HF 3343

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Ely; authorizing a sales and 
  1.3             use tax; authorizing expenditures and bonding 
  1.4             authority. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF ELY; TAXES AUTHORIZED.] 
  1.7      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.8   Minnesota Statutes, section 297A.99, subdivision 3; 477A.016; or 
  1.9   any other provision of law, ordinance, or city charter, if 
  1.10  approved by the city voters at the first municipal general or 
  1.11  special election held after the date of final enactment of this 
  1.12  act, the city of Ely may impose by ordinance a sales and use tax 
  1.13  of up to one percent for the purposes specified in subdivision 
  1.14  2.  Except as otherwise provided in this section, the provisions 
  1.15  of Minnesota Statutes, section 297A.99, govern the imposition, 
  1.16  administration, collection, and enforcement of the tax 
  1.17  authorized under this subdivision. 
  1.18     Subd. 2.  [USE OF REVENUES.] Revenues received from taxes 
  1.19  authorized by subdivision 1 must be used by the city to pay the 
  1.20  cost of collecting and administering the taxes and to pay all or 
  1.21  part of the capital and administrative costs of acquiring, 
  1.22  constructing, furnishing, equipping, expanding, improving, and 
  1.23  developing city facilities, which the city council finds, by 
  1.24  resolution, are related to economic development or job creation, 
  1.25  including, but not limited to, the following: 
  2.1      (1) land acquisition and site development; 
  2.2      (2) installation of improvements authorized by Minnesota 
  2.3   Statutes, chapter 429; 
  2.4      (3) development or redevelopment activities in the central 
  2.5   business district of the city; 
  2.6      (4) business park development; 
  2.7      (5) development of a small business incubator; 
  2.8      (6) development of a technology center; or 
  2.9      (7) Americans With Disabilities Act compliance improvements 
  2.10  to the Ely community center and city hall. 
  2.11  Authorized expenses include, but are not limited to, acquiring 
  2.12  and clearing property; paying construction, administrative, and 
  2.13  operating expenses related to the development of the facilities 
  2.14  listed herein; and paying debt service on bonds or other 
  2.15  obligations, including lease obligations, issued to finance the 
  2.16  activities listed herein and other compatible and related 
  2.17  activities, including, but not limited to, parking, lighting, 
  2.18  and landscaping improvements.  The capital expenses for all 
  2.19  projects authorized under this paragraph that may be paid with 
  2.20  these taxes are limited to $4,000,000 plus an amount equal to 
  2.21  the costs related to issuance of the bonds. 
  2.22     Subd. 3.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.23  under Minnesota Statutes, chapter 475, to finance the capital 
  2.24  expenditure and improvement projects described in subdivision 
  2.25  2.  An election to approve the bonds under Minnesota Statutes, 
  2.26  section 475.58, is not required. 
  2.27     (b) The issuance of bonds under this subdivision is not 
  2.28  subject to Minnesota Statutes, section 275.60 or 275.61. 
  2.29     (c) The bonds are not included in computing any debt 
  2.30  limitation applicable to the city, and the levy of taxes under 
  2.31  Minnesota Statutes, section 475.61, to pay principal of and 
  2.32  interest on the bonds is not subject to any levy limitation. 
  2.33     (d) The aggregate principal amount of bonds plus the 
  2.34  aggregate of the taxes used directly to pay eligible capital 
  2.35  expenditures and improvements may not exceed $4,000,000 plus an 
  2.36  amount equal to the costs related to issuance of the bonds, 
  3.1   including interest on the bonds. 
  3.2      (e) The taxes may be pledged to and used for the payment of 
  3.3   the bonds, and any bonds issued to refund them, only if the 
  3.4   bonds and any refunding bonds are general obligations of the 
  3.5   city. 
  3.6      Subd. 4.  [TERMINATION OF TAXES.] The taxes imposed under 
  3.7   subdivision 1 expire when the city council determines that the 
  3.8   amount described in subdivision 3, paragraph (d), has been 
  3.9   received from the taxes to finance the activities described in 
  3.10  subdivision 2 plus the additional amount needed to pay the costs 
  3.11  related to issuance of bonds under subdivision 3.  Any funds 
  3.12  remaining after completion of the activities described in 
  3.13  subdivision 3 and retirement or redemption of the bonds may be 
  3.14  placed in the general fund of the city.  The taxes imposed under 
  3.15  subdivisions 1 and 2 may expire at an earlier time if the city 
  3.16  so determines by ordinance. 
  3.17     Subd. 5.  [LOCAL APPROVAL; EFFECTIVE DATE.] This section is 
  3.18  effective the day following final enactment, upon compliance 
  3.19  with Minnesota Statutes, section 645.021, subdivision 3, by the 
  3.20  city of Ely.