HF 3546

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to financing of capital improvements; 
  1.3             authorizing spending to acquire and to better public 
  1.4             land and buildings and other public improvements of a 
  1.5             capital nature; to finance operating deficits should 
  1.6             they occur; authorizing local option taxes for the 
  1.7             purpose of funding the Central Minnesota Events Center 
  1.8             and related uses; authorizing issuance of bonds; 
  1.9             appropriating money.  
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [LOCAL OPTION TAXES.] 
  1.12     Subdivision 1.  [SALES AND USE TAX 
  1.13  AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  1.14  477A.016, or any other provision of law, ordinance, or city 
  1.15  charter, the cities of St. Cloud, Sauk Rapids, Sartell, Waite 
  1.16  Park, and St. Joseph may impose by ordinance a sales and use tax 
  1.17  of up to one percent for the purposes specified in subdivision 
  1.18  5.  The provisions of Minnesota Statutes, section 297A.48, 
  1.19  govern the imposition, administration, collection, and 
  1.20  enforcement of the taxes authorized under this subdivision. 
  1.21     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.22  Minnesota Statutes, section 477A.016, or any other provision of 
  1.23  law, ordinance, or city charter, the cities identified in 
  1.24  subdivision 1 may impose by ordinance, for the purposes 
  1.25  specified in subdivision 5, an excise tax of up to $20 per motor 
  1.26  vehicle acquired from any person engaged within the city in the 
  1.27  business of selling motor vehicles at retail. 
  2.1      Subd. 3.  [FOOD AND BEVERAGE TAX 
  2.2   AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  2.3   477A.016, or any other provision of law, ordinance, or city 
  2.4   charter, the cities identified in subdivision 1 may impose by 
  2.5   ordinance, for the purposes specified in subdivision 5, a tax of 
  2.6   up to one percent on the gross receipts from the on-sales of 
  2.7   intoxicating liquor and fermented malt beverages and the sale of 
  2.8   food and beverages sold at restaurants and places of refreshment 
  2.9   within the city.  The city shall define "restaurant" and "place 
  2.10  of refreshment" as part of the ordinance. 
  2.11     Subd. 4.  [LODGING TAX AUTHORIZED.] Notwithstanding 
  2.12  Minnesota Statutes, section 477A.016, or any other provision of 
  2.13  law, ordinance, or city charter, the cities identified in 
  2.14  subdivision 1 may impose by ordinance, for the purposes 
  2.15  specified in subdivision 5, a tax of up to one percent on the 
  2.16  gross receipts from the furnishing for a consideration of 
  2.17  lodging and related services by a hotel, rooming house, tourist 
  2.18  court, motel, or trailer camp, other than the renting or leasing 
  2.19  of it for a continuous period of 30 days or more.  This tax is 
  2.20  in addition to the tax authorized in Minnesota Statutes, section 
  2.21  469.190, and is not included in calculating the tax rate subject 
  2.22  to the limit imposed on transit lodging taxes in Minnesota 
  2.23  Statutes, section 469.190, subdivision 2. 
  2.24     Subd. 5.  [USE OF REVENUES.] (a) Revenues received from the 
  2.25  taxes authorized by subdivisions 1 to 4 must be used to pay for 
  2.26  the cost of collecting the taxes; to pay all or part of the 
  2.27  capital or administrative cost of the acquisition, construction, 
  2.28  and improvement of the Central Minnesota Events Center and 
  2.29  related on-site and off-site improvements; and to pay for the 
  2.30  operating deficit, if any, in the first five years of operation 
  2.31  of the facility.  Authorized expenses related to acquisition, 
  2.32  construction, and improvement of the center include, but are not 
  2.33  limited to, acquiring property, paying construction and 
  2.34  operating expenses related to the development of the facility, 
  2.35  and securing and paying debt service on bonds or other 
  2.36  obligations issued to finance construction or improvement of the 
  3.1   authorized facility. 
  3.2      (b) In addition, if revenues collected from a tax imposed 
  3.3   in subdivisions 1 to 4 is greater than the amount needed to meet 
  3.4   obligations under paragraph (a) in any year, the surplus may be 
  3.5   used by the city imposing the tax for the acquisition and 
  3.6   improvement of park land and open space; for the purchase, 
  3.7   renovation, and construction of public buildings and land 
  3.8   primarily used for the arts, libraries, and community centers; 
  3.9   and for debt service on bonds issued for these purposes.  The 
  3.10  amount of surplus revenues raised by a tax will be determined 
  3.11  either as provided for by an applicable joint powers agreement 
  3.12  or by a governing entity in charge of administering the project 
  3.13  in paragraph (a). 
