Minnesota Legislature
SF 1451
as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 08:41am
Current Version - as introduced
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A bill for an act
relating to taxation; sales and use; modifying the local sales tax authorities for
the cities of Mankato and North Mankato; amending Laws 1991, chapter 291,
article 8, section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws
2008, chapter 366, article 7, section 20.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
and Laws 2009, chapter 88, article 4, section 14, is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from taxes authorized by
subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to
pay all or a portion of the expenses of constructing and improving facilities as part of an
urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
expenses include, but are not limited to, acquiring property and paying relocation expenses
related to the development of Riverfront 2000 and related facilities, and securing or paying
debt service on bonds or other obligations issued to finance the construction of Riverfront
2000 and related facilities. For purposes of this section, "Riverfront 2000 and related
facilities" means a civic-convention center, an arena, a riverfront park, a technology center
and related educational facilities, and all publicly owned real or personal property that
the governing body of the city determines will be necessary to facilitate the use of these
facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
landscaping. It also includes the performing arts theatre and the Southern Minnesota
Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
new text begin
(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
at a special or general election held on or before December 31, 2016, the city may by
ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to
a maximum of $29,000,000, plus associated bond costs, to pay all or a portion of the
expenses of the following capital projects:
new text end
new text begin
(1) improvements to regional recreational facilities including existing hockey and
curling rinks, a baseball park, youth athletic fields and facilities, and the municipal
swimming pool including improvements to make the pool compliant with the Americans
with Disabilities Act;
new text end
new text begin
(2) improvements to flood control and the levee system;
new text end
new text begin
(3) water quality improvement projects in Blue Earth and Nicollet Counties;
new text end
new text begin
(4) expansion of the regional transit building and related multimodal transit
improvements;
new text end
new text begin
(5) regional public safety and emergency communications improvements and
equipment; and
new text end
new text begin
(6) matching funds for improvements to publicly owned regional facilities including
a historic museum, supportive housing, and a senior center.
new text end
new text begin
(c) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
at a special or general election held on or before December 1, 2018, the city may by
ordinance use revenues from the taxes authorized under subdivisions 1 and 2, up to a
maximum of $25,000,000, plus associated bond costs, to pay all or a portion of the costs
of constructing the following new regional athletic facilities: ice sheets, swimming and
aquatic facility, multi-use sports bubble, indoor field house, or indoor tennis courts.
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 Mankato and its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 2.
Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
366, article 7, section 10, is amended to read:
Subd. 4.
Expiration of taxing authority and expenditure limitation.
The authority
granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
expire deleted text begin ondeleted text end new text begin at the later of when revenues are sufficient to pay off the bonds, including interest
and all other associated bond costs authorized under subdivision 5, or new text end December 31, 2022new text begin ,
unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized. If either
additional use allowed in subdivision 3, paragraph (b) or (c), are authorized, the taxes
expire at the later of when revenues are sufficient to pay off the bonds, including interest
and all other associated bond costs authorized under subdivision 5, or December 31, 2032.
If both additional uses allowed in subdivision 3, paragraphs (b) and (c), are authorized, the
taxes expire at the later of when revenues are sufficient to pay off the bonds, including
interest and all other associated bond costs authorized under subdivision 5, or December
31, 2038. Upon expiration of the taxes, any remaining fund balance of revenues derived
from the taxes shall be disbursed to the general fund of the city. The taxes imposed under
subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinancenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 3.
Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
Subd. 5.
