HF 3107

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/03/2022 03:30pm

A bill for an act
relating to taxation; modifying the authorization for the city of Grand Rapids to
impose a local sales and use tax for the reconstruction, remodeling, and upgrading
of a civic center; amending Laws 2021, First Special Session chapter 14, article
8, section 7.

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

Section 1.

Laws 2021, First Special Session chapter 14, article 8, section 7, is amended
to read:

Sec. 7. CITY OF GRAND RAPIDS; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, 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 Grand Rapids may impose by ordinance a sales
and use tax of 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.

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Grand Rapids to pay the costs of collecting
and administering the tax including securing and paying debt service on bonds issued and
to finance up to deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end for reconstruction, remodeling, and upgrades to
the Grand Rapids IRA Civic Center. Authorized costs include design, construction,
reconstruction, mechanical upgrades, and engineering costs, as well as the associated bond
costs for any bonds issued under subdivision 3.

Subd. 3.

Bonding authority.

(a) The city of Grand Rapids may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end , 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 Grand Rapids, 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.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Grand Rapids, 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.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) deleted text begin seven deleted text end new text begin 12 new text end years after the tax is first imposed; or (2) when the city council
determines that it has received from this tax deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end to fund the project
listed in subdivision 2 for projects approved by the 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. Any funds remaining after payment of all such costs and retirement or
redemption of the bonds shall be placed in the general fund of the city, except for funds
required to be retained in the state general fund under Minnesota Statutes, section 297A.99,
subdivision 3. The tax imposed under subdivision 1 may expire at an earlier time if the city
so determines by ordinance.

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 Grand Rapids and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end