SF 2618

Introduction - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing local option sales 
  1.3             taxes; limiting scope; amending Minnesota Statutes 
  1.4             2002, sections 297A.99, subdivisions 1, 2, 3; 
  1.5             477A.016; Minnesota Statutes 2003 Supplement, section 
  1.6             297A.99, subdivisions 5, 12; repealing Minnesota 
  1.7             Statutes 2002, section 297A.99, subdivision 13. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 297A.99, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [CITIES OF THE FIRST CLASS; AUTHORIZATION; 
  1.12  SCOPE.] (a) A political subdivision of this state city of the 
  1.13  first class, as defined in section 410.01, may by ordinance 
  1.14  impose a general sales tax if permitted by special law or if the 
  1.15  political subdivision enacted and imposed the tax before the 
  1.16  effective date of section 477A.016 and its predecessor provision 
  1.17  at a rate of tax of one-half of one percent, except the city of 
  1.18  Duluth may impose a tax at a rate not to exceed one percent.  A 
  1.19  city of the first class may, by ordinance, extend the time to 
  1.20  impose a sales tax that was enacted before July 1, 2004. 
  1.21     (b) This section governs the imposition of a general sales 
  1.22  tax by the political subdivision.  The provisions of this 
  1.23  section preempt the provisions of any special law: 
  1.24     (1) enacted before June 2, 1997, or 
  1.25     (2) enacted on or after June 2, 1997, that does not 
  1.26  explicitly exempt the special law provision from this section's 
  2.1   rules by reference The provisions of subdivisions 4 through 12 
  2.2   apply to a tax imposed under this subdivision. 
  2.3      (c) This section does not apply to or preempt a sales tax 
  2.4   on motor vehicles or A city of the first class may impose, by 
  2.5   ordinance, a special excise tax on motor vehicles of up to $20 
  2.6   per motor vehicle purchased or acquired from any person engaged 
  2.7   in the business of selling motor vehicles within the city. 
  2.8      [EFFECTIVE DATE.] This section is effective on and after 
  2.9   July 1, 2004. 
  2.10     Sec. 2.  Minnesota Statutes 2002, section 297A.99, 
  2.11  subdivision 2, is amended to read: 
  2.12     Subd. 2.  [LOCAL RESOLUTION BEFORE APPLICATION FOR CITIES 
  2.13  OF THE SECOND AND THIRD CLASS; AUTHORITY; SCOPE.] Before the 
  2.14  governing body of a political subdivision requests legislative 
  2.15  approval of a special law for a local sales tax that is 
  2.16  administered under this section, it shall adopt a resolution 
  2.17  indicating its approval of the tax.  The resolution must 
  2.18  include, at a minimum, information on the proposed tax rate, how 
  2.19  the revenues will be used, the total revenue that will be raised 
  2.20  before the tax expires, and the estimated length of time that 
  2.21  the tax will be in effect.  This subdivision applies to local 
  2.22  laws enacted after June 30, 1998. (a) Subject to the limitations 
  2.23  in paragraphs (b) to (d), a city of the second or third class, 
  2.24  as defined in section 410.01, may, by ordinance, impose a 
  2.25  general sales tax at a rate of one-half of one percent, and may 
  2.26  extend the time to impose a sales tax that was enacted prior to 
  2.27  July 1, 2004. 
  2.28     (b) The proceeds of a tax imposed or extended under this 
  2.29  subdivision must be dedicated exclusively to payment of the cost 
  2.30  of a specific capital improvement that provides a benefit to the 
  2.31  city and to the county, region, or territory beyond the city 
  2.32  boundaries, and must be an improvement in at least one of the 
  2.33  following areas: 
  2.34     (1) regional convention or civic centers; 
  2.35     (2) regional airports; 
  2.36     (3) public libraries; 
  3.1      (4) the city's matching funds requirement for major capital 
  3.2   infrastructure improvements to arterial roads, bridges, or 
  3.3   railroads; 
  3.4      (5) public safety equipment or facilities for dispatching, 
  3.5   communications, computers, or training; or 
  3.6      (6) flood control or protection. 
  3.7      (c) Prior to imposition of the tax, the city must provide 
  3.8   to the commissioner information that shows the tax will fund an 
  3.9   improvement that meets the requirements of paragraph (b). 
  3.10     (d) If the city passes an ordinance to impose the tax, the 
  3.11  ordinance must be published for two consecutive weeks in a 
  3.12  newspaper of general circulation within the city.  The voters of 
  3.13  the city may submit a petition requesting a referendum on the 
  3.14  proposed tax.  The petition must be signed by at least ten 
  3.15  percent of the voters in the city voting in the last general 
  3.16  election and filed with the city clerk within 30 days after the 
  3.17  second publication of the ordinance.  If a valid petition for a 
  3.18  referendum is timely filed, the ordinance is not effective until 
  3.19  it has been submitted to the voters of the city at a general or 
  3.20  special election and a majority of votes cast on the question of 
  3.21  approving the tax are in the affirmative.  
