HF 4149

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; expanding the use of the Two Harbors local sales tax revenue;
amending Laws 1998, chapter 389, article 8, section 45, subdivisions 3, 4.

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

Section 1.

Laws 1998, chapter 389, article 8, section 45, subdivision 3, is amended to
read:

Subd. 3.

Use of revenues.

Revenues received from the taxes authorized under
subdivision 1 must be used for sanitary sewer separation, wastewater treatment, new text begin water
system improvements, new text end and harbor refuge development projects.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and upon compliance by the city of Two Harbors with Minnesota Statutes, section
645.021, subdivision 3.
new text end

Sec. 2.

Laws 1998, chapter 389, article 8, section 45, subdivision 4, is amended to read:

Subd. 4.

Bonding authority.

(a) The city may issue bonds under Minnesota
Statutes, chapter 475, to finance the capital expenditure and improvement projects. An
election to approve the bonds under Minnesota Statutes, section 475.58, may be held in
combination with the election to authorize imposition of the tax under subdivision 1.
Whether to permit imposition of the tax and issuance of bonds may be posed to the voters
as a single question. The question must state that the sales tax revenues are pledged to
pay the bonds, but that the bonds are general obligations and will be guaranteed by the
city's property taxes.

(b) The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, section 275.60.

(c) The bonds are not included in computing any debt limitation applicable to the
city, and the 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.

The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to
pay eligible capital expenditures and improvements may not exceed deleted text begin $20,000,000 deleted text end new text begin $....... new text end ,
plus an amount equal to the costs related to issuance of the bonds.

(d) The taxes may be pledged to and used for the payment of the bonds and any
bonds issued to refund them, only if the bonds and any refunding bonds are general
obligations of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and upon compliance by the city of Two Harbors with Minnesota Statutes, section
645.021, subdivision 3.
new text end