HF 3994

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; authorizing Independent School District No. 544, Fergus Falls,
to impose a local sales and use tax and a motor vehicle excise tax.

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

Section 1. new text begin INDEPENDENT SCHOOL DISTRICT NO. 544, FERGUS FALLS;
TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, if approved by the voters pursuant to Minnesota
Statutes, section 297A.99, at the next general election, or at a special election held for
this purpose on or before December 31, 2008, Independent School District No. 544,
Fergus Falls, may impose by resolution a sales and use tax of up to one percent for the
purpose specified in subdivision 3. Except as 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.
new text end

new text begin Subd. 2. new text end

new text begin Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, Independent School District No. 544, Fergus
Falls, may impose by resolution, for the purposes specified in subdivision 3, an excise tax
of up to $20 per motor vehicle, as defined by resolution, purchased or acquired from any
person engaged within the school district in the business of selling motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin (a) Revenues received from taxes authorized by
subdivisions 1 and 2 must be used by the school district to pay the cost of collecting the
taxes and to pay for the following capital projects:
new text end

new text begin (1) construction of a new high school for grades 9 to 12; and
new text end

new text begin (2) renovation, expansion, and repair of the Fergus Falls Middle School.
new text end

new text begin (b) Authorized expenses include, but are not limited to, acquiring property and
paying construction expenses related to these improvements, and paying debt service
on bonds or other obligations issued to finance acquisition and construction of these
improvements.
new text end

new text begin (c) The total amount of revenues from the taxes imposed under subdivisions 1 and 2
that may be used to fund the projects in clauses (1) and (2) is $30,000,000, plus the costs
of collecting the taxes and any associated bond costs.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin (a) The school district may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the
improvements described in subdivision 3 in an amount that does not exceed $30,000,000.
An election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, section 275.60.
new text end

new text begin (c) The debt represented by the bonds is not included in computing any debt
limitation applicable to the school district, and any levy of taxes under Minnesota Statutes,
section 475.61, to pay principal of and interest on the bonds is not subject to any levy
limitation. Any debt remaining on projects listed under subdivision 3 after the application
of revenues received under subdivisions 1 and 2 may be included in the district's debt
service revenue under section 123B.53.
new text end

new text begin Subd. 5. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivisions 1 and 2
expire at the earlier of (1) 20 years, or (2) when the school district board determines that
sufficient funds have been received from the taxes to finance the capital and administrative
costs of the improvements described in subdivision 3, plus the additional amount needed
to pay the costs related to issuance of bonds under subdivision 4, including interest on the
bonds. Any funds remaining after completion of the projects and retirement or redemption
of the bonds may be placed in the general fund of the school district. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the school district so determines
by resolution.
new text end