SF 1579

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/02/2021 08:55am

A bill for an act
relating to taxation; local sales and use; authorizing the city of Wadena 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 WADENA; 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,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Wadena may impose, by ordinance, a sales and use tax of one-quarter 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.
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 Wadena to pay the costs of collecting and
administering the tax and to finance up to $3,000,000, plus associated bonding costs including
securing and paying debt service on bonds issued, for the Wadena Library Rehabilitation
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 Wadena may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $3,000,000, 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 Wadena,
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 (b) The bonds 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. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; 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, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest
costs, related to the issuance of the bonds authorized in subdivision 3. 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 city's general fund. 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 Wadena and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end