HF 3965

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; authorizing the city of Ely 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 ELY; SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, if approved by
the voters pursuant to Minnesota Statutes, section 297A.99, the city of Ely 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 revenues. new text end

new text begin The proceeds of the tax imposed under this section
must be used by the city of Ely to pay the costs of collecting and administering the tax
and to pay the following costs:
new text end

new text begin (1) installation of improvements authorized by Minnesota Statutes, chapter 429;
new text end

new text begin (2) development or redevelopment activities in the central business district of the
city;
new text end

new text begin (3) business park development;
new text end

new text begin (4) development of a small business incubator;
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new text begin (5) development of a technology center; and
new text end

new text begin (6) improvements to the Ely Community Center and City Hall to comply with the
Americans with Disabilities Act.
new text end

new text begin Authorized expenses include, but are not limited to, land acquisition, site development,
and payment of construction expenses and debt service on bonds or other obligations
issued to finance acquisition and construction of the improvements.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) If the tax authorized under subdivision 1 is
approved by the voters, the city of Ely may issue bonds under Minnesota Statutes,
chapter 475, to pay the capital and administrative expenses for the improvement projects
authorized under subdivision 2. The total amount of bonds issued for the projects listed in
subdivision 2 may not exceed $6,000,000 in aggregate. An election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The debt represented by the bonds is not included in computing any debt
limitation applicable to the city of Ely, and the levy of taxes under Minnesota Statutes,
section 475.61, to pay the 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 Termination of tax. new text end

new text begin The tax authorized under this section expires at
the earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Ely
City Council determines that the amount of revenues received from the tax equals or
exceeds the sum of $6,000,000, plus an amount equal to the costs related to the issuance of
bonds under subdivision 3, including interest on the bonds. Any funds remaining after
completion of the projects and retirement or redemption of the bonds may 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 compliance by the
governing body of the city of Ely with Minnesota Statutes, section 645.021, subdivision 3.
new text end