HF 3122

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of North Mankato; allowing the city to impose a local sales
and use tax.

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

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

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. 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 pursuant to Minnesota Statutes, section 297A.99, the city of North Mankato
may impose by ordinance a sales and use tax of one-half of one percent for the purposes
specified in subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern
the imposition, administration, collection, and enforcement of the taxes authorized under
this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the tax authorized by
subdivision 1 must be used to pay all or part of the capital costs of the following projects:
new text end

new text begin (1) the local share of the marked Trunk Highway 14/County State-Aid Highway 41
interchange project;
new text end

new text begin (2) development of regional parks and hiking and biking trails;
new text end

new text begin (3) expansion of the North Mankato Taylor Library;
new text end

new text begin (4) redevelopment of the city's central business district; and
new text end

new text begin (5) lake improvement projects.
new text end

new text begin The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $6,000,000 plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonds. new text end

new text begin (a) The city of North Mankato, if approved by voters pursuant to
Minnesota Statutes, section 297A.99, may issue bonds under Minnesota Statutes, chapter
475, to pay capital and administrative expenses for the projects described in subdivision 2,
in an amount that does not exceed $6,000,000. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The debt represented by the bonds is not included in computing any debt
limitation applicable to the city, 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.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
later of (1) 15 years, or (2) when the city council determines that the amount of revenues
received from the taxes to pay for the projects under subdivision 2 first equals or exceeds
the amount authorized to be spent for each project plus the additional amount needed to
pay the costs related to issuance of the bonds under subdivision 3, including interest
on the bonds. Any funds remaining after completion of the projects and retirement or
redemption of the bonds shall be placed in a capital facilities and equipment replacement
fund of the city. The tax imposed under section 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 North Mankato with Minnesota Statutes, section 645.021,
subdivision 3.
new text end