HF 4924

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2024 12:17pm

A bill for an act
relating to local taxes; authorizing a local sales and use tax in the city of Austin.

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

Section 1. new text begin CITY OF AUSTIN; 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, subdivisions 1, 2, and 3a, or 477A.016, or any other law, ordinance, or
city charter, and if approved by the voters at an election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Austin may impose by ordinance a sales and use
tax of one-half of one percent for the purpose 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 Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, paragraphs (b) and (c), the revenues derived from the tax authorized
under subdivision 1 must be used by the city of Austin to pay the costs of collecting and
administering the tax, and to finance up to $25,000,000, plus associated bonding costs, for
the construction and operation of a law enforcement center.
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 Austin may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed
$25,000,000 for the project listed in subdivision 2, plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city, 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,
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) 14 years
after the tax is first imposed; or (2) when the city determines that the amount received from
the tax is sufficient to pay $25,000,000 in project costs authorized under subdivision 2, 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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end