HF 2518

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Fergus Falls; authorizing the 
  1.3             city to impose certain taxes. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF FERGUS FALLS.] 
  1.6      Subdivision 1.  [SALES AND USE TAX 
  1.7   AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  1.8   477A.016, or any other provision of law, ordinance, or city 
  1.9   charter, if approved by the city voters at the next general 
  1.10  election after final enactment of this act, the city of Fergus 
  1.11  Falls may impose by ordinance a sales and use tax of up to 
  1.12  one-half of one percent for the purposes specified in 
  1.13  subdivision 3.  The provisions of Minnesota Statutes, section 
  1.14  297A.48, govern the imposition, administration, collection, and 
  1.15  enforcement of the tax authorized under this subdivision, except 
  1.16  that the sales and use tax shall not apply to farm machinery. 
  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, if a sales and use tax is 
  1.20  imposed under subdivision 1, the city of Fergus Falls may impose 
  1.21  by ordinance, for the purposes specified in subdivision 3, an 
  1.22  excise tax of up to $20 per motor vehicle, as defined by 
  1.23  ordinance, purchased or acquired from any person engaged within 
  1.24  the city in the business of selling motor vehicles at retail. 
  2.1      Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  2.2   authorized by subdivisions 1 and 2 must be used by the city to 
  2.3   pay the costs of collecting the taxes and to pay all or part of 
  2.4   the capital and administrative costs of constructing and 
  2.5   operating facilities as part of a regional conference center, 
  2.6   community center, recreational and tourism project in Fergus 
  2.7   Falls known as Project Reach Out.  Authorized expenses include, 
  2.8   but are not limited to, acquiring property and paying 
  2.9   construction and operating expenses related to the development 
  2.10  of Project Reach Out and related facilities, and securing or 
  2.11  paying debt service on bonds or other obligations issued to 
  2.12  finance the construction of Project Reach Out and related 
  2.13  facilities. 
  2.14     For purposes of this section, "Project Reach Out and 
  2.15  related facilities" means a regional conference center, 
  2.16  community center, regional park and recreational facilities, and 
  2.17  all publicly owned real or personal property that the governing 
  2.18  body of the city determines are necessary to facilitate the use 
  2.19  of these facilities, including but not limited to, parking, 
  2.20  pedestrian bridges, lighting, and landscaping. 
  2.21     Subd. 4.  [BONDS.] If approved by the city voters at the 
  2.22  next general election after final enactment of this act, the 
  2.23  city of Fergus Falls may issue without additional election 
  2.24  general obligation bonds of the city in an amount necessary to 
  2.25  pay capital and administrative expenses for the acquisition, 
  2.26  construction, improvement, and maintenance of Project Reach Out 
  2.27  and related facilities.  The debt represented by the bonds must 
  2.28  not be included in computing any debt limitations applicable to 
  2.29  the city, and the levy of taxes required by Minnesota Statutes, 
  2.30  section 475.61, to pay the principal or any interest on the 
  2.31  bonds must not be subject to any levy limitation or be included 
  2.32  in computing or applying any levy limitation applicable to the 
  2.33  city. 
  2.34     Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  2.35  subdivisions 1 and 2 expire at the end of 15 years beginning 
  2.36  with the date the tax is imposed, unless the city determines 
  3.1   that insufficient funds have been received from the taxes to 
  3.2   finance the capital and administrative costs for acquisition, 
  3.3   construction, improvement, and operation of Project Reach Out 
  3.4   and related facilities and to prepay or retire at maturity the 
  3.5   principal, interest, and premium due on any bonds issued for the 
  3.6   project under subdivision 4.  If the city council determines 
  3.7   that the funds are not sufficient, it may extend the tax by 
  3.8   ordinance, subject to the provisions of Minnesota Statutes, 
  3.9   section 297A.48, subdivision 9.  The tax may be extended for the 
  3.10  period of time the city council determines is necessary to 
  3.11  finance the capital and administrative costs of the project and 
  3.12  to prepay or retire at maturity the principal, interest, and 
  3.13  premium due on any bonds issued for the project under 
  3.14  subdivision 4.  Any funds remaining after completion of the 
  3.15  project and retirement or redemption of the bonds may be placed 
  3.16  in the general fund of the city.  The taxes imposed under 
  3.17  subdivisions 1 and 2 may expire at an earlier time if the city 
  3.18  so determines by ordinance. 
  3.19     Sec. 2.  [EFFECTIVE DATE.] 
  3.20     Section 1 is effective the day after compliance by the 
  3.21  governing body of the city of Fergus Falls with Minnesota 
  3.22  Statutes, section 645.021, subdivision 3.