HF 3716

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/24/2022 02:06pm

A bill for an act
relating to taxation; local sales and use; authorizing the city of Proctor 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 PROCTOR; 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 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 Proctor 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.
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 Proctor to pay the costs of collecting and
administering the tax and to finance up to $3,850,000 for construction of a new regional
trail in the city, including securing and paying debt service on bonds issued to finance all
or part of the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Proctor 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 $3,850,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, 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 the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so 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 Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end