HF 2435

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:12pm

A bill for an act
relating to local taxes; authorizing the city of Woodbury to impose an additional
sales and use tax.

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

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

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (d), or 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 Woodbury may impose by ordinance
a sales and use tax of one-half of one percent for the purpose specified in subdivision 2.
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 Subd. 2. new text end

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

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Woodbury to pay the costs of collecting
and administering the tax and to finance up to $50,000,000, plus associated bonding costs,
for the construction of a new public safety campus.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Woodbury may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $50,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Woodbury, including the tax authorized under subdivision 1. 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 (b) The bonds are not included in computing any debt limitation applicable to the city
of Woodbury, 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 Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay $50,000,000 in project costs authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, 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, must be placed in the general fund of
the city. The tax 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 Woodbury and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end