HF 3172

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to sales and use taxes; authorizing the city 
  1.3             of Ely to impose a local sales tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF ELY; SALES AND USE TAX.] 
  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, the city of Ely may, by ordinance, impose a sales and 
  1.10  use tax of one percent for the purposes specified in subdivision 
  1.11  2.  The provisions of Minnesota Statutes, section 297A.99, 
  1.12  govern the imposition, administration, collection, and 
  1.13  enforcement of the tax authorized under this subdivision. 
  1.14     Subd. 2.  [USE OF REVENUES.] The proceeds of the tax 
  1.15  imposed under this section shall be used to pay for 
  1.16  infrastructure construction and improvements as needed to 
  1.17  provide economic development and job creation and may include 
  1.18  any of the following: 
  1.19     (1) land acquisition and site development; 
  1.20     (2) improvements authorized under Minnesota Statutes, 
  1.21  section 429.021; 
  1.22     (3) development or redevelopment in the central business 
  1.23  district of the city; 
  1.24     (4) development of a business park; 
  2.1      (5) development of a small business incubator; 
  2.2      (6) development of a technology center; and 
  2.3      (7) improvements to the community center and city hall 
  2.4   needed to bring them into compliance with the Americans with 
  2.5   Disabilities Act. 
  2.6      Authorized expenses include, but are not limited to, 
  2.7   acquiring and clearing property; paying construction, 
  2.8   administrative, and operating expenses related to the 
  2.9   development of the improvements; and paying debt service on 
  2.10  bonds or other obligations, including lease obligations related 
  2.11  to the improvements.  The infrastructure improvements include 
  2.12  compatible, related improvements such as parking, lighting, and 
  2.13  landscaping for the authorized projects.  The total expenses for 
  2.14  all projects authorized under this subdivision that may be paid 
  2.15  by revenues from this tax are limited to $4,000,000 plus an 
  2.16  amount equal to the costs related to the issuance of any bonds 
  2.17  to finance these projects. 
  2.18     Subd. 3.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.19  under Minnesota Statutes, chapter 475, to finance the capital 
  2.20  expenditures and improvements authorized by the referendum under 
  2.21  subdivision 4.  An election to approve the bonds under Minnesota 
  2.22  Statutes, section 475.58, is not required. 
  2.23     (b) The issuance of bonds under this subdivision is not 
  2.24  subject to Minnesota Statutes, section 275.60 or 275.61. 
  2.25     (c) The bonds are not included in computing any debt limits 
  2.26  applicable to the city, and the levy of taxes under Minnesota 
  2.27  Statutes, section 475.61, to pay principal and interest on the 
  2.28  bonds is not subject to levy limits. 
  2.29     (d) The aggregate principal amount of the bonds issued 
  2.30  under this subdivision may not exceed $4,000,000 minus an amount 
  2.31  equal to the direct expenditures for these projects paid from 
  2.32  revenues generated by the tax authorized under this section, but 
  2.33  not including revenues used to pay for interest and other 
  2.34  related costs related to the issuance of the bonds. 
  2.35     Subd. 4.  [REFERENDUM.] If the Ely city council proposes to 
  2.36  impose the tax authorized by this section, the question of 
  3.1   imposing the tax must be submitted to the voters at the next 
  3.2   general election.  Specific projects to be funded with the 
  3.3   proceeds of this tax must be designated at least 90 days before 
  3.4   the referendum needed for imposition of the tax is held, as 
  3.5   required under Minnesota Statutes, section 297A.99, subdivision 
  3.6   3. 
  3.7      Subd. 5.  [TERMINATION OF TAXES.] The tax imposed under 
  3.8   this section expires when the city council first determines that 
  3.9   the amount of revenues raised to pay for the projects under 
  3.10  subdivision 2 shall meet or exceed the sum of $4,000,000 plus 
  3.11  the additional amount needed to pay the costs related to 
  3.12  issuance of bonds under subdivision 3.  Any funds remaining 
  3.13  after completion of the projects may be placed in the general 
  3.14  funds of the city.  The city may rescind the tax imposed under 
  3.15  this section at an earlier time by ordinance. 
  3.16     [EFFECTIVE DATE.] This section is effective the day after 
  3.17  compliance with the governing body of the city of Ely with 
  3.18  Minnesota Statutes, section 645.021, subdivision 3.