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HF 2334

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to the city of Minneapolis; expanding the use of the city's local sales
tax revenue; amending Laws 1986, chapter 396, section 4, subdivision 3; by
adding a subdivision.

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

Section 1.

Laws 1986, chapter 396, section 4, subdivision 3, is amended to read:


Subd. 3.

Use of property.

Revenues received from the tax may only be used:

(1) to pay costs of collection;

(2) to pay or secure the payment of any principal of, premium or interest on bonds
issued in accordance with this act;

(3) to pay costs to acquire, design, equip, construct, improve, maintain, operate,
administer, or promote the convention center or related facilities, including financing
costs related to them;

(4) to pay reasonable and appropriate costs determined by the city to replace housing
removed from the site; deleted text beginanddeleted text end

(5) to maintain reserves for the foregoing purposes deemed reasonable and
appropriate by the citydeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) to fund city services and projects under subdivision 4.
new text end

deleted text begin In the event of any amendment to chapter 297A enacted subsequent to the effective date
of this act which exempts sales or uses which were taxable under chapter 297A on the
effective date of this act, the city may by ordinance extend the tax authorized hereby to
any such sales or uses provided that the city council shall have determined that such
extension is necessary to provide revenues for the uses to which taxes may be applied
under this section and further provided that, in the estimation of the city council, the
aggregate annual collections following such extension will not exceed the aggregate
annual collections which would have been generated if chapter 297A, as in effect on the
effective date of this act, were then in effect. Any revenue bonds issued in accordance
with this act may, with the consent of the city council, contain a covenant that the tax will
be so extended to the extent necessary to pay principal and interest on the bonds when due.
deleted text end

Money for replacement housing shall be made available by the city only for new
construction, conversion of nonresidential buildings, and for rehabilitation of vacant
residential structures, only if all of the units in the newly constructed building, converted
nonresidential building, or rehabilitated residential structure are to be used for replacement
housing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Laws 1986, chapter 396, section 4, is amended by adding a subdivision to read:


new text begin Subd. 4. new text end

new text begin Minneapolis city services and neighborhood projects. new text end

new text begin (a) For revenues
collected in calendar years 2009 and 2010, to the extent that revenues from the tax
authorized in subdivision 1 exceed the amount needed to fund the purposes in subdivision
3, the city may use the excess revenue to fund any city services. The total amount used in
both years for this purpose may not exceed the total amount of aid and credit reductions
under sections 273.1384 and 477A.011 to 477A.014 in calendar years 2008, 2009, and
2010 due to a governor's unallotment or due to statutory reductions.
new text end

new text begin (b) Beginning with revenues collected in calendar year 2011, to the extent that
revenues from the tax authorized in subdivision 1 exceed the amount needed to fund
the purposes in subdivision 3, the city may use the excess revenue in any year to fund
capital projects to further residential, cultural, commercial, and economic development
in Minneapolis neighborhoods.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance of the governing
body of the city of Minneapolis with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end