HF 2358

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; changing referendum options for 
  1.3             certain cities with respect to funding the Central 
  1.4             Minnesota Events Center and other projects; making 
  1.5             technical corrections; exempting certain purchases 
  1.6             from sales and use tax; amending Minnesota Statutes 
  1.7             1998, section 297A.25, by adding a subdivision; Laws 
  1.8             1998, chapter 389, article 8, section 44, subdivisions 
  1.9             1 and 5. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 297A.25, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 79.  [CONSTRUCTION MATERIALS; CENTRAL MINNESOTA 
  1.14  EVENTS CENTER.] Purchases of materials and supplies used or 
  1.15  consumed in and equipment incorporated into the construction, 
  1.16  improvement, or expansion of the Central Minnesota events center 
  1.17  are exempt from the tax imposed under this section, regardless 
  1.18  of whether purchased by the owner, or a contractor, 
  1.19  subcontractor, or builder.  The tax shall be calculated and paid 
  1.20  as if the rate in section 297A.02, subdivision 1, was in effect 
  1.21  and a refund applied for in the manner prescribed in section 
  1.22  297A.15, subdivision 7. 
  1.23     Sec. 2.  Laws 1998, chapter 389, article 8, section 44, 
  1.24  subdivision 1, is amended to read: 
  1.25     Subdivision 1.  [SALES AND USE TAX AUTHORIZED.] 
  1.26  Notwithstanding Minnesota Statutes, section 477A.016, or any 
  1.27  other provision of law, ordinance, or city charter, the cities 
  2.1   of St. Cloud, Sauk Rapids, Sartell, Waite Park, and St. Joseph 
  2.2   may impose by ordinance a sales and use tax of up to one-half of 
  2.3   one percent for the purposes specified in subdivision 3 5.  This 
  2.4   tax, and the taxes described in subdivisions 2 to 4, may be 
  2.5   imposed in any of these cities only if approved by the voters of 
  2.6   the city at a general election held within one year of the date 
  2.7   of final enactment of this act, or at an election held on the 
  2.8   first Tuesday in November of 1999.  The provisions of Minnesota 
  2.9   Statutes, section 297A.48, govern the imposition, 
  2.10  administration, collection, and enforcement of the taxes 
  2.11  authorized under this subdivision. 
  2.12     Sec. 3.  Laws 1998, chapter 389, article 8, section 44, 
  2.13  subdivision 5, is amended to read: 
  2.14     Subd. 5.  [USE OF REVENUES.] (a) Revenues received from the 
  2.15  taxes authorized by subdivisions 1 to 4 must be used to pay for 
  2.16  the cost of collecting the taxes; to pay all or part of the 
  2.17  capital or administrative cost of the acquisition, construction, 
  2.18  and improvement of the Central Minnesota Events Center and 
  2.19  related on-site and off-site improvements; and to pay for the 
  2.20  operating deficit, if any, in the first five years of operation 
  2.21  of the facility.  Authorized expenses related to acquisition, 
  2.22  construction, and improvement of the center include, but are not 
  2.23  limited to, acquiring property, paying construction and 
  2.24  operating expenses related to the development of the facility, 
  2.25  and securing and paying debt service on bonds or other 
  2.26  obligations issued to finance construction or improvement of the 
  2.27  authorized facility. 
  2.28     (b) In addition, if the revenues collected from a tax 
  2.29  imposed in subdivisions 1 to 4 are greater than the amount 
  2.30  needed to meet obligations under paragraph (a) in any year, the 
  2.31  surplus may be returned to the cities in a manner agreed upon by 
  2.32  the participating cities under this section, to be used by the 
  2.33  cities for projects of regional significance, limited to the 
  2.34  acquisition and improvement of park land and open space; the 
  2.35  purchase, renovation, and construction of public buildings and 
  2.36  land primarily used for the arts, libraries, and community 
  3.1   centers; and for debt service on bonds issued for these 
  3.2   purposes.  The amount of surplus revenues raised by a tax will 
  3.3   be determined either as provided for by an applicable joint 
  3.4   powers agreement or by a governing entity in charge of 
  3.5   administering the project in paragraph (a).  
  3.6      (c) The increase in the tax described in subdivision 1 that 
  3.7   may be proposed in the election referred to in subdivision 1 
  3.8   may, if approved, be used for any one of the options listed in 
  3.9   clauses (1) to (4): 
  3.10     (1) the Central Minnesota Events Center; 
  3.11     (2) the acquisition and improvement of park land and open 
  3.12  space of regional significance; 
  3.13     (3) the purchase, renovation, and construction of public 
  3.14  buildings of regional significance and associated land primarily 
  3.15  used for the arts and libraries; or 
  3.16     (4) community centers of regional significance. 
  3.17     (d) A city may choose to submit no projects to the voters 
  3.18  for approval or to submit any two, three, or all four of the 
  3.19  kinds of projects mentioned in paragraph (c), clauses (1) to 
  3.20  (4), in one ballot question.  But a city is encouraged to pose a 
  3.21  separate ballot question for each kind of project, if any, under 
  3.22  paragraph (c), clauses (1) to (4), that the city proposes to the 
  3.23  voters; conversely, a city is encouraged not to pose a single 
  3.24  ballot question that, if approved, would authorize projects from 
  3.25  more than one of the options listed in paragraph (c), clauses 
  3.26  (1) to (4). 
  3.27     Sec. 4.  [EFFECTIVE DATE.] 
  3.28     Section 1 is effective for purchases made after August 1, 
  3.29  1998, and before June 30, 2002.