HF 377

as introduced - 87th Legislature (2011 - 2012) Posted on 02/07/2011 09:37am

A bill for an act
relating to taxation; sales and use; authorizing the city of Hutchinson to impose a
sales and use tax.

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

Section 1. new text begin CITY OF HUTCHINSON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, as approved by
the voters at a referendum held at the 2010 general election, the city of Hutchinson
may impose by ordinance a sales and use tax of up to one-half of one percent for the
purposes specified in subdivision 3. Except as otherwise provided in this section,
Minnesota Statutes, section 297A.99, governs the imposition, administration, collection,
and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section
297A.99, subdivision 1, paragraph (d), does not apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson
may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up
to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
engaged within the city in the business of selling motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the taxes authorized by this
section must be used to pay the cost of collecting and administering the tax and to finance
the costs of constructing the water treatment facility and renovating the wastewater
treatment facility in the city of Hutchinson. Authorized costs include, but are not limited
to, construction and engineering costs of the projects and associated bond costs.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The taxes authorized under subdivisions 1 and 2
terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or
(2) when the Hutchinson City Council determines that the amount of revenues raised is
sufficient to pay for the projects under subdivision 3, plus the amount needed to finance
the capital and administrative costs for the projects specified in subdivision 3, and to repay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects. Any funds remaining after completion of the projects specified in subdivision
3 and retirement or redemption of the associated bonds may be placed in the general
fund of the city. The taxes imposed under subdivisions 1 and 2 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 compliance by the
governing body of the city of Hutchinson with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end