HF 4028

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the imposition of a 
  1.3             sales and use tax and an excise tax and the issuance 
  1.4             of bonds by the city of Buffalo to finance the 
  1.5             acquisition and betterment of a health and education 
  1.6             center. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [CITY OF BUFFALO; TAXES AUTHORIZED.] 
  1.9      Subdivision 1.  [SALES AND USE TAX 
  1.10  AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  1.11  477A.016, or any other provision of law, ordinance, or city 
  1.12  charter, if approved by the city voters at a general election 
  1.13  held within two years of the date of final enactment of this 
  1.14  act, the city of Buffalo may impose by ordinance a sales and use 
  1.15  tax of up to one-half of one percent for the purposes specified 
  1.16  in subdivision 3.  Except as otherwise provided in this section, 
  1.17  the provisions of Minnesota Statutes, section 297A.48, govern 
  1.18  the imposition, administration, collection, and enforcement of 
  1.19  the tax authorized under this subdivision. 
  1.20     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.21  Minnesota Statutes, section 477A.016, or any other contrary 
  1.22  provision of law, ordinance, or city charter, the city of 
  1.23  Buffalo may impose by ordinance, for the purposes specified in 
  1.24  subdivision 3, an excise tax of up to $20 per motor vehicle, as 
  1.25  defined by ordinance, purchased or acquired from any person 
  1.26  engaged within the city in the business of selling motor 
  2.1   vehicles at retail. 
  2.2      Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  2.3   authorized by subdivisions 1 and 2 must be used by the city to 
  2.4   pay the costs of collecting the taxes and to pay all or part of 
  2.5   the capital costs of the acquisition and betterment of a health 
  2.6   and education center, including paying debt service on bonds or 
  2.7   other obligations issued to finance the project under 
  2.8   subdivision 4. 
  2.9      Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.10  under Minnesota Statutes, chapter 475, to finance the 
  2.11  acquisition and betterment of the health and education center.  
  2.12  An election to approve the bonds under Minnesota Statutes, 
  2.13  section 475.58, may be held in combination with the election to 
  2.14  authorize imposition of the tax under subdivision 1.  Whether to 
  2.15  permit imposition of the tax and issuance of bonds may be posed 
  2.16  to the voters as a single question.  The question must state 
  2.17  that the sales tax revenues are pledged to pay the bonds, but 
  2.18  that the bonds are general obligations and will be guaranteed by 
  2.19  the city's property taxes. 
  2.20     (b) The issuance of bonds under this subdivision is not 
  2.21  subject to Minnesota Statutes, section 275.60. 
  2.22     (c) The bonds are not included in computing any debt 
  2.23  limitation applicable to the city, and the levy of taxes under 
  2.24  Minnesota Statutes, section 475.61, to pay principal of and 
  2.25  interest on the bonds is not subject to any levy limitation. 
  2.26     The aggregate principal amount of bonds, plus the aggregate 
  2.27  of the taxes used directly to pay costs of the acquisition and 
  2.28  betterment of the health and education center may not exceed 
  2.29  $8,000,000, plus an amount equal to the costs related to 
  2.30  issuance of the bonds and capitalized interest. 
  2.31     (d) The taxes may be pledged to and used for the payment of 
  2.32  the bonds and any bonds issued to refund them, only if the bonds 
  2.33  and any refunding bonds are general obligations of the city. 
  2.34     Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  2.35  subdivisions 1 and 2 expire when the city council determines 
  2.36  that sufficient funds have been received from the taxes to 
  3.1   finance the acquisition and betterment of the health and 
  3.2   education center and to prepay or retire at maturity the 
  3.3   principal, interest, and premium due on any bonds issued for the 
  3.4   project under subdivision 4.  Any funds remaining after 
  3.5   completion of the project and retirement or redemption of the 
  3.6   bonds may be placed in the general fund of the city.  The taxes 
  3.7   imposed under subdivisions 1 and 2 may expire at any earlier 
  3.8   time if the city so determines by ordinance. 
  3.9      Subd. 6.  [EFFECTIVE DATE.] This section is effective upon 
  3.10  compliance by the governing body of the city of Buffalo with 
  3.11  Minnesota Statutes, section 645.021, subdivision 3.