as introduced - 90th Legislature (2017 - 2018) Posted on 02/07/2017 08:58am
A bill for an act
relating to taxation; authorizing the city of Fairmont to impose a local sales and
use tax and issue bonds for specified projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 8, 2016, the city
of Fairmont 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.
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The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
administering the tax and to finance the capital and administrative costs of constructing and
funding recreational amenities, trails, and a community center. The total that may be raised
from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the
issuance and paying debt service on bonds for these projects.
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(a) The city of Fairmont may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $15,000,000, 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 of
Fairmont, 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.
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(b) The bonds are not included in computing any debt limitation applicable to the city
of Fairmont, 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.
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The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. 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 an earlier
time if the city so determines by ordinance.
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This section is effective the day after compliance by the governing
body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
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