HF 2246

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 03:06pm

A bill for an act
relating to taxation; extending the Rochester local sales and use tax authorization
for additional projects; amending Laws 1998, chapter 389, article 8, section 43,
subdivision 5, as amended, by adding subdivisions.

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

Section 1.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and if approved by the voters at a
general election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Rochester may extend the sales and use tax of one-half of one percent authorized
under subdivision 1, paragraph (a), for the purposes specified in subdivision 3a. 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

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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 2.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; additional projects. new text end

new text begin (a) The revenues
derived from the extension of the tax authorized under subdivision 1a must be used by the
city of Rochester to pay the costs of collecting and administering the tax and paying for the
following projects in the city, including securing and paying debt service on bonds issued
to finance all or part of the following projects:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a),
(b), and (d):
new text end

new text begin (i) $60,000,000, plus associated bonding costs for an economic vitality fund, subject to
adoption of a resolution under paragraph (c), clause (1); or
new text end

new text begin (ii) $50,000,000, plus associated bonding costs for an economic vitality fund, subject
to the requirements of paragraph (c), clause (2);
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$50,000,000, plus associated bonding costs for street reconstruction;
new text end

new text begin (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$40,000,000, plus associated bonding costs for flood control and water quality; and
new text end

new text begin (4) $65,000,000, plus associated bonding costs for a Regional Community and Recreation
Complex.
new text end

new text begin (b) The city must use $10,000,000 of the money allocated to the purpose in paragraph
(a), clause (1), for a grant to Rochester Area Economic Development Incorporated to establish
the EverRAEDI development fund. Of that amount, $5,000,000 must be used for grants and
loans for economic development projects in communities located in the city of Rochester,
and $5,000,000 must be used for grants and loans for economic development projects in
communities located in the Rochester metropolitan statistical area. Rochester Area Economic
Development Incorporated may charge grant and loan recipients a service fee of up to five
percent of the grant or loan amount to pay for administrative costs associated with the
EverRAEDI development fund. Rochester Area Economic Development Incorporated shall
report on, at minimum, an annual basis on all EverRAEDI fund activities to the governing
board of the city of Rochester.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs
(a), (b), and (d), the city must either:
new text end

new text begin (1) pass a resolution that authorizes $10,000,000 of the revenues from the tax authorized
under subdivision 1a for the use described in paragraph (a), clause (1), item (i), to be used
for an economic development fund for the purposes specified in paragraph (b); or
new text end

new text begin (2) if the city does not pass a resolution under clause (1), the city must allocate
$10,000,000 from the amount authorized in paragraph (a), clause (1), item (ii), for the
purposes specified in paragraph (b).
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 Rochester with Minnesota Statutes, section 645.021.
new text end

Sec. 3.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Bonding authority; additional projects and extension of tax. new text end

new text begin (a) The city
of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
portion of the costs of the projects authorized in subdivision 3a and approved by the voters
as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
aggregate principal amount of bonds issued under this subdivision may not exceed:
new text end

new text begin (1) if the city passes a resolution under subdivision 3a, paragraph (c), clause (1),
$215,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
(i), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
bonds; or
new text end

new text begin (2) if the city does not pass a resolution under subdivision 3a, paragraph (c), clause (1),
$205,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
(ii), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Rochester, including the tax authorized under subdivision 1a and the full faith and credit
of the city. 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 (c) The bonds are not included in computing any debt limitation applicable to the city
of Rochester, 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 EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire
at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
funds have been received from the taxes to finance the first $71,500,000 of capital
expenditures and bonds for the projects authorized in subdivision 3, including the amount
to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
(b). Any funds remaining after completion of the project and retirement or redemption of
the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
ordinance.

(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
by the voters of the city at a special election in 2005 or the general election in 2006. The
question put to the voters must indicate that an affirmative vote would allow up to an
additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
be issued above the amount authorized in the June 23, 1998, referendum for the projects
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
this paragraph, the taxes expire when the city council determines that sufficient funds have
been received from the taxes to finance the projects and to prepay or retire at maturity the
principal, interest, and premium due on any bonds issued for the projects under subdivision
4. Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city.

(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
2049, provided that all additional revenues above those necessary to fund the projects and
associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
fund public infrastructure projects contained in the development plan adopted under
Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
terminate when the city council determines that sufficient funds have been received from
the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on any
bonds issued for the projects under subdivision 4.

(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of new text begin December
31, new text end 2049, or when the city council determines that sufficient funds have been raised from
the tax plus all other city funding sources authorized in this article to meet the city obligation
for financing the public infrastructure projects contained in the development plan adopted
under Minnesota Statutes, section 469.43, including all financing costs.

new text begin (e) The tax imposed under subdivision 1a expires at the earlier of (1) 18 years after 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 for projects
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), 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 1a 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 the governing body of the
city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end