HF 2733

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/08/2023 09:36am

A bill for an act
relating to local taxes; authorizing the city of Mounds View 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 MOUNDS VIEW; 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 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 Mounds View may impose, by ordinance, a sales and use tax of up to one and
one-half 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 the city of Mounds View to pay the costs of collecting
and administering the tax, including associated bond costs on bonds issued under subdivision
3, and securing and paying debt service on the bonds, and to finance up to $16,500,000, for
construction of an expanded community center into a regional amateur sports and recreational
facility.
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 Mounds View may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $16,500,000, plus an amount applied to the payment of costs
of issuing the bonds. The bonds may be paid from or secured by any funds available to the
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 the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $16,500,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay 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 timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed
under subdivision 1 may expire at an earlier time if the county 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 Mounds View and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end