SF 1297

as introduced - 92nd Legislature (2021 - 2022) Posted on 08/16/2021 02:57pm

A bill for an act
relating to taxation; local 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; authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
the city of Fergus Falls may, if approved by the voters at a general election as required under
Minnesota Statutes, section 297A.99, subdivision 3, 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.
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 derived 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 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:
new text end

new text begin (1) $7,800,000 for an aquatics center;
new text end

new text begin (2) $2,500,000 for a regional trails project; and
new text end

new text begin (3) $5,200,000 for the DeLagoon Improvement Project.
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 facilities
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds;
new text end

new text begin (2) $2,500,000 for the project listed in subdivision 2, clause (2), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and
new text end

new text begin (3) $5,200,000 for the project listed in subdivision 2, clause (3), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) 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, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Fergus Falls, 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) December
1, 2039, or (2) when the city council determines that the amount received from the tax is
sufficient to pay for the project costs authorized under subdivision 2 for projects approved
by voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph
(a), 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 Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end