HF 579

as introduced - 87th Legislature (2011 - 2012) Posted on 02/17/2011 10:38am

A bill for an act
relating to taxation; authorizing the city of Marshall 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 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
the tax authorized under subdivision 2.
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 tax
authorized under subdivision 2 must be used by the city of Marshall to pay the costs of
collecting and administering the sales and use tax 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 new 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 tax 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 Termination of taxes. new text end

new text begin The tax imposed under subdivision 2 expires 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 tax to pay for the capital and administrative
costs of the facilities under subdivision 3 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 such costs and retirement or redemption of the bonds shall
be placed in the general fund of the city. The tax imposed under subdivision 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 Marshall with Minnesota Statutes, section 645.021,
subdivision 3.
new text end