HF 2595

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/06/2023 11:41am

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

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

Section 1. new text begin CITY OF BLACKDUCK; 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 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 Blackduck may impose, by ordinance, a sales and use tax of up to one-half of
one percent for the purposes 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 Blackduck to pay the costs of collecting
and administering the tax, including associated bond costs on bonds issued under subdivision
3, and securing and paying debt service on the bonds, and to finance all or part of the
following projects:
new text end

new text begin (1) $200,000 for electricity and utility improvements at the city campground;
new text end

new text begin (2) $250,000 for construction of a playground and ADA-compliant restroom at the city
wayside rest;
new text end

new text begin (3) $300,000 for trail extensions and improvements adjacent to Wayside Rest Park;
new text end

new text begin (4) $150,000 for irrigation improvements at the city golf course; and
new text end

new text begin (5) $100,000 for rehabilitation of the Blackduck Community Library.
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 Blackduck may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 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) $200,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $250,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (3) $300,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (4) $150,000 for the project listed in subdivision 2, clause (4), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (5) $100,000 for the project listed in subdivision 2, clause (5), 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 county, 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 (c) The bonds are not included in computing any debt limitation applicable to the county.
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. 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 The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that
the amount it has received from this tax is sufficient to pay for the project costs authorized
under subdivision 2 for projects approved by 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 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 timing of
the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall
be placed in the county's general fund. The tax imposed under subdivision 1 may expire at
an earlier time if the county 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 Blackduck and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end