HF 2111

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; allowing the city of Proctor to 
  1.3             impose a local sales tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF PROCTOR; TAXES AUTHORIZED.] 
  1.6      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.7   Minnesota Statutes, section 477A.016, or any other provision of 
  1.8   law, ordinance, or city charter, if approved by the city voters 
  1.9   at the first municipal general election or at a municipal 
  1.10  special election that is held after the date of final enactment 
  1.11  of this act, the city of Proctor may impose by ordinance a sales 
  1.12  and use tax of up to one-half of one percent for the purposes 
  1.13  specified in subdivision 3.  The provisions of Minnesota 
  1.14  Statutes, section 297A.48, govern the imposition, 
  1.15  administration, collection, and enforcement of the tax 
  1.16  authorized under this subdivision. 
  1.17     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.18  Minnesota Statutes, section 477A.016, or any other provision of 
  1.19  law, ordinance, or city charter, the city of Proctor may impose 
  1.20  by ordinance, for the purposes specified in subdivision 3, an 
  1.21  excise tax of up to $20 per motor vehicle, as defined by 
  1.22  ordinance, purchased or acquired from any person engaged within 
  1.23  the city in the business of selling motor vehicles at retail. 
  1.24     Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  2.1   authorized by subdivisions 1 and 2 must be used by the city to 
  2.2   pay the cost of collecting the taxes and to pay for construction 
  2.3   and improvement of the following city facilities: 
  2.4      (1) streets and sidewalks; 
  2.5      (2) bikeways, including providing matching funds for 
  2.6   trails; and 
  2.7      (3) constructing and equipping the Proctor community 
  2.8   activity center. 
  2.9      Authorized expenses include, but are not limited to, 
  2.10  acquiring property, paying construction and operating expenses 
  2.11  related to the development of an authorized facility, and paying 
  2.12  debt service on bonds or other obligations, including lease 
  2.13  obligations, issued to finance the construction, expansion, or 
  2.14  improvement of an authorized facility.  The capital expenses for 
  2.15  all projects authorized under this paragraph that may be paid 
  2.16  with these taxes is limited to $3,600,000, plus an amount equal 
  2.17  to the costs related to issuance of the bonds. 
  2.18     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.19  under Minnesota Statutes, chapter 475, to finance the capital 
  2.20  expenditure and improvement projects described in subdivision 
  2.21  3.  An election to approve the bonds under Minnesota Statutes, 
  2.22  section 475.58, is not required. 
  2.23     (b) The issuance of bonds under this subdivision is not 
  2.24  subject to Minnesota Statutes, sections 275.60 and 279.61. 
  2.25     (c) The bonds are not included in computing any debt 
  2.26  limitation applicable to the city, and the levy of taxes under 
  2.27  Minnesota Statutes, section 475.61, to pay principal of and 
  2.28  interest on the bonds is not subject to any levy limitation.  
  2.29     (d) The aggregate principal amount of bonds, plus the 
  2.30  aggregate of the taxes used directly to pay eligible capital 
  2.31  expenditures and improvements, may not exceed $3,600,000, plus 
  2.32  an amount equal to the costs related to issuance of the bonds, 
  2.33  including interest on the bonds. 
  2.34     (e) The sales and use and excise taxes authorized in this 
  2.35  section may be pledged to and used for the payment of the bonds 
  2.36  and any bonds issued to refund them only if the bonds and any 
  3.1   refunding bonds are general obligations of the city. 
  3.2      Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  3.3   subdivisions 1 and 2 expire when the city council determines 
  3.4   that the amount described in subdivision 4, paragraph (d), has 
  3.5   been received from the taxes to finance the capital and 
  3.6   administrative costs for the acquisition, construction, 
  3.7   expansion, and improvement of facilities described in 
  3.8   subdivision 3, plus the additional amount needed to pay the 
  3.9   costs related to issuance of bonds under subdivision 4.  Any 
  3.10  funds remaining after completion of the project and retirement 
  3.11  or redemption of the bonds may be placed in the general fund of 
  3.12  the city.  The taxes imposed under subdivisions 1 and 2 may 
  3.13  expire at an earlier time if the city so determines by ordinance.
  3.14     Subd. 6.  [EFFECTIVE DATE.] This section is effective the 
  3.15  day after compliance by the governing body of the city of 
  3.16  Proctor with Minnesota Statutes, section 645.021, subdivision 3.