HF 2093

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Clearwater; authorizing the city to impose a sales and
use tax.

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

Section 1. new text begin CITY OF CLEARWATER; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the
voters under Minnesota Statutes, section 297A.99, the city of Clearwater may impose
by ordinance a sales and use tax of up to 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 Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater
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 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 revenues. new text end

new text begin The proceeds of the tax imposed under this section shall
be used to pay for the costs of acquisition, construction, improvement, and development
of regional parks, bicycle trails, park land, pedestrian walkways, open space, and land and
buildings for a community and recreation center.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin The city of Clearwater may issue bonds in an amount
not to exceed $15,000,000 under Minnesota Statutes, chapter 475, to finance the capital
expenditures and improvements authorized by the referendum under subdivision 3. An
election to approve the bonds under Minnesota Statutes, section 475.59, is not required.
The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section
275.60 or 275.61. The debt represented by the bonds must not be included in computing
any debt limitations applicable to the city, and the levy of taxes required by Minnesota
Statutes, section 475.61, to pay the principal or any interest on the bonds must not be
subject to any levy limitation.
new text end

new text begin Subd. 5. new text end

new text begin Termination of tax. new text end

new text begin The tax authorized under subdivision 1 terminates at
the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the
city council determines that sufficient funds have been raised from the tax to finance the
capital and administrative costs of the improvements described in subdivision 3, plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
4, including interest on the bonds. Any funds remaining after completion of the projects
specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may
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 compliance by the
governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end