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HF 4791

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/08/2022 12:11pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to local taxes; modifying the local sales and use tax authorization for the
city of Oakdale; amending Laws 2021, First Special Session chapter 14, article 8,
section 15.

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

Section 1.

Laws 2021, First Special Session chapter 14, article 8, section 15, is amended
to read:


Sec. 15. CITY OF OAKDALE; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other ordinance or city charter, and if approved by the voters at
a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Oakdale 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.

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and
administering the tax and paying 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:

(1) deleted text begin$22,000,000deleted text endnew text begin $24,000,000new text end plus associated bonding costs for construction of a new
public works facility; and

(2) deleted text begin$15,000,000deleted text endnew text begin $18,000,000new text end plus associated bonding costs for construction and
rehabilitation, and associated building costs of the police department facility.

Subd. 3.

Bonding authority.

(a) The city of Oakdale may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed: (1) deleted text begin$22,000,000deleted text endnew text begin $24,000,000new text end for the project listed in subdivision 2, clause (1),
plus an amount applied to the payment of costs of issuing the bonds; and (2) deleted text begin$15,000,000deleted text endnew text begin
$18,000,000
new text end for the projects listed in subdivision 2, clause (2), plus an amount applied to
the payment of costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of Oakdale, 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.

(b) The bonds are not included in computing any debt limitation applicable to the city.
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. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) deleted text begin25deleted text endnew text begin 40new text end years after the tax is first imposed; or (2) when the city council
determines that the city has received from this tax deleted text begin$37,000,000deleted text endnew text begin $42,000,000new text end to fund the
projects listed in subdivision 2, plus an amount sufficient to pay costs related to issuance
of any bonds authorized in subdivision 3, including interest on the bonds. Except as otherwise
provided under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to timing of the termination under
Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.

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 Oakdale and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end