HF 3627

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 Medford 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 MEDFORD; SALES AND USE TAX.] 
  1.7      Subdivision 1.  [SALES AND USE TAX AUTHORIZED.] 
  1.8   Notwithstanding Minnesota Statutes, section 477A.016, or any 
  1.9   other provision of law, ordinance, or city charter, the city of 
  1.10  Medford may, by ordinance, impose a sales and use tax of 
  1.11  one-half of one percent for the purposes specified in 
  1.12  subdivision 2.  Except as otherwise specifically provided, the 
  1.13  provisions of Minnesota Statutes, section 297A.99, govern the 
  1.14  imposition, administration, collection, and enforcement of the 
  1.15  tax authorized under this subdivision. 
  1.16     Subd. 2.  [USE OF REVENUES.] Revenues received from the tax 
  1.17  authorized by subdivision 1 must be used to pay for the cost of 
  1.18  collecting and administering the tax and to pay all or part of 
  1.19  the capital and administrative costs of the construction and 
  1.20  improvement of wastewater treatment facilities.  Authorized 
  1.21  expenses include, but are not limited to, acquiring the 
  1.22  property, paying construction and operating expenses related to 
  1.23  the development of the facilities, and securing and paying debt 
  1.24  service on bonds or other obligations issued to finance 
  1.25  construction and improvement of the authorized facilities.  
  2.1      Subd. 3.  [REFERENDUM.] If the Medford city council 
  2.2   proposes to impose the tax authorized by this section, the 
  2.3   question of imposing the tax must be submitted to the voters at 
  2.4   the next general election.  The tax must not be imposed unless 
  2.5   the majority of votes cast on the question of imposing the tax 
  2.6   are in the affirmative.  The commissioner of revenue shall 
  2.7   prepare a suggested form of the question to be presented at the 
  2.8   election.  The question must state that the sales and use tax 
  2.9   revenues would be pledged to pay any bonds issued under 
  2.10  subdivision 4 and that these bonds are guaranteed by the city's 
  2.11  property taxes. 
  2.12     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.13  under Minnesota Statutes, chapter 475, to finance the capital 
  2.14  expenditure and improvement projects authorized under 
  2.15  subdivision 2.  The total amount of bonds issued for the 
  2.16  projects listed in subdivision 2 may not exceed $5,500,000 in 
  2.17  aggregate.  An election to approve the bonds, as required under 
  2.18  Minnesota Statutes, section 475.58, is not required. 
  2.19     (b) The issuance of the bonds under this subdivision is not 
  2.20  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.21     (c) The bonds are not included in computing any debt 
  2.22  limitation applicable to the city, and the levy of taxes under 
  2.23  Minnesota Statutes, section 475.61, to pay the principal of and 
  2.24  interest on the bonds is not subject to any levy limitation. 
  2.25     (d) The tax authorized under this section may be pledged to 
  2.26  and used for the payment of the bonds and any bonds issued to 
  2.27  refund them only if the bonds and any refunding bonds are 
  2.28  general obligations of the city. 
  2.29     Subd. 5.  [TERMINATION OF TAXES.] The tax imposed under 
  2.30  this section expires at the earlier of (1) 20 years after the 
  2.31  tax is first imposed, or (2) when the city council first 
  2.32  determines that the amount of revenues raised to pay for the 
  2.33  projects under subdivision 2 shall meet or exceed the sum of 
  2.34  $5,500,000, plus an amount equal to the costs related to the 
  2.35  issuance of bonds under subdivision 4.  Any funds remaining 
  2.36  after completion of the projects and retirement or redemption of 
  3.1   the bonds may be placed in the general funds of the city. 
  3.2      Sec. 2.  [EFFECTIVE DATE.] 
  3.3      This section is effective the day after compliance by the 
  3.4   governing body of the city of Medford with Minnesota Statutes, 
  3.5   section 645.021, subdivision 3.