SF 1474

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 02:12pm

A bill for an act
relating to taxation; authorizing the city of Willmar to impose a local sales and
use tax and an excise tax for specified projects.

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

Section 1. new text begin CITY OF WILLMAR; TAX 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,
sections 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of Willmar
may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
purposes specified in subdivision 3. 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 Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.016,
or any other contrary provision of law, ordinance, or city charter, the city of Willmar may
impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20
per motor vehicle, as defined by ordinance, purchased or acquired from any person engaged
within the city of Willmar in the business of selling motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin (a) The revenues derived from the taxes authorized under
subdivisions 1 and 2 must be used by the city of Willmar to pay the costs of collecting and
administering the taxes, and to pay for the projects listed in this subdivision, including
securing and paying debt service on bonds issued to finance all or part of these projects.
The total amount of projects to be funded with the taxes imposed under subdivisions 1 and
2 shall not exceed $30,000,000 plus the costs related to the issuance and paying debt service
on bonds for these projects. The amount that may be spent on each project is limited to:
new text end

new text begin (1) $2,000,000 for a community center replacement;
new text end

new text begin (2) $6,000,000 for new athletic fields;
new text end

new text begin (3) $3,000,000 for infrastructure improvements at Robins Island Regional Park;
new text end

new text begin (4) $2,000,000 for a new playground and spectator amenities at Swansson Field Regional
Park;
new text end

new text begin (5) $7,000,000 for stormwater management infrastructure improvements; and
new text end

new text begin (6) $10,000,000 for a new recreation and event center.
new text end

new text begin (b) Notwithstanding the limits listed in paragraph (a) the city may by ordinance reallocate
up to 10 percent of the funds designated for one or more projects listed in that paragraph to
other projects listed in that paragraph.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin The city of Willmar may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 3. The aggregate principal amount of bonds issued under this subdivision may
not exceed $30,000,000, 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 Willmar,
including the taxes authorized under subdivisions 1 and 2. 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 The bonds are not subject to any provisions of the home rule charter of the city of Willmar
and are not included in computing any debt limitation applicable to the city. 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. 5. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivisions 1 and 2 expire
at the earlier of: (1) 13 years after the taxes are first imposed; or (2) when the city council
determines that the city has received $30,000,000 from this tax to fund the projects listed
in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance
of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed
costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be
placed in the general city's fund. The taxes imposed under subdivisions 1 and 2 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 Willmar and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end