HF 3748

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/24/2022 02:06pm

A bill for an act
relating to local taxes; authorizing Rice County to impose a local sales and use
tax.

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

Section 1. new text begin RICE COUNTY; 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 or ordinance, and if approved
by the voters at a general election as required under Minnesota Statutes, section 297A.99,
subdivision 3, Rice County may impose by ordinance a sales and use tax of three-eighths
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 The revenues derived from the tax authorized
under subdivision 1 must be used by Rice County to pay the costs of collecting and
administering the tax and paying for up to $77,000,000 for construction of a public safety
facility in the county, including associated bond costs for any bonds issued under subdivision
3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Rice County may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the facilities 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 $77,000,000, 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 Rice County, 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 Rice
County, 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) 30 years
after being first imposed, or (2) when the county board of commissioners determines that
the amount received from the tax is sufficient to pay for the project costs authorized under
subdivision 2, 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, shall be placed in the general fund of
the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
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 Rice
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end