HF 3767

as introduced - 86th Legislature (2009 - 2010) Posted on 04/07/2010 11:04am

A bill for an act
relating to taxation; authorizing the city of Ely to impose a sales and use tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF ELY; SALES AND USE TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, or at a
special election held for this purpose, the city of Ely may impose by ordinance a sales
and use tax of up to one percent for the purposes specified in subdivision 2. Except as
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 revenues. new text end

new text begin Revenues received from the taxes authorized by
subdivision 1 must be used by the city to pay the cost of collecting the taxes and to pay
for the following projects:
new text end

new text begin (1) maintenance and improvements of city-owned property related to compliance
with the Americans with Disabilities Act;
new text end

new text begin (2) maintenance and improvements of city-owned property to increase energy
efficiency; and
new text end

new text begin (3) maintenance and improvements to city infrastructure.
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 may issue bonds under Minnesota
Statutes, chapter 475, to pay capital and administrative expenses for the improvements
described in subdivision 2 in an amount that does not exceed $15,000,000. An election to
approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) 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 (c) 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 of 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 Expiration of taxing authority. new text end

new text begin The taxes authorized under subdivision
1 expire at the earlier of: (1) 30 years; or (2) when the governing body of the city
determines that sufficient revenues have been raised to finance the projects in subdivision
2, including the amount to prepay to retire at maturity the principal, interest, and premium
due on any bonds issued for the projects. Any funds remaining after completion of the
project and retirement or redemption of the bonds may be placed in the general fund
of the city. The taxes 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 Ely and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end