HF 1424

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; local sales and use tax; expanding 
  1.3             the uses for the Hermantown local sales tax; amending 
  1.4             Laws 1996, chapter 471, article 2, section 29. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Laws 1996, chapter 471, article 2, section 29, 
  1.7   is amended to read: 
  1.8      Sec. 29.  [CITY OF HERMANTOWN; SALES AND USE TAX.] 
  1.9      Subdivision 1.  [SALES AND USE TAX AUTHORIZED.] (a) 
  1.10  Notwithstanding Minnesota Statutes, section 477A.016, or any 
  1.11  other contrary provision of law, ordinance, or city charter, the 
  1.12  city of Hermantown may, by ordinance, impose an additional sales 
  1.13  and use tax of up to one percent on sales transactions, storage, 
  1.14  and use taxable pursuant to Minnesota Statutes, chapter 297A, 
  1.15  that occur within the city. 
  1.16     (b) The proceeds of the first one-half of one percent of 
  1.17  tax imposed under this section must be used to meet the costs of 
  1.18  by the city for the following projects: 
  1.19     (1) extending a sewer interceptor line; 
  1.20     (2) construction of a booster pump station, reservoirs, and 
  1.21  related improvements to the water system; and 
  1.22     (3) construction of a police and fire station. 
  1.23     (c) Revenues received from the remaining one-half of one 
  1.24  percent of the tax authorized under this section must be used by 
  1.25  the city to pay all or part of the capital and administrative 
  2.1   costs of developing, acquiring, constructing, and initially 
  2.2   furnishing and equipping for the following projects: 
  2.3      (1) construction of a community recreation center; 
  2.4      (2) completion of a civic center services complex; 
  2.5      (3) construction and relocation of a new public works 
  2.6   facility; 
  2.7      (4) construction of roads, street improvements, and other 
  2.8   traffic control measures within the city; and 
  2.9      (5) acquisition, construction, and improvement of parks and 
  2.10  trails within the city. 
  2.11     (d) Authorized expenses include, but are not limited to, 
  2.12  acquiring property, paying construction, administrative, and 
  2.13  operating expenses related to the development of the projects 
  2.14  listed in paragraph (c), paying debt service on bonds or other 
  2.15  obligations, including lease obligations, issued to finance 
  2.16  construction, expansion, or improvement of the projects listed 
  2.17  in paragraph (c), and other compatible uses, including but not 
  2.18  limited to, parking, lighting, and landscaping. 
  2.19     Subd. 2.  [REFERENDUM.] (a) If the Hermantown city council 
  2.20  proposes to impose the sales tax authorized by this section, it 
  2.21  shall conduct a referendum on the issue. 
  2.22     (b) If the Hermantown city council initially imposes the 
  2.23  tax at a rate less than one percent and proposes increasing it 
  2.24  at a later date up to the authorized rate in subdivision 1, it 
  2.25  shall conduct a referendum on the increase. 
  2.26     (c) The question of imposing or increasing the tax must be 
  2.27  submitted to the voters at a special or general election.  The 
  2.28  tax may not be imposed unless a majority of votes cast on the 
  2.29  question of imposing the tax are in the affirmative.  The 
  2.30  commissioner of revenue shall prepare a suggested form of 
  2.31  question to be presented at the election.  This subdivision 
  2.32  applies notwithstanding any city charter provision to the 
  2.33  contrary. 
  2.34     Subd. 3.  [ENFORCEMENT; COLLECTION; AND ADMINISTRATION OF 
  2.35  TAXES.] A sales tax imposed under this section must be reported 
  2.36  and paid to the commissioner of revenue with the state sales 
  3.1   taxes, and be subject to the same penalties, interest, and 
  3.2   enforcement provisions.  The proceeds of the tax, less refunds 
  3.3   and a proportionate share of the cost of collection, shall be 
  3.4   remitted at least quarterly to the city.  The commissioner shall 
  3.5   deduct from the proceeds remitted an amount that equals the 
  3.6   indirect statewide cost as well as the direct and indirect 
  3.7   department costs necessary to administer, audit, and collect the 
  3.8   tax.  The amount deducted shall be deposited in the state 
  3.9   general fund. 
  3.10     Subd. 3a.  [BONDING AUTHORITY.] (a) The city may issue 
  3.11  general obligation bonds under Minnesota Statutes, chapter 475, 
  3.12  to finance the costs in subdivision 1, paragraph (c).  The total 
  3.13  amount of bonds issued for the projects under subdivision 1, 
  3.14  paragraph (c), may not exceed $12,900,000 in the aggregate.  An 
  3.15  election to approve the bonds is not required. 
  3.16     (b) The bonds are not included in computing any debt 
  3.17  limitation applicable to the city and the levy of taxes under 
  3.18  Minnesota Statutes, section 475.61, to pay principal of and 
  3.19  interest on the bonds is not subject to any levy limitation. 
  3.20     (c) The taxes authorized under this section may be pledged 
  3.21  to and used for the payment of the bonds and any bonds issued to 
  3.22  refund them. 
  3.23     Subd. 4.  [TERMINATION.] The portion of the tax authorized 
  3.24  under this section to finance the improvements described in 
  3.25  subdivision 1, paragraph (b), terminates at the later of (1) ten 
  3.26  years after the date of initial imposition of the tax, or (2) on 
  3.27  the first day of the second month next succeeding a 
  3.28  determination by the city council that sufficient funds have 
  3.29  been received from that portion of the tax dedicated to finance 
  3.30  the those improvements described in subdivision 1, clauses (1) 
  3.31  to (3), and to prepay or retire at maturity the principal, 
  3.32  interest, and premium due on any bonds issued for the 
  3.33  improvements.  The portion of the tax authorized under this 
  3.34  section to finance the improvements described in subdivision 1, 
  3.35  paragraph (c), terminates when the revenues raised are 
  3.36  sufficient to finance those improvements, up to an amount equal 
  4.1   to $12,900,000 plus any interest, premium, and other costs 
  4.2   associated with the bonds issued under subdivision 3a.  The city 
  4.3   council may terminate this portion of the tax earlier.  Any 
  4.4   funds remaining after completion of the improvements and 
  4.5   retirement or redemption of the bonds may be placed in the 
  4.6   general fund of the city. 
  4.7      Subd. 5.  [LOCAL APPROVAL; EFFECTIVE DATE.] This section is 
  4.8   effective the day after final enactment, upon compliance with 
  4.9   Minnesota Statutes, section 645.021, subdivision 3, by the city 
  4.10  of Hermantown. 
  4.11     [EFFECTIVE DATE.] This section is effective the day after 
  4.12  the governing body of the city of Hermantown and its chief 
  4.13  clerical officer comply with Minnesota Statutes, section 
  4.14  645.021, subdivisions 2 and 3.