SF 160

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Hermantown; expanding sales
tax authorization; amending Laws 1996, chapter 471,
article 2, section 29.

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

Section 1.

Laws 1996, chapter 471, article 2, section 29,
is amended to read:

Sec. 29. CITY OF HERMANTOWN; SALES new text begin AND USE new text end TAX.

Subdivision 1.

Sales new text begin and use new text end tax authorized.

new text begin (a)
new text end Notwithstanding Minnesota Statutes, section 477A.016, or any
other contrary provision of law, ordinance, or city charter, the
city of Hermantown may, by ordinance, impose an additional sales
new text begin and use new text end tax of up to one percent on sales deleted text begin transactions deleted text end new text begin , storage,
and use new text end taxable pursuant to Minnesota Statutes, chapter 297A,
that occur within the city.

new text begin (b) new text end The proceeds of the new text begin first one-half of the one percent
new text end tax imposed under this section must be used deleted text begin to meet the costs of
deleted text end new text begin by the city for the following projects new text end :

(1) extending a sewer interceptor line;

(2) construction of a booster pump station, reservoirs, and
related improvements to the water system; and

(3) construction of a police and fire station.

new text begin (c) Revenues received from the remaining one-half of the
one percent tax authorized under this section must be used by
the city to pay all or part of the capital and administrative
costs of developing, acquiring, constructing, and initially
furnishing and equipping the following projects:
new text end

new text begin (1) construction of a city hall to be connected to the
existing public safety facility;
new text end

new text begin (2) construction of a new facility or purchase of an
existing facility to be used as a public works facility;
new text end

new text begin (3) construction, signalization, and rehabilitation of
primary collector roads and commercial frontage roads, within
the city; and
new text end

new text begin (4) extension of a regional trunk sewer.
new text end

new text begin (d) Authorized expenses include, but are not limited to,
acquiring property; paying construction, administrative, and
operating expenses related to the development of the projects
listed in paragraph (c); paying debt service on bonds or other
obligations, including lease obligations, issued to finance
construction, expansion, or improvement of the projects listed
in paragraph (c); and other compatible uses, including but not
limited to, parking, lighting, and landscaping.
new text end

Subd. 2.

Referendum.

new text begin (a) new text end If the Hermantown city council
proposes to impose the sales tax authorized by this section, it
shall conduct a referendum on the issue.

new text begin (b) If the Hermantown city council initially imposes the
tax at a rate that is less than one percent and proposes
increasing the tax rate at a later date up to the full one
percent, it shall conduct a referendum on the increase of the
tax rate.
new text end

new text begin (c) new text end The question of imposing new text begin or increasing new text end the tax must be
submitted to the voters at a special or general election. The
tax may not be imposed unless a majority of votes cast on the
question of imposing the tax are in the affirmative. The
commissioner of revenue shall prepare a suggested form of
question to be presented at the election. This subdivision
applies notwithstanding any city charter provision to the
contrary.

Subd. 3.

Enforcement; collection; and administration of
taxes.

A sales tax imposed under this section must be reported
and paid to the commissioner of revenue with the state sales
taxes, and be subject to the same penalties, interest, and
enforcement provisions. The proceeds of the tax, less refunds
and a proportionate share of the cost of collection, shall be
remitted at least quarterly to the city. The commissioner shall
deduct from the proceeds remitted an amount that equals the
indirect statewide cost as well as the direct and indirect
department costs necessary to administer, audit, and collect the
tax. The amount deducted shall be deposited in the state
general fund.

new text begin Subd. 3a. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue
general obligation bonds under Minnesota Statutes, chapter 475,
to finance the costs in subdivision 1, paragraph (c). The total
amount of bonds issued for the projects under subdivision 1,
paragraph (c), may not exceed $13,000,000 in the aggregate. An
election to approve the bonds is not required.
new text end

new text begin (b) 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.
new text end

new text begin (c) The taxes authorized under this section may be pledged
to and used for the payment of the bonds and any bonds issued to
refund them.
new text end

Subd. 4.

Termination.

The new text begin portion of the new text end tax authorized
deleted text begin under this section deleted text end new text begin to finance the improvements described in
subdivision 1, paragraph (b), new text end terminates at the later of (1) ten
years after the date of initial imposition of the tax, or (2) on
the first day of the second month next succeeding a
determination by the city council that sufficient funds have
been received from new text begin that portion of new text end the tax new text begin dedicated new text end to finance
deleted text begin the deleted text end new text begin those new text end improvements deleted text begin described in subdivision 1, clauses (1)
to (3), deleted text end and to prepay or retire at maturity the principal,
interest, and premium due on any bonds issued for the
improvements. new text begin The portion of the tax authorized to finance the
improvements described in subdivision 1, paragraph (c),
terminates when the revenues raised are sufficient to finance
those improvements, up to an amount equal to $13,000,000 plus
any interest, premium, and other costs associated with the bonds
issued under subdivision 3a. The city council may terminate
this portion of the tax earlier. new text end Any funds remaining after
completion of the improvements and retirement or redemption of
the bonds may be placed in the general fund of the city.

deleted text begin Subd. 5. deleted text end

deleted text begin Local approval; effective date. deleted text end

deleted text begin This section is
effective the day after final enactment, upon compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the city
of Hermantown.
deleted 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 Hermantown and its chief
clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end