Office of the Revisor of Statutes
SF 3406
Introduction - 86th Legislature (2009 - 2010)
Posted on 05/04/2010 09:16 p.m.
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A bill for an act
relating to taxation; modifying Rochester's local option sales tax; amending
Laws 1998, chapter 389, article 8, section 43, subdivisions 3, as amended, 4,
as amended, 5, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and
airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional
ground water quality; and
(4) construction of a regional recreation and sports center and other higher education
facilities available for both community and student use.
The total amount of capital expenditures or bonds for these projects that may be paid from
the revenues raised from the taxes authorized in this deleted text begin sectiondeleted text end new text begin paragraphnew text end may not exceed
$111,500,000. The total amount of capital expenditures or bonds for the project in clause
(4) that may be paid from the revenues raised from the taxes authorized in this section
may not exceed $28,000,000.
new text begin
(b) If approved by the voters as required under subdivision 5, the city must use
the revenues received from the taxes authorized by subdivisions 1 and 2 to pay for the
projects authorized in paragraph (a), or the following projects:
new text end
new text begin
(1) transportation infrastructure improvements, including, but not limited to,
regional highway and airport improvements;
new text end
new text begin
(2) improvements to the Rochester Recreation Center Complex;
new text end
new text begin
(3) a water, sewer, and storm sewer project to improve regional infrastructure;
new text end
new text begin
(4) capital costs for land acquisition and construction of higher education facilities
and improvements; or
new text end
new text begin
(5) area public safety facility construction and improvements.
new text end
new text begin
The total amount of capital expenditures or bonds for the projects in this paragraph
that may be paid from the revenues raised from the taxes authorized by this section must
not exceed $111,500,000.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
Subd. 4.
Bonding authority.
(a) The city may issue bonds under Minnesota
Statutes, chapter 475, to finance the capital expenditure and improvement projectsnew text begin in
subdivision 3, paragraph (a)new text end . An election to approve up to $71,500,000 in bonds under
Minnesota Statutes, section 475.58, may be held in combination with the election to
authorize imposition of the tax under subdivision 1. Whether to permit imposition of the
tax and issuance of bonds may be posed to the voters as a single question. The question
must state that the sales tax revenues are pledged to pay the bonds, but that the bonds are
general obligations and will be guaranteed by the city's property taxes. An election to
approve up to an additional $40,000,000 of bonds new text begin for projects in subdivision 3, paragraph
(a), new text end under Minnesota Statutes, section 475.58, may be held in combination with the
election to authorize extension of the tax deleted text begin under subdivision 5, paragraph (b)deleted text end .
new text begin
(b) The city may issue bonds under Minnesota Statutes, chapter 475, to finance
the capital expenditures and improvement projects in subdivision 3, paragraph (b). An
election to approve up to $111,500,000 in bonds may be held in combination with the
election to permit extension of the tax in subdivision 1. Whether to permit extension of
the tax and issuance of the bonds may be posed to the voters as a single question. The
question must state that the sales tax revenues are pledged to pay the bonds, but that the
bonds are general obligations and will be guaranteed by the city's property taxes.
new text end
new text begin (c) new text end The city may enter into an agreement with Olmsted County under which the
city and the county agree to jointly undertake and finance certain roadway infrastructure
improvements. The agreement may provide that the city will make available to the county
a portion of the sales tax revenues collected pursuant to the authority granted in this
section and the bonding authority provided in this subdivision. The county may, pursuant
to the agreement, issue its general obligation bonds in a principal amount not exceeding
the amount authorized by its agreement with the city payable primarily from the sales
tax revenues from the city under the agreement. The county's bonds must be issued in
accordance with the provisions of Minnesota Statutes, chapter 475, except that no election
is required for the issuance of the bonds and the bonds are not included in the net debt
of the county.
deleted text begin (b)deleted text end new text begin (d)new text end The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, section 275.60.
deleted text begin (c)deleted text end new text begin (e)new text end The bonds are not included in computing any debt limitation applicable to the
city, and the 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.
The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to
pay eligible capital expenditures and improvements may not exceed $111,500,000, plus an
amount equal to the costs related to issuance of the bonds.
deleted text begin (d)deleted text end new text begin (f)new text end The taxes may be pledged to and used for the payment of the bonds and
any bonds issued to refund them, only if the bonds and any refunding bonds are general
obligations of the city.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
Subd. 5.
Termination of taxes.
(a) The taxes imposed under subdivisions 1 and
2 expire deleted text begin at the later of (1) December 31, 2009, or (2)deleted text end when the city council determines
that sufficient funds have been received from the taxes to finance the deleted text begin first $71,500,000
of capital expenditures and bonds for thedeleted text end projects authorized in subdivision 3, including
the amount to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued deleted text begin for the projectsdeleted text end under subdivision 4deleted text begin , unless the taxes are extended as allowed
in paragraph (b)deleted text end . Any funds remaining after completion of the project and retirement or
redemption of the bonds shall also be used to fund the projects under subdivision 3. The
taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
determines by ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
if approved by the voters of the city at a special election in 2005 or the general election in
2006. The question put to the voters must indicate that an affirmative vote would allow
up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
extended under this paragraph, the taxes expire when the city council determines that
sufficient funds have been received from the taxes to finance the projects and to prepay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects under subdivision 4. Any funds remaining after completion of the project and
retirement or redemption of the bonds may be placed in the general fund of the city.
new text begin
(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may,
by ordinance, extend the taxes authorized in subdivisions 1 and 2 for the projects in
subdivision 3, paragraph (b), if approved by the voters at a general or special election
before December 31, 2012. The question put to the voters must indicate that an affirmative
vote would allow up to an additional $111,500,000 of sales tax revenues to be raised and
up to $111,500,000 of bonds to be issued above the amount authorized in paragraph (a)
for the projects specified in subdivision 3, paragraph (b).
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 Rochester with Minnesota Statutes, section 645.021,
subdivision 3.
new text end