HF 1135

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Winona; authorizing the city 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 WINONA; 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 at a special election held before December 31, 2007, the city of Winona may
impose by ordinance a sales and use tax of up to one-half of one percent for the purpose
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 revenues. new text end

new text begin The proceeds of the tax imposed under this section shall
be used to pay the city-borne costs for the construction of a street connection from the city
of Winona to Minnesota State Highways 61 and 43. The construction will provide access
to the city's newly built industrial park and additional access to a hospital.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Winona may issue bonds in an amount
not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital
expenditures under subdivision 2. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is
not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the
bonds must not be included in computing any debt limitations applicable to the city, and
the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or
any interest on the bonds must not be subject to any levy limitation.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The tax authorized under subdivision 1 terminates
at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when
the city council determines that sufficient funds have been raised from the tax to finance
the capital and administrative costs of the project described in subdivision 2, plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
3, including interest on the bonds. Any funds remaining after completion of the project
specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may
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 compliance by
the governing body of the city of Winona with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end