HF 2383

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; authorizing the city of Isle to impose a local sales tax.

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

Section 1. new text begin CITY OF ISLE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the
voters at the next general election or a special election held within two years of the date
of final enactment, the city of Isle may impose by ordinance a sales and use tax of up to
one-half of one percent for the purpose specified in subdivision 2. Except as 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.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from taxes authorized by subdivision
1 must be used by the city to pay the cost of collecting the taxes and to pay all or part of
the costs for the construction, reconstruction, and improvements of a sewer and water
upgrade; city parks, trails, and playgrounds, including playground equipment; and
replacement firefighting equipment. Authorized expenses include, but are not limited to,
paying construction expenses related to these facilities and improvements, and paying
debt service on bonds or other obligations issued to finance acquisition, development, and
construction of these facilities and improvements. The total amount of revenues that
the city may raise under subdivision 1 to finance these projects is limited to $2,000,000
plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin Pursuant to the approval of the city voters to impose
the tax authorized under subdivision 1, the city may issue, without an additional election,
general obligation bonds of the city in an amount not to exceed $2,000,000 to pay
capital and administrative expenses for the projects described in subdivision 2. The debt
represented by the bonds is not included in computing any debt limitation applicable to the
city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
and interest on the bonds is not subject to any levy limitation or included in computing or
applying any levy limitation applicable to the city.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivision 1 expire when
the Isle City Council determines that the amount of revenues received from the taxes
to finance the projects described in subdivision 2 first equals or exceeds $2,000,000,
plus the additional amount needed to pay the costs related to issuance of bonds under
subdivision 3, including interest on the bonds. Any funds remaining after completion of
the projects and retirement or redemption of the bonds may be placed in the general fund
of the city. The taxes imposed under subdivision 1 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 Isle and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3. new text end