SF 1747

as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2015 09:08am

A bill for an act
relating to taxation; sales and use; allowing Dakota County to impose a sales and
use tax to fund transportation spending.

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

Section 1. new text begin DAKOTA COUNTY; SALES AND USE TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, sections
297A.99, 297A.993, and 477A.016, or any other contrary provision of statute, ordinance,
or charter, and in addition to any taxes that the county may impose under another law
or statute, the Dakota County Board of Commissioners may, by resolution, impose a
sales and use tax of one-quarter of one percent on retail sales and uses taxable under
Minnesota Statutes, chapter 297A. The provisions of Minnesota Statutes, section 297A.99,
subdivisions 4 to 13, apply to the imposition, administration, collection, and enforcement
of the tax authorized under this section.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of revenues to cities and towns. new text end

new text begin Revenues from the tax in
subdivision 1 shall be collected by the commissioner of revenue and remitted to the county
as provided in Minnesota Statutes, section 297A.99, subdivision 11. Within 30 days of
receiving revenues from the tax, the county must distribute 50 percent of the revenues to
all towns and cities located partially or totally in the county. This portion of the revenue
shall be distributed among the eligible political subdivisions based on their share of the
county population according to the most recent population estimate. For a city that is
partially located outside of the county boundaries, only the share of its population residing
in the county shall count in determining its share of the revenue. A town or city may enter
into an agreement with the county allowing the county to retain the city's or town's portion
of the revenue under this subdivision to fund joint projects. The remaining revenue from
the tax is retained by the county.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin The county, towns, and cities must use any revenue
received from the tax in subdivision 1 to fund transportation costs, including operations
and maintenance, as well as capital projects. A county may issue bonds for transportation
projects backed by these revenues subject