Bonds.
new text begin (a) new text end The city of Mankato may issue general obligation bonds of the
city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
without election under Minnesota Statutes, chapter 475, on the question of issuance of the
bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
and related facilities shall not be included in computing any debt limitations applicable
to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal
of and interest on the bonds shall not be subject to any levy limitation or be included in
computing or applying any levy limitation applicable to the city.
new text begin
(b) The city of Mankato, subject to voter approval at the election required under
subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount
not to exceed $29,000,000 for the projects listed under subdivision 3, paragraph (b),
without election under Minnesota Statutes, chapter 475, on the question of issuance of the
bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be
included in computing any debt limitations applicable to the city of Mankato, and the levy
of taxes required by Minnesota Statutes, section 475.61, to pay principal of and interest on
the bonds, and shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city. The city may use tax revenue in excess
of one year's principal interest reserve for intended annual bond payments to pay all or a
portion of the cost of capital improvements authorized in subdivision 3,
new text end
new text begin
(c) The city of Mankato, upon the voter approval required under subdivision 3,
paragraph (c), may issue general obligation bonds of the city in an amount not to exceed
$25,000,000 for the projects listed under subdivision 3, paragraph (c), without a separate
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds
or a tax to pay them. The debt represented by bonds under this paragraph shall not be
included in computing any debt limitations applicable to the city of Mankato, and the levy
of taxes required by Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds, shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city.
new text end
new text begin
(d) Notwithstanding the maximum bond limits in this subdivision, the city may use
tax revenue in excess of any and all annual principal and interest payment obligations for
capital replacement associated with the uses authorized in subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 4.
Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
Subd. 6.
Reverse referendumnew text begin ; authorization of extensionsnew text end .
new text begin (a) new text end If the Mankato city
council intends to exercise the authority provided by this section, it shall pass a resolution
stating the fact before July 1, 1991. The resolution must be published for two successive
weeks in the official newspaper of the city or, if there is no official newspaper, in a
newspaper of general circulation in the city, together with a notice fixing a date for a public
hearing on the matter. The hearing must be held at least two weeks but not more than four
weeks after the first publication of the resolution. Following the public hearing, the city
may determine to take no further action or adopt a resolution confirming its intention to
exercise the authority. That resolution must also be published in the official newspaper of
the city or, if there is no official newspaper, in a newspaper of general circulation in the
city. If within 30 days after publication of the resolution a petition signed by voters equal
in number to ten percent of the votes cast in the city in the last general election requesting
a vote on the proposed resolution is filed with the county auditor, the resolution is not
effective until it has been submitted to the voters at a general or special election and a
majority of votes cast on the question of approving the resolution are in the affirmative. The
commissioner of revenue shall prepare a suggested form of question to be presented at the
election. The referendum must be held at a special or general election before December 1,
1991. This subdivision applies notwithstanding any city charter provision to the contrary.
new text begin
(b) If the Mankato city council wishes to extend the taxes authorized under
subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b) or
(c), the city must pass a resolution extending the taxes before July 1, 2015. The tax may
not be imposed unless approved by the voters.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end
Sec. 5.
Laws 2008, chapter 366, article 7, section 20, is amended to read:
Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
Subdivision 1.
Sales and use tax authorized.
Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to
the approval of the voters on November 7, 2006, the city of North Mankato may impose
by ordinance a sales and use tax of one-half of one percent for the purposes specified
in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the taxes authorized under
this subdivision.
Subd. 2.
Use of revenues.
new text begin (a) new text end Revenues received from the tax authorized by
subdivision 1 must be used to pay all or part of the capital costs of the following projects:
(1) the local share of the Trunk Highway 14/County State-Aid Highway 41
interchange project;
(2) development of regional parks and hiking and biking trails;
(3) expansion of the North Mankato Taylor Library;
(4) riverfront redevelopment; and
(5) lake improvement projects.
The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $6,000,000 plus any associated bond costsnew text begin .
new text end
new text begin (b) If the city extends the tax as authorized under subdivision 2a, paragraph (a), the
total amount that may be used to fund these projects is increased by $9,000,000, plus
associated bond costs, minus any revenues used for the purposes listed in paragraph (c)new text end .
new text begin
(c) Revenues raised from the tax imposed under subdivision 1 may also be used to
fund all or a portion of the costs of constructing new regional athletic facilities: ice sheets,
swimming and aquatic facility, multi-use sports bubble, indoor field house, or indoor
tennis courts if those facilities are constructed within the corporate boundaries of the city
of North Mankato. The tax may only be used for this purpose if authorized by the voters
as provided for in subdivision 2a, paragraph (b).
