HF 3510

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxes; local sales and use; authorizing 
  1.3             the city of Albert Lea to impose a local sales and use 
  1.4             tax. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF ALBERT LEA; SALES AND USE TAX.] 
  1.7      Subdivision 1.  [SALES AND USE TAX 
  1.8   AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  1.9   477A.016, or any other provision of law, ordinance, or city 
  1.10  charter, the city of Albert Lea may, by ordinance, impose a 
  1.11  sales and use tax of one-half of one percent for the purposes 
  1.12  specified in subdivision 2.  Except as otherwise specifically 
  1.13  provided, the provisions of Minnesota Statutes, section 297A.99, 
  1.14  govern the imposition, administration, collection, and 
  1.15  enforcement of the tax authorized under this subdivision. 
  1.16     Subd. 2.  [USE OF REVENUES.] The proceed of the tax imposed 
  1.17  under this section must be used to pay the costs of the 
  1.18  following projects: 
  1.19     (1) lake improvement projects, which are specified at least 
  1.20  90 days before the occurrence of the referendum as required by 
  1.21  Minnesota Statutes, section 297A.99, subdivision 3; and 
  1.22     (2) downtown improvement projects, which are specified at 
  1.23  least 90 days before the occurrence of the referendum as 
  1.24  required by Minnesota Statutes, section 297A.99, subdivision 3. 
  1.25     Subd. 3.  [REFERENDUM.] If the Albert Lea city council 
  2.1   proposes to impose the tax authorized by this section, the 
  2.2   question of imposing the tax must be submitted to the voters at 
  2.3   the next general election.  The tax must not be imposed unless 
  2.4   the majority of votes cast on the question of imposing the tax 
  2.5   are in the affirmative.  The commissioner of revenue shall 
  2.6   prepare a suggested form of the question to be presented at the 
  2.7   election.  The question must state that the sales and use tax 
  2.8   revenues would be pledged to pay any bonds issued under 
  2.9   subdivision 4 and that these bonds are guaranteed by the city's 
  2.10  property taxes. 
  2.11     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.12  under Minnesota Statutes, chapter 475, to finance the capital 
  2.13  expenditure and improvement projects authorized under 
  2.14  subdivision 2.  The total amount of bonds issued for the 
  2.15  projects listed in subdivision 2 may not exceed $14,500,000 in 
  2.16  aggregate.  An election to approve the bonds, as required under 
  2.17  Minnesota Statutes, section 475.58, is not required. 
  2.18     (b) The issuance of the bonds under this subdivision is not 
  2.19  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.20     (c) The bonds are not included in computing any debt 
  2.21  limitation applicable to the city, and the levy of taxes under 
  2.22  Minnesota Statutes, section 475.61, to pay the principal of and 
  2.23  interest on the bonds is not subject to any levy limitation. 
  2.24     (d) The tax authorized under this section may be pledged to 
  2.25  and used for the payment of the bonds and any bonds issued to 
  2.26  refund them only if the bonds and any refunding bonds are 
  2.27  general obligations of the city. 
  2.28     Subd. 5.  [TERMINATION OF TAXES.] The tax imposed under 
  2.29  this section expires at the earlier of (1) ten years after the 
  2.30  tax is first imposed, or (2) when the city council first 
  2.31  determines that the amount of revenues raised to pay for the 
  2.32  projects under subdivision 2, shall meet or exceed the sum of 
  2.33  $14,500,000, plus an amount equal to the costs related to the 
  2.34  issuance of bonds under subdivision 4.  Any funds remaining 
  2.35  after completion of the projects and retirement or redemption of 
  2.36  the bonds may be placed in the general funds of the city. 
  3.1      Sec. 2.  [EFFECTIVE DATE.] 
  3.2      This section is effective the day after compliance by the 
  3.3   governing body of the city of Albert Lea with Minnesota 
  3.4   Statutes, section 645.021, subdivision 3.