HF 3311

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

A bill for an act
relating to the city of Pequot Lakes; 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 PEQUOT LAKES; 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, the city of
Pequot Lakes may impose, by ordinance, a sales and use tax of one-half of one percent for
the purposes specified in subdivision 2 if:
new text end

new text begin (1) the tax is approved by the voters pursuant to Minnesota Statutes, section
297A.99; and
new text end

new text begin (2) the cities of Brainerd, Baxter, and Nisswa also share the costs of the
improvements specified in subdivision 2.
new text end

new text begin 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 city's share of the
marked Trunk Highway 371 north improvement project.
new text end

new text begin The total amount of revenues from the tax in subdivision 1 that may be used to fund
this project is $5,000,000 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) If approved by voters pursuant to Minnesota Statutes, section
297A.99, the city of Pequot Lakes 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 $5,000,000. 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 when
the city council determines that the amount of revenues received from the taxes to pay for
the project under subdivision 2, first equals or exceeds the amount authorized to be spent
for the 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 must be placed in
the general fund of the city. The tax imposed under this section 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 Pequot Lakes with Minnesota Statutes, section 645.021,
subdivision 3.
new text end