HF 2449

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:13pm

A bill for an act
relating to local taxes; authorizing the city of St. Paul to impose a new sales and
use tax; amending Laws 1993, chapter 375, article 9, section 46, as amended.

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

Section 1.

Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter
231, article 7, section 40, Laws 1998, chapter 389, article 8, section 30, Laws 1998, chapter
389, article 8, section 31, Laws 1998, chapter 389, article 8, section 32, Laws 2003, First
Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session chapter
3, article 5, section 26, Laws 2005, First Special Session chapter 3, article 5, section 27,
Laws 2009, chapter 88, article 4, section 15, Laws 2009, chapter 88, article 4, section 16,
Laws 2013, chapter 143, article 8, section 44, and Laws 2013, chapter 143, article 8, section
45, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 2, or 477A.016, or any other law, 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 St. Paul may impose by ordinance a sales and use tax
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.
The tax imposed under this subdivision is in addition to any other local sales and use tax
imposed by the city of St. Paul under any other special law.
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 St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 2.

Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by Laws
1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 30, Laws
2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session
chapter 3, article 5, section 26, Laws 2009, chapter 88, article 4, section 15, Laws 2009,
chapter 88, article 4, section 16, and Laws 2013, chapter 143, article 8, section 44, is amended
by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Use of revenues. new text end

new text begin The revenues derived from the tax authorized under
subdivision 1a must be used by the city of St. Paul to pay the costs of collecting and
administering the tax and to finance all or part of the following projects in the city, including
securing and paying debt service on bonds issued under subdivision 3a:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$738,000,000, plus associated bonding costs for street improvements; and
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$246,000,000, plus associated bonding costs for capital improvements to St. Paul parks and
recreation facilities.
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 St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 3.

Laws 1993, chapter 375, article 9, section 46, subdivision 3, as amended by Laws
1998, chapter 389, article 8, section 31, Laws 2005, First Special Session chapter 3, article
5, section 27, and Laws 2009, chapter 88, article 4, section 16, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of St. Paul may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2b and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $984,000,000 for the projects listed in subdivision
2b, plus an amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of St. Paul,
including the tax authorized under subdivision 1a. 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 (c) The bonds are not included in computing any debt limitation applicable to the city
of St. Paul, 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 EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 4.

Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws
1998, chapter 389, article 8, section 32, and Laws 2013, chapter 143, article 8, section 45,
is amended to read:

Subd. 5.

Expiration of taxing authority.

new text begin (a) new text end The authority granted by subdivision 1 to
the city to impose a sales tax shall expire on December 31, 2042, or at an earlier time as the
city shall, by ordinance, determine. Any funds remaining after completion of projects
approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or
other obligations may be placed in the general fund of the city.

new text begin (b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the
tax is first imposed, or (2) when the city council determines that the amount of revenues
received from the tax is sufficient to pay for the project costs authorized under subdivision
2b for projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a 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 St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end