HF 3776

as introduced - 91st Legislature (2019 - 2020) Posted on 02/26/2020 02:40pm

A bill for an act
relating to taxation; local sales and use; authorizing the city of Waite Park 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 WAITE PARK; 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, the city of Waite Park may impose by
ordinance a sales and use tax of one-half 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. The tax imposed under this subdivision is in
addition to any local sales and use tax imposed under any other special law.
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 Waite Park to pay the costs of collecting
and administering the tax and for the following projects in the city, including securing and
paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) up to $15,500,000 plus associated bonding costs for the 10th Avenue regional corridor
project;
new text end

new text begin (2) up to $10,000,000 plus associated bonding costs for regional trail connections;
new text end

new text begin (3) up to $10,000,000 plus associated bonding costs for the Southside Regional Park
development; and
new text end

new text begin (4) up to $12,000,000 plus associated bonding costs for construction and equipping of
a public safety facility.
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 Waite Park may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $15,500,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds;
new text end

new text begin (2) $10,000,000 for the project listed in subdivision 2, clause (2), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds;
new text end

new text begin (3) $10,000,000 for the project listed in subdivision 2, clause (3), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and
new text end

new text begin (4) $12,000,000 for the project listed in subdivision 2, clause (4), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Waite Park,
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 Waite Park, 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) 25 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), 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 Waite Park and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end