HF 1844

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the city of New Ulm 
  1.3             to impose certain sales and use taxes; requiring voter 
  1.4             approval; providing bonding authority. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF NEW ULM; TAXES AUTHORIZED.] 
  1.7      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.8   Minnesota Statutes, section 477A.016, or any other provision of 
  1.9   law, ordinance, or city charter, if approved by the city voters 
  1.10  at a general election or special election held within one year 
  1.11  of final enactment of this act, the city of New Ulm may impose 
  1.12  by ordinance a sales and use tax of up to one-half of one 
  1.13  percent for the purposes specified in subdivision 3.  The 
  1.14  provisions of Minnesota Statutes, section 297A.48, govern the 
  1.15  imposition, administration, collection, and enforcement of the 
  1.16  tax authorized under this subdivision. 
  1.17     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.18  Minnesota Statutes, section 477A.016, or any other provision of 
  1.19  law, ordinance, or city charter, the city of New Ulm may impose 
  1.20  by ordinance, for the purposes specified in subdivision 3, an 
  1.21  excise tax of up to $20 per motor vehicle, as defined by 
  1.22  ordinance, purchased or acquired from any person engaged within 
  1.23  the city in the business of selling motor vehicles at retail. 
  1.24     Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  1.25  authorized by subdivisions 1 and 2 must be used by the city to 
  2.1   pay the cost of collecting the taxes and to pay for construction 
  2.2   and improvement of a civic and community center and recreational 
  2.3   facilities to serve all ages, including seniors and youth.  
  2.4   Authorized expenses include, but are not limited to, acquiring 
  2.5   property, paying construction and operating expenses related to 
  2.6   the development of an authorized facility, funding facilities 
  2.7   replacement reserves, and paying debt service on bonds or other 
  2.8   obligations issued to finance the construction or expansion of 
  2.9   an authorized facility.  The capital expenses for all projects 
  2.10  authorized under this subdivision that may be paid with these 
  2.11  taxes are limited to $9,000,000, plus an amount equal to the 
  2.12  costs related to issuance of the bonds and funding facilities 
  2.13  replacement reserves. 
  2.14     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.15  under Minnesota Statutes, chapter 475, to finance the capital 
  2.16  expenditure and improvement projects.  An election to approve 
  2.17  the bonds under Minnesota Statutes, section 475.58, may be held 
  2.18  in combination with the election to authorize imposition of the 
  2.19  tax under subdivision 1.  Whether to permit imposition of the 
  2.20  tax and issuance of bonds may be posed to the voters as a single 
  2.21  question.  The question must state that the sales tax revenues 
  2.22  are pledged to pay the bonds, but that the bonds are general 
  2.23  obligations and will be guaranteed by the city's property taxes. 
  2.24     (b) The issuance of bonds under this subdivision is not 
  2.25  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.26     (c) The bonds are not included in computing any debt 
  2.27  limitation applicable to the city, and the levy of taxes under 
  2.28  Minnesota Statutes, section 475.61, to pay principal of and 
  2.29  interest on the bonds is not subject to any levy limitation.  
  2.30  The aggregate principal amount of bonds, plus the aggregate of 
  2.31  the taxes used directly to pay eligible capital expenditures and 
  2.32  improvements may not exceed $9,000,000, plus an amount equal to 
  2.33  the costs related to issuance of the bonds. 
  2.34     (d) The taxes may be pledged to and used for the payment of 
  2.35  the bonds and any bonds issued to refund them, only if the bonds 
  2.36  and any refunding bonds are general obligations of the city. 
  3.1      Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  3.2   subdivisions 1 and 2 expire when the city council determines 
  3.3   that sufficient funds have been received from the taxes to 
  3.4   finance the capital and administrative costs for the 
  3.5   acquisition, construction, and improvement of facilities 
  3.6   described in subdivision 3, and to prepay or retire at maturity 
  3.7   the principal, interest, and premium due on any bonds issued for 
  3.8   the facilities under subdivision 4.  Any funds remaining after 
  3.9   completion of the project and retirement or redemption of the 
  3.10  bonds may be placed in the general fund of the city.  The taxes 
  3.11  imposed under subdivisions 1 and 2 may expire at an earlier time 
  3.12  if the city so determines by ordinance. 
  3.13     Subd. 6.  [EFFECTIVE DATE.] This section is effective the 
  3.14  day after compliance by the governing body of the city of New 
  3.15  Ulm with Minnesota Statutes, section 645.021, subdivision 3.