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HF 554

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 02:14pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; sales and use; authorizing the city of Fergus Falls 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 FERGUS FALLS; TAXES AUTHORIZED.
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 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the November 8, 2016, general election, the city
of Fergus Falls may impose, by ordinance, a sales and use tax of up to 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.
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 The revenues from the tax authorized under
subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and
administering the tax and securing and paying debt service on bonds issued to finance all
or part of the costs of the expansion and betterment of the Fergus Falls Public Library located
at 205 East Hampden Avenue in the city of Fergus Falls.
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 Fergus Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $9,800,000, 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 Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, section 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 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.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines
that $9,800,000 has been received from the tax to pay for the cost of the project authorized
under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at any
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 Fergus Falls with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end