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Minnesota Legislature

Office of the Revisor of Statutes

HF 1485

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 02:06pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4
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2.31 2.32 2.33

A bill for an act
relating to taxation; authorizing the city of Worthington to impose a local sales
and use tax and an excise tax for specified projects.

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

Section 1. new text beginCITY OF WORTHINGTON; 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,
sections 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of
Worthington may impose, by ordinance, a sales and use tax of one-half of one percent for
the purposes 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 contrary 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 of Worthington 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 tax revenues. new text end

new text begin (a) The revenues derived from the taxes authorized under
subdivisions 1 and 2 must be used by the city of Worthington to pay the costs of collecting
and administering the tax and paying for the projects listed in this subdivision; including
securing and paying debt service on bonds issued to finance all or part of the following
projects:
new text end

new text begin (1) improvements to the aquatic center;
new text end

new text begin (2) improvements to the field house;
new text end

new text begin (3) improvements to the ice arena;
new text end

new text begin (4) other park and recreation capital projects and improvements;
new text end

new text begin (5) lake quality improvement; and
new text end

new text begin (6) improvements to the 10th Street plaza.
new text end

new text begin (b) The total amount of projects to be funded with the taxes imposed under subdivisions
1 and 2 shall not exceed $25,000,000 plus the costs related to the issuance of and paying
debt service on bonds for these projects.
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 of Worthington may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 3. The aggregate principal amount of bonds issued under this
subdivision may not exceed $25,000,000 plus an amount applied to the payment of costs
of issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Worthington, including the taxes authorized under subdivisions 1 and 2. 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 subject to any provisions of the home rule charter of the city of
Worthington and are not included in computing any debt limitation applicable to the city.
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. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
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) 15 years after the taxes are first imposed; or (2) when the city council
determines that the city has received $25,000,000 from this tax to fund the projects listed
in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance
of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the city's general fund. 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 comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end