HF 511

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/13/2025 02:43 p.m.

A bill for an act
relating to taxes; local sales and use; authorizing the city of Plymouth 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 PLYMOUTH; 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 (a) Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3a, or 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 Plymouth may impose by ordinance a sales and
use tax of up to one-half 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.
new text end

new text begin (b) The city of Plymouth must adopt a resolution indicating its approval of the tax by
the later of June 30, 2025, or 30 days after enactment of this act. The contents of the
resolution must meet the requirements of section 297A.99, subdivision 2, paragraph (a),
clauses (1) to (5).
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 Plymouth to pay the costs of collecting and
administering the tax and paying for the following projects in the city, plus associated costs
related to the issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $45,000,000 for improvements to the Plymouth Ice Center, including construction
of the adjacent City Center public parking ramp;
new text end

new text begin (2) $40,000,000 for improvements to the Plymouth Community Center, including
construction of a permanent fieldhouse structure; and
new text end

new text begin (3) $35,000,000 for construction of and improvements to Plymouth regional sports
complexes.
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 Plymouth may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by 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 $120,000,000, plus an amount 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 Plymouth, 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 city
of Plymouth. 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), 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, must be placed in the
general fund of the city. The tax imposed under subdivision 1 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 the governing body of the
city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end