  3.22     [EFFECTIVE DATE.] This section is effective on and after 
  3.23  July 1, 2004. 
  3.24     Sec. 3.  Minnesota Statutes 2002, section 297A.99, 
  3.25  subdivision 3, is amended to read: 
  3.26     Subd. 3.  [REQUIREMENTS FOR ADOPTION, USE, TERMINATION 
  3.27  SPECIAL LAW; LOCAL RESOLUTION; REFERENDUM.] (a) Imposition of a 
  3.28  local sales tax is subject to approval by voters of the 
  3.29  political subdivision at a general election A city of the second 
  3.30  or third class that proposes to adopt a sales tax to pay for the 
  3.31  costs of a project that is not included in subdivision 2, and 
  3.32  cities of the fourth class and counties may impose a general 
  3.33  sales tax if permitted by special law.  
  3.34     (b) The proceeds of the tax must be dedicated exclusively 
  3.35  to payment of the cost of a specific capital improvement which 
  3.36  is designated at least 90 days before the referendum on 
  4.1   imposition of the tax is conducted Before the governing body of 
  4.2   a city or county requests legislative approval of a special law 
  4.3   for a local sales tax that is administered under this section, 
  4.4   it shall adopt a resolution indicating its approval of the tax.  
  4.5   The resolution must include, at a minimum, information on the 
  4.6   proposed tax rate, how the revenues will be used, the total 
  4.7   revenue that will be raised before the tax expires, and the 
  4.8   estimated length of time that the tax will be in effect. 
  4.9      (c) The tax must terminate after the improvement designated 
  4.10  under paragraph (b) has been completed Imposition of a local 
  4.11  sales tax under this subdivision is subject to approval by 
  4.12  voters of the city or county at a general election. 
  4.13     (d) After a sales tax imposed by a political subdivision 
  4.14  has expired or been terminated, the political subdivision is 
  4.15  prohibited from imposing a local sales tax for a period of one 
  4.16  year.  Notwithstanding subdivision 13, this paragraph applies to 
  4.17  all local sales taxes in effect at the time of or imposed after 
  4.18  May 26, 1999 The proceeds of the tax must be dedicated 
  4.19  exclusively to payment of the cost of a specific capital 
  4.20  improvement which is designated at least 90 days before the 
  4.21  referendum on imposition of the tax is conducted.  
  4.22     (e) The tax must terminate after the improvement designated 
  4.23  under paragraph (d) has been completed. 
  4.24     [EFFECTIVE DATE.] This section is effective on and after 
  4.25  July 1, 2004. 
  4.26     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  4.27  297A.99, subdivision 5, is amended to read: 
  4.28     Subd. 5.  [TAX RATE.] (a) The tax rate is as specified in 
  4.29  subdivision 1 or 2, or in the special law authorization and as 
  4.30  imposed by the political subdivision. 
  4.31     (b) The full political subdivision rate applies to any 
  4.32  sales that are taxed at a state rate, and the political 
  4.33  subdivision must not have more than one local sales tax rate or 
  4.34  more than one local use tax rate.  This paragraph does not apply 
  4.35  to sales or use taxes imposed on electricity, piped natural or 
  4.36  artificial gas, or other heating fuels delivered by the seller, 
  5.1   or the retail sale or transfer of motor vehicles, aircraft, 
  5.2   watercraft, modular homes, manufactured homes, or mobile homes. 
  5.3      [EFFECTIVE DATE.] This section is effective on and after 
  5.4   July 1, 2004. 
  5.5      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  5.6   297A.99, subdivision 12, is amended to read: 
  5.7      Subd. 12.  [EFFECTIVE DATES; NOTIFICATION.] (a) A political 
  5.8   subdivision may impose a tax under this section starting only on 
  5.9   the first day of a calendar quarter year.  A political 
  5.10  subdivision may repeal a tax under this section stopping only on 
  5.11  the last day of a calendar quarter. 
  5.12     (b) The political subdivision shall notify the commissioner 
  5.13  of revenue at least 90 days before imposing, changing the rate 
  5.14  of, or repealing a tax under this section. 
  5.15     (c) The political subdivision shall change the rate of tax 
  5.16  imposed under this section starting only on the first day of a 
  5.17  calendar quarter, and only after the commissioner has notified 
  5.18  sellers at least 60 days prior to the change. 
  5.19     (d) The political subdivision shall apply the rate change 
  5.20  for sales tax imposed under this section to purchases from 
  5.21  printed catalogs, wherein the purchaser computed the tax based 
  5.22  upon local tax rates published in the catalog, starting only on 
  5.23  the first day of a calendar quarter, and only after the 
  5.24  commissioner has notified sellers at least 120 days prior to the 
  5.25  change. 
  5.26     (e) The political subdivision shall apply local 
  5.27  jurisdiction boundary changes to taxes imposed under this 
  5.28  section starting only on the first day of a calendar quarter, 
  5.29  and only after the commissioner has notified sellers at least 60 
  5.30  days prior to the change. 
  5.31     [EFFECTIVE DATE.] This section is effective on and after 
  5.32  July 1, 2004. 
  5.33     Sec. 6.  Minnesota Statutes 2002, section 477A.016, is 
  5.34  amended to read: 
  5.35     477A.016 [NEW TAXES PROHIBITED.] 
  5.36     No county, city, town or other taxing authority shall 
  6.1   increase a present tax or impose a new tax on sales or income.  
  6.2      [EFFECTIVE DATE.] This section is effective on and after 
  6.3   July 1, 2004. 
  6.4      Sec. 7.  [REPEALER.] 
  6.5      Minnesota Statutes 2002, section 297A.99, subdivision 13, 
  6.6   is repealed effective July 1, 2004.