HF 3307

as introduced - 88th Legislature (2013 - 2014) Posted on 03/27/2014 02:22pm

A bill for an act
relating to taxation; authorizing the city of Isle 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 ISLE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

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

new text begin Notwithstanding Minnesota
Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
or city charter, as approved by the voters at the next general election, the city of Isle may
impose, by ordinance, a sales and use tax of up to one-half 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.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the
tax authorized under subdivision 1 must be used by the city of Isle to pay the costs of
collecting and administering the tax and to finance the costs of: (1) improvements to the
city's park system of benefit to regional residents and to regional tourism; (2) street and
related infrastructure improvements; (3) municipal building improvements; (4) airport
improvements; (5) bridge replacement; and (6) utility systems improvements. Authorized
costs include construction and engineering costs and associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Isle may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Isle, including the tax authorized under subdivision 1. 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 The bonds are not included in computing any debt limitation applicable to the city of
Isle, 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 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 earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
determines that $3,000,000 has been received from the tax to pay for the cost of the
projects authorized under subdivision 2, plus an amount sufficient to pay the costs related
to issuance of the bonds authorized under subdivision 3, including interest on the bonds.
Any funds remaining after payment of all such costs and retirement or redemption of the
bonds shall be placed in the general fund of the city. The tax imposed under subdivision 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 Isle with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end