HF 3241

as introduced - 86th Legislature (2009 - 2010) Posted on 03/01/2010 09:21am

A bill for an act
relating to taxation; authorizing the city of Marshall to impose a local sales and
use tax, a local lodging tax, and a local food and beverages tax.

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

Section 1. new text begin CITY OF MARSHALL; SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivisions 1, 2, and 3, or 477A.016, or any other law, ordinance, or city
charter, the city of Marshall, if approved by the voters at a general election or a special
election held within two years of the date of final enactment of this section, may impose
any or all of the taxes described in this section.
new text end

new text begin Subd. 2. new text end

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

new text begin The city of Marshall may impose by
ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions
1, 2, and 3, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the taxes
imposed under subdivision 2 must be used by the city of Marshall to pay the costs of
collecting and administering the sales and use taxes and to pay all or part of the costs of the
new and existing facilities of the Minnesota Emergency Response and Industry Training
Center and all or part of the costs of the facilities of the Southwest Minnesota Regional
Amateur Sports Center. Authorized expenses include, but are not limited to, acquiring
property, predesign, design, and paying construction, furnishing, and equipment costs
related to these facilities and paying debt service on bonds or other obligations issued by
the city of Marshall under subdivision 4 to finance the capital costs of these facilities.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin (a) If the imposition of a sales and use tax is approved by the voters,
the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
to refund bonds previously issued. The aggregate principal amount of bonds issued under
this subdivision may not exceed $17,290,000, 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 Marshall, including the taxes authorized under subdivision 2.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the
city of Marshall, 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. 5. new text end

new text begin Lodging tax. new text end

new text begin The city of Marshall may impose by ordinance a tax of up to
1-1/2 percent on the gross receipts subject to the lodging tax under Minnesota Statutes,
section 469.190, for the purposes specified in subdivision 6. This lodging tax is in addition
to any tax imposed under Minnesota Statutes, section 469.190, and may be imposed
within a tax district defined by the city council, which may include areas of the city of
Marshall which are not contiguous.
new text end

new text begin Subd. 6. new text end

new text begin Use of lodging tax revenues. new text end

new text begin The revenues derived from the tax imposed
under subdivision 5 must be used by the city of Marshall to pay the costs of collecting
and administering the lodging tax, to pay all or part of the operating costs of the new and
existing facilities of the Minnesota Emergency Response and Industry Training Center,
including the payment of debt service on bonds issued under subdivision 4 if the revenues
derived from the sales and use tax imposed under subdivision 2 are insufficient to pay
for the incurred costs, and to pay all or part of the operating costs of the facilities of the
Southwest Minnesota Regional Amateur Sports Center, including the payment of debt
service on bonds issued under subdivision 4 if the revenues derived from the sales and use
tax imposed under subdivision 2 are insufficient to pay for the incurred costs.
new text end

new text begin Subd. 7. new text end

new text begin Food and beverages tax. new text end

new text begin The city of Marshall may impose by ordinance
an additional sales tax of up to 1-1/2 percent on all sales of food and beverages primarily
for consumption on the premises by restaurants and places of refreshment that occur
in the city of Marshall. The provisions of Minnesota Statutes, section 297A.99,
except subdivisions 1, 2, and 3, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Use of food and beverages tax. new text end

new text begin The revenues derived from the tax
imposed under subdivision 7 must be used by the city of Marshall to pay the costs
of collecting and administering the food and beverages tax, to pay all or part of the
operating costs of the new and existing facilities of the Minnesota Emergency Response
and Industry Training Center, including the payment of debt service on bonds issued
under subdivision 4 if the revenues derived from the sales and use tax imposed under
subdivision 2 are insufficient to pay for the incurred costs, and to pay all or part of the
operating costs of the facilities of the Southwest Minnesota Regional Amateur Sports
Center, including the payment of debt service on bonds issued under subdivision 4 if the
revenues derived from the sales and use tax imposed under subdivision 2 are insufficient
to pay for the incurred costs.
new text end

new text begin Subd. 9. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivisions 2, 5, and
7 expire at the earlier of (1) 15 years after the tax is first imposed, or (2) when the city
council determines that the amount of revenues received from the taxes to pay for the
capital, operating, and administrative costs of the facilities under subdivisions 3, 6,
and 8 first equals or exceeds the amount authorized to be spent for the facilities plus
the additional amount needed to pay the costs related to issuance of the bonds under
subdivision 4, including interest on the bonds. Any funds remaining after payment of all
the costs and retirement or redemption of the bonds must be placed in the general fund
of the city. The taxes imposed under subdivisions 2, 5, and 7 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 Marshall with Minnesota Statutes, section 645.021,
subdivision 3.
new text end