HF 3617

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 01:17pm

A bill for an act
relating to taxation; local sales and use; authorizing the city of Breckenridge 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 BRECKENRIDGE; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Breckenridge may impose by ordinance a sales
and use tax 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 Breckenridge to pay the costs of collecting
and administering the tax and paying up to $1,800,000 for the city's share of construction
of the Three Rivers Activity Complex, plus an amount needed for securing and paying debt
service on bonds issued to finance the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Breckenridge may issue bonds under
Minnesota Statutes, chapter 475, to finance the city's share of the costs of the facility
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $1,800,000 for the project listed in subdivision 2, 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 Breckenridge, 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 (b) The bonds are not included in computing any debt limitation applicable to the city
of Breckenridge, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 12 years
after the tax is imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the $1,800,000 in project costs authorized under
subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, 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 the governing body of the
city of Breckenridge and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end