HF 677

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; authorizing the city of Worthington
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 WORTHINGTON; 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, if approved by the voters
pursuant to Minnesota Statutes, section 297A.99, at the next
general election or at a special election held for that purpose
before January 1, 2006, the city of Worthington may impose by
ordinance a sales and use tax of up to one-half of one percent
for the purpose specified in subdivision 3. 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 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 Worthington 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 taxes
authorized by subdivisions 1 and 2 must be used by the city to
pay the cost of collecting and administering the taxes and to
pay for the costs of a multipurpose city facility to include
meeting rooms, a swimming pool, and a senior citizen center, and
to make renovations to the Memorial Auditorium. Authorized
expenses include, but are not limited to, acquiring property and
paying construction expenses related to these improvements, and
paying debt service on bonds or other obligations issued to
finance acquisition and construction of these improvements.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin (a) If the tax authorized
under subdivision 1 is approved by the voters, the city may
issue bonds under Minnesota Statutes, chapter 475, to pay
capital and administrative expenses for the improvements
described in subdivision 3 in an amount that does not exceed
$7,800,000. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required.
new text end

new text begin (b) 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 (c) The debt represented by the bonds is not included in
computing any debt limitation applicable to the city, and 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.
new text end

new text begin Subd. 5. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under
subdivisions 1 and 2 expire at the earlier of (1) ten years, or
(2) when the city council determines that the amount of revenue
received from the taxes to pay for the projects under
subdivision 3 equals or exceeds $7,800,000 plus the additional
amount needed to pay the costs related to issuance of bonds
under subdivision 4, including interest on the bonds. 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. 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
the governing body of the city of Worthington and its chief
clerical officer timely comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end