HF 2652

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

A bill for an act
relating to taxation; authorizing the city of Luverne to impose sales and motor
vehicle excise taxes for certain purposes.

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

Section 1. new text begin CITY OF LUVERNE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, if approved
by the voters pursuant to Minnesota Statutes, section 297A.99, the city of Luverne may
impose by ordinance a sales and use tax of one-half of one percent for the purposes
specified in subdivision 3. 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 contrary provision of law, ordinance, or city charter, the city of
Luverne may impose by ordinance, for the purposes specified in subdivision 3, an excise
tax of up to $20 per motor vehicle, as defined by ordinance, purchased or acquired from
any person engaged within the city 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 Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay the cost of collecting and administering the taxes
and to pay all or part of the expenses for the following projects:
new text end

new text begin (1) capital improvements and renovation of the Historic Palace Theatre in an amount
not to exceed $3,000,000; and
new text end

new text begin (2) capital improvements and renovation of a vacated community hospital for the
Minnesota West Community and Technical College, not to exceed $3,000,000.
new text end

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

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin If the taxes under subdivisions 1 and 2 are approved by voters
pursuant to Minnesota Statutes, section 297A.99, the city of Luverne may issue, without
an additional election, bonds, in one or more series, in the aggregate principal amount
not to exceed $3,000,000 to pay capital and administrative costs of the projects listed in
subdivision 3. The debt represented by the bonds is not included in computing any debt
limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable to the city.
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 later of 30 years after the imposition of the tax or when the Luverne city
council determines that sufficient funds have been received from the taxes to prepay
or retire at maturity the principal, interest, and premium due on any bonds issued for
the projects under subdivision 4. Any funds remaining after expiration of the taxes and
retirement of the bonds may be placed in a capital project fund of the city. The taxes
imposed under subdivisions 1 and 2 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 compliance by the
governing body of the city of Luverne with Minnesota Statutes, section 645.021,
subdivision 3.
new text end