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HF 1766

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2019 10:42am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; authorizing the city of Blue Earth to impose a local sales and
use tax and issue bonds for specified projects.

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

Section 1. new text begin CITY OF BLUE EARTH; LOCAL 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,
section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters
at the general election of November 6, 2018, the city of Blue Earth may impose by ordinance
a sales and use tax of one-half of one percent for the purposes 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 sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Blue Earth to pay the costs of collecting
and administering the tax and to finance the capital and administrative costs of constructing
and funding sewer plant improvements, street reconstruction projects, and recreational
amenities. The total that may be raised from the tax to pay for these projects is limited to
$5,000,000, plus the costs related to the issuance and paying debt service on bonds for these
projects.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Blue Earth may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $5,000,000, 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
Blue Earth, 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.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Blue Earth, 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

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of : (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $5,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds due to timing of
the termination under Minnesota Statutes, section 297A.99, 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 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 Blue Earth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end