HF 2934

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; authorizing the city of 
  1.3             Crosslake to impose a local sales and use tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF CROSSLAKE; TAXES AUTHORIZED.] 
  1.6      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.7   Minnesota Statutes, section 297A.48, subdivision 1a, 477A.016, 
  1.8   or any other provision of law, ordinance, or city charter, if 
  1.9   approved by the city voters under Minnesota Statutes, section 
  1.10  297A.48, subdivision 1a, paragraph (a), the city of Crosslake 
  1.11  may impose by ordinance a sales and use tax of up to one-fourth 
  1.12  of one percent for the purpose specified in subdivision 3.  The 
  1.13  provisions of Minnesota Statutes, section 297A.48, govern the 
  1.14  imposition, administration, collection, and enforcement of the 
  1.15  tax authorized under this subdivision. 
  1.16     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.17  Minnesota Statutes, section 477A.016, or any other provision of 
  1.18  law, ordinance, or city charter, the city of Crosslake may 
  1.19  impose by ordinance, for the purpose specified in subdivision 3, 
  1.20  an excise tax of up to $20 per motor vehicle, as defined by 
  1.21  ordinance, purchased or acquired from any person engaged within 
  1.22  the city in the business of selling motor vehicles at retail. 
  1.23     Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  1.24  authorized by subdivisions 1 and 2 must be used by the city to 
  2.1   pay the cost of collecting the taxes and to pay for construction 
  2.2   and improvement of a wastewater treatment facility. 
  2.3      Authorized expenses include, but are not limited to, 
  2.4   acquiring property, paying construction and operating expenses 
  2.5   related to the development of the facility, and paying debt 
  2.6   service on bonds or other obligations, including lease 
  2.7   obligations, issued to finance the construction, expansion, or 
  2.8   improvement of the facility. 
  2.9      Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.10  under Minnesota Statutes, chapter 475, to finance the capital 
  2.11  expenditure and improvement project described in subdivision 3.  
  2.12  An election to approve the bonds under Minnesota Statutes, 
  2.13  section 475.58, is not required. 
  2.14     (b) The issuance of bonds under this subdivision is not 
  2.15  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.16     (c) The bonds are not included in computing any debt 
  2.17  limitation applicable to the city, and the levy of taxes under 
  2.18  Minnesota Statutes, section 475.61, to pay principal of and 
  2.19  interest on the bonds is not subject to any levy limitation.  
  2.20     (d) The sales and use and excise taxes authorized in this 
  2.21  section may be pledged to and used for the payment of the bonds 
  2.22  and any bonds issued to refund them only if the bonds and any 
  2.23  refunding bonds are general obligations of the city. 
  2.24     Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  2.25  subdivisions 1 and 2 expire when the city council determines 
  2.26  that the sufficient funds have been received from the taxes to 
  2.27  finance the capital and administrative costs for the 
  2.28  acquisition, construction, expansion, and improvement of the 
  2.29  facility described in subdivision 3, plus the additional amount 
  2.30  needed to pay the costs related to issuance of bonds under 
  2.31  subdivision 4, including interest on the bonds.  Any funds 
  2.32  remaining after completion of the project and retirement or 
  2.33  redemption of the bonds may be placed in the general fund of the 
  2.34  city.  The taxes imposed under subdivisions 1 and 2 may expire 
  2.35  at an earlier time if the city so determines by ordinance. 
  2.36     Subd. 6.  [EFFECTIVE DATE.] This section is effective the 
  3.1   day after compliance by the governing body of the city of 
  3.2   Crosslake with Minnesota Statutes, section 645.021, subdivision 
  3.3   3.