HF 187

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/19/2021 03:30pm

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

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

Section 1. new text begin CITY OF OAKDALE; 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 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 Oakdale 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 Oakdale to pay the costs of collecting and
administering the tax and paying for the following projects in the city, 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) $15,000,000 plus associated bonding costs for construction of a new public works
facility; and
new text end

new text begin (2) $12,000,000 plus associated bonding costs for expansion of the police department
facility.
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 Oakdale 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: (1) $15,000,000 for the project listed in subdivision 2, clause (1), plus an amount
applied to the payment of costs of issuing the bonds; and (2) $12,000,000 for the projects
listed in subdivision 2, clause (2), 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
Oakdale, 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.
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. 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) 20 years after the tax is first imposed; or (2) when the city council determines
that the city has received from this tax $27,000,000 to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Except as otherwise provided under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), 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 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 Oakdale and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end