HF 1748

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/15/2023 09:11am

A bill for an act
relating to taxes; local sales and use; expanding the authority of the city of Excelsior
to impose a local sales tax; amending Laws 2019, First Special Session chapter 6,
article 6, section 18.

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

Section 1.

Laws 2019, First Special Session chapter 6, article 6, section 18, is amended
to read:

Sec. 18. CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half
of one percent for the purposes specified in subdivision 2, as approved by the voters at the
November 4, 2014, general election. 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 begin Subd. 1a. new text end

new text begin Authorization; additional revenues allowed. new text end

new text begin Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, ordinance, or city charter, and if approved by
the voters at a general election as required under Minnesota Statutes, section 297A.99,
subdivision 3, the city of Excelsior may collect additional revenue from the sales and use
tax authorized under subdivision 1, for the purpose specified in subdivision 2a. 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. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text end

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and
administering the tax and to finance the capital and administrative costs of improvements
to the commons as indicated in the Commons Master Plan as adopted by the city council
on November 20, 2017. Authorized expenses include, but are not limited to, improvements
for walkability and accessibility, enhancement of beach area and facilities, prevention and
management of shoreline erosion, redesign of the port and band shell, improvement of
playground equipment, and securing and paying debt service on bonds issued under
subdivision 3 or other obligations issued to the improvements listed in this subdivision in
the city of Excelsior.

new text begin Subd. 2a. new text end

new text begin Use of sales and use tax revenues; expanded. new text end

new text begin The revenues derived from
the additional authorization granted under subdivision 1a must be used by the city of
Excelsior to pay the costs of collecting and administering the tax and paying for $23,000,000,
plus associated bonding costs, for the costs of improvements to the commons as indicated
in the Commons Master Plan as adopted by the city council on January 9, 2023, including
securing and paying debt service on bonds issued to finance the project.
new text end

Subd. 3.

Bonding authority.

(a) If the imposition of the tax is approved by the voters
under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter
475, to finance all or a portion of the costs of the projects authorized in subdivision 2,
without a second vote. The aggregate principal amount of bonds issued under this subdivision
may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of
issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
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 begin Subd. 3a. new text end

new text begin Bonding authority; additional use of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 3, the city of Excelsior may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may
not exceed $23,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Excelsior,
including the tax authorized under subdivision 1a. 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 bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
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

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 new text begin and subdivision
1a new text end expires at the earlier of: (1) 25 years after the tax is first imposed; or (2) when the city
council determines that deleted text begin $7,000,000 deleted text end new text begin $30,000,000 new text end has been received from the tax to pay for
the cost of the projects authorized under subdivision 2 new text begin and subdivision 2a new text end , plus an amount
sufficient to pay the costs related to issuance of the bonds authorized under subdivision 3 new text begin
and subdivision 3a new text end , including interest on the bonds. Any funds remaining after payment of
all such costs and retirement or redemption of the bonds shall 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end