HF 700

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 Cloquet to
impose a local sales tax.

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

Section 1. new text begin CITY OF CLOQUET; 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, or at a special
election held for this purpose, the city of Cloquet 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
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 Cloquet 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 the taxes and to pay for the
following projects:
new text end

new text begin (1) construction and completion of park improvement
projects, including riverfront task force recommendations,
Veteran's Park, soccer complex, baseball/softball complex, and
ice arena debt service;
new text end

new text begin (2) extension of water and sewer lines and other
improvements to city infrastructure necessary for construction
of a city industrial park; and
new text end

new text begin (3) closure of the Cloquet Municipal Landfill.
new text end

new text begin 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) 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 $7,000,000. 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) 14 years, or
(2) when the city council determines that sufficient funds have
been received from the taxes to finance the capital and
administrative costs of the improvements described in
subdivision 3, 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 Cloquet and its chief clerical
officer timely comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end