HF 4409

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 02:22pm

A bill for an act
relating to local taxes; authorizing the city of Park Rapids to impose a local sales
and use tax.

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

Sec. 5. new text begin CITY OF PARK RAPIDS; 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 Park 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.
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 Notwithstanding the requirements of
Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), the revenues derived
from the tax authorized under subdivision 1 must be used by the city of Park Rapids to pay
the costs of collecting and administering the tax and paying for the following arterial roadway
improvement projects in the city, including securing and paying debt service on bonds issued
to finance all or part of the following projects:
new text end

new text begin (1) $3,201,000, plus associated bonding costs, for improvements to 12th Street and
Eastern Avenue from the southeast into the city;
new text end

new text begin (2) $2,377,000, plus associated bonding costs, for improvements to 8th Street and
Fishhook Avenue from the south into the city;
new text end

new text begin (3) $1,309,500, plus associated bonding costs, for improvements to Kaywood Drive on
the north side into the city and the Walmart retail area;
new text end

new text begin (4) $1,261,000, plus associated bonding costs, for improvements to Huntsinger Avenue
on the east side into the city and near Park Rapids High School; and
new text end

new text begin (5) $651,500, plus associated bonding costs, for improvements to Main Avenue South
into the city's downtown business district.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Park Rapids may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed: (1) $3,201,000 for the project listed in
subdivision 2, clause (1), plus an amount to be applied to the payment of the costs of issuing
the bonds; (2) $2,377,000 for the project listed in subdivision 2, clause (2), plus an amount
to be applied to the payment of the costs of issuing the bonds; (3) $1,309,500 for the project
listed in subdivision 2, clause (3), plus an amount to be applied to the payment of the costs
of issuing the bonds; (4) $1,261,000 for the project listed in subdivision 2, clause (4), plus
an amount to be applied to the payment of the costs of issuing the bonds; and (5) $651,000
for the project listed in subdivision 2, clause (5), 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 Park 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.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Park 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.
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 the tax is 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 for
projects approved by 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. 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, must 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 Park Rapids and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end