new text end
new text begin Subd. 2a. new text end
new text begin Authorization to extend the tax. new text end
new text begin
(a) Notwithstanding section 297A.99,
subdivision 3, if the North Mankato city council intends to extend the tax authorized under
subdivision 1 to cover an additional $9,000,000 in bonds, plus associated bond costs, to
fund the projects in subdivision 2, paragraph (a), the city must pass a resolution extending
the tax before July 1, 2015. The resolution must be published for two successive weeks in
the official newspaper of the city or, if there is no official newspaper, in a newspaper of
general circulation in the city, together with a notice fixing a date for a public hearing on
the matter. The hearing must be held at least two weeks but not more than four weeks after
the first publication of the resolution. Following the public hearing, the city may determine
to take no further action or adopt a resolution confirming its intention to exercise the
authority. That resolution must also be published in the official newspaper of the city or, if
there is no official newspaper, in a newspaper of general circulation in the city. If, within
30 days after publication of the resolution, a petition signed by voters equal in number to
ten percent of the votes cast in the city in the last general election requesting a vote on the
proposed resolution is filed with the county auditor, the resolution is not effective until it
has been submitted to the voters at a general or special election and a majority of votes
cast on the question of approving the resolution are in the affirmative. The commissioner
of revenue shall prepare a suggested form of the question to be presented at the election.
The referendum must be held at a special or general election before December 1, 2015.
This subdivision applies notwithstanding any city charter provision to the contrary.
new text end
new text begin
(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
at a special or general election held on or before December 1, 2018, the city may use up
to $5,000,000, plus associated bond costs of the additional sales tax revenue allowed to
be raised under paragraph (a), to pay all or a portion of the costs of constructing the new
regional athletic facilities listed in subdivision 2, paragraph (c).
new text end
Subd. 3.
Bonds.
(a) The city of North Mankato, pursuant to the approval of the
voters at the November 7, 2006 referendum authorizing the imposition of the taxes in
this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 2,new text begin paragraph (a),new text end in an
amount that does not exceed $6,000,000. A separate election to approve the bonds under
Minnesota Statutes, section 475.58, is not required.
new text begin
(b) The city of North Mankato, subject to the reverse referendum in subdivision 2a,
paragraph (a), allowing for additional revenue to be spent for the projects in subdivision 2,
paragraph (a), may issue additional bonds under Minnesota Statutes, chapter 475, to pay
capital and administrative expenses for those projects in an amount that does not exceed
$9,000,000. If approved by voters as required under subdivision 2a, paragraph (b), up
to $5,000,000 of the bonds, plus associated bond costs, may be used to pay capital and
administrative costs for the projects listed in subdivision 2, paragraph (b), instead. A
separate election to approve the bonds under Minnesota Statutes, section 475.58, is not
required.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The debt represented by the bonds is 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.
new text begin
(d) Notwithstanding the maximum bond limits set forth above, the city may use tax
revenue in excess of any and all annual principal and interest payment obligations for
capital replacement associated with the uses authorized in subdivision 2.
new text end
Subd. 4.
Termination of taxes.
The tax imposed under subdivision 1 expires when
the city council determines that the amount of revenues received from the taxes to pay for
the projects under subdivision 2new text begin , paragraph (a),new text end first equals or exceeds $6,000,000 plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision 3,
including interest on the bondsnew text begin , unless the tax is extended as allowed in this section. If the
tax is extended as allowed under the reverse referendum under subdivision 2a, paragraph
(a), the tax expires December 31, 2038. In addition, if the tax is extended to cover the
projects in subdivision 2, paragraph (b), the tax expires December 31, 2038new text end . Any funds
remaining after completion of the projects and retirement or redemption of the bonds shall
be placed in a capital facilities and equipment replacement 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 begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of
the city of North Mankato and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end