  3.14     Subd. 6.  [BONDS.] The cities named in subdivision 1 may 
  3.15  issue bonds in each city in an aggregate amount needed to pay 
  3.16  capital and administrative expenses for the acquisition, 
  3.17  construction, and improvement of the Central Minnesota Events 
  3.18  Center.  The debt represented by the bonds must not be included 
  3.19  in computing any debt limitation applicable to the city and the 
  3.20  levy of taxes required by Minnesota Statutes, section 475.61, to 
  3.21  pay the principal of and interest on the bonds must not be 
  3.22  subject to any levy limitation or be included in computing or 
  3.23  applying any levy limitation applicable to the city. 
  3.24     Subd. 7.  [TERMINATION OF TAXES.] The taxes imposed by each 
  3.25  city under subdivisions 1 to 4 expire when sufficient funds have 
  3.26  been received from the taxes to finance the obligations under 
  3.27  subdivision (5), paragraph (a), and to prepay or retire at 
  3.28  maturity the principal, interest, and premium due on the 
  3.29  original bonds issued for the initial acquisition, construction, 
  3.30  and improvement of the Central Minnesota Events Center as 
  3.31  determined under an applicable joint powers agreement or by a 
  3.32  governing entity in charge of administering the project.  Any 
  3.33  funds remaining after completion of the project and retirement 
  3.34  or redemption of the bonds may be placed in the general funds of 
  3.35  the cities imposing the taxes.  The taxes imposed by a city 
  3.36  under this section may expire at an earlier time by city 
  4.1   ordinance, if authorized under the applicable joint powers 
  4.2   agreement or by the governing entity in charge of administering 
  4.3   the project. 
  4.4      Subd. 8.  [REFERENDUM.] (a) If a governing body of any of 
  4.5   the cities listed in subdivision 1 intends to impose any tax 
  4.6   authorized under subdivisions 1 to 4, it shall conduct a 
  4.7   referendum on the issue.  The question of imposition of the tax 
  4.8   must be submitted to the voters at a general election, and the 
  4.9   tax may not be imposed unless a majority of votes cast on the 
  4.10  question are in the affirmative.  The commissioner of revenue 
  4.11  shall prepare a suggested form of question to be presented at 
  4.12  the election. 
  4.13     (b) If the cities that pass a referendum required under 
  4.14  paragraph (a) determine that the revenues raised from the sum of 
  4.15  all the taxes authorized by referendum under this subdivision 
  4.16  will not be sufficient to fund the project in subdivision 5, 
  4.17  paragraph (a), none of the authorized taxes may be imposed. 
  4.18     Subd. 9.  [COLLECTION.] The commissioner of revenue may 
  4.19  enter into appropriate agreements with any city listed in 
  4.20  subdivision 1 to collect, on behalf of the city, a tax imposed 
  4.21  under subdivisions 2 to 4.  The commissioner shall charge the 
  4.22  city from the proceeds of any tax a reasonable fee for its 
  4.23  collection. 
  4.24     Sec. 2.  [APPROPRIATION.] 
  4.25     $....... is appropriated from the bond proceeds fund to the 
  4.26  Amateur Sports Commission to design, construct, furnish, and 
  4.27  equip the Central Minnesota Events Center, subject to the 
  4.28  requirements of Minnesota Statutes, section 16A.695.  
  4.29     This appropriation is not available if the site selected 
  4.30  for the Central Minnesota Events Center is within one-half mile 
  4.31  of the Mississippi River.  
  4.32     This appropriation is not available until the commission 
  4.33  has determined that at least $25,000,000 has been committed from 
  4.34  nonstate sources for construction of the center. 
  4.35     Sec. 3.  [BOND SALE.] 
  4.36     To provide the money appropriated in section 2 from the 
  5.1   bond proceeds fund, the commissioner of finance, on request of 
  5.2   the governor, shall sell and issue bonds of the state in an 
  5.3   amount up to $....... in the manner, on the terms, and with the 
  5.4   effect prescribed by Minnesota Statutes, sections 16A.631 to 
  5.5   16A.675, and by the Minnesota Constitution, article XI, sections 
  5.6   4 to 7. 
  5.7      Sec. 4.  [EFFECTIVE DATE.] 
  5.8      Section 1 is effective August 1, 1998, with respect to any 
  5.9   city listed in subdivision 1 upon compliance of the governing 
  5.10  body of that city with Minnesota Statutes, section 645.021, 
  5.11  subdivision 3.  
  5.12     Sections 2 and 3 are effective the day following final 
  5.13  enactment.