4.10  475.58, may be held in combination with the election to 
  4.11  authorize imposition of the tax under subdivision 1.  Whether to 
  4.12  permit imposition of the tax and issuance of the bonds may be 
  4.13  posed to the voters as a single question.  The question must 
  4.14  state that the sales tax revenues would be pledged to pay the 
  4.15  bonds and that the bonds are guaranteed by the city's property 
  4.16  taxes. 
  4.17     (b) The issuance of bonds under this subdivision is not 
  4.18  subject to Minnesota Statutes, section 275.60. 
  4.19     (c) The bonds shall not be included in computing any debt 
  4.20  limitation applicable to the city, and the levy of taxes under 
  4.21  Minnesota Statutes, section 475.61, to pay the principal of and 
  4.22  interest on the bonds is not subject to any levy limitation. 
  4.23     (d) The principal amount of bonds issued by the city of St. 
  4.24  Cloud for the projects authorized in subdivision 2, paragraph 
  4.25  (a), plus the tax used directly to pay eligible capital 
  4.26  expenditures and improvements for those projects may not exceed 
  4.27  $2,700,000 for the airport improvements and $20,000,000 for the 
  4.28  library improvements, plus an amount equal to the cost related 
  4.29  to the issuance of the bonds.  The principal amount of bonds 
  4.30  issued by the city of St. Cloud for the projects listed in 
  4.31  subdivision 2, paragraph (c), plus the taxes used directly to 
  4.32  pay eligible capital expenditures and improvements for those 
  4.33  projects may not exceed $5,300,000 for the road improvements and 
  4.34  $12,000,000 for the park improvements, plus an amount equal to 
  4.35  the cost related to the issuance of the bonds. 
  4.36     (e) The principal amount of bonds issued by the other 
  5.1   cities named in subdivision 1 for the projects authorized in 
  5.2   subdivision 2, paragraph (b), plus the tax used directly to pay 
  5.3   eligible capital expenditures and improvements for those 
  5.4   projects may not exceed the amount approved by the voters at the 
  5.5   election required in subdivision 1, plus an amount equal to the 
  5.6   cost related to the issuance of the bonds. 
  5.7      (f) The taxes may be pledged to and used for the payment of 
  5.8   the bonds and any bonds issued to refund them only if the full 
  5.9   faith and credit of the city backs the bonds and any refunding 
  5.10  bonds. 
  5.11     Subd. 5.  [TERMINATION OF TAX.] The tax imposed by each 
  5.12  city under subdivision 1 shall expire at the earlier of: 
  5.13     (1) ten years after the date that the tax is first imposed 
  5.14  in any of the cities listed in subdivision 1; or 
  5.15     (2) the date that the amount of revenues received by the 
  5.16  city of St. Cloud to pay for the projects under subdivision 2, 
  5.17  paragraphs (a) and (c), shall meet or exceed the sum of 
  5.18  $40,000,000 plus an amount equal to the costs related to the 
  5.19  issuance of bonds under subdivision 4, paragraphs (b) and (c). 
  5.20  Any funds remaining after completion of the projects and 
  5.21  retirement or redemption of the bonds may be placed in the 
  5.22  general funds of the cities imposing the taxes.  If the cities 
  5.23  that pass a referendum required under subdivision 1 determine 
  5.24  that the revenues raised from the authorized taxes will not be 
  5.25  sufficient to fund the projects in subdivision 2, other local 
  5.26  revenues shall be committed. 
  5.27     [EFFECTIVE DATE.] This section is effective August 1, 2001, 
  5.28  with respect to any city listed in subdivision 1, upon 
  5.29  compliance of the governing body of that city with Minnesota 
  5.30  Statutes, section 645.021, subdivision 3.