HF 651

as introduced - 91st Legislature (2019 - 2020) Posted on 02/04/2019 03:04pm

A bill for an act
relating to taxation; sales and use; authorizing the city of West St. Paul to impose
a local option sales tax.

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

Section 1. new text begin CITY OF WEST ST. PAUL; LOCAL TAX 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 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 6, 2018, the city
of West St. Paul may impose, by ordinance, a sales and use tax of 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 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 West St. Paul to pay the costs of collecting
and administering the tax and to finance the capital and administrative costs of priority 1
and priority 2 street projects as identified in the city's pavement management plan. The total
that may be raised from the tax to pay for these projects is limited to $28,000,000, plus the
costs related to the issuance and paying debt service on bonds for these projects.
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 West St. Paul may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $28,000,000, plus an amount to be 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 West St. Paul, 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 West St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal 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 city council determines
that $28,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall 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 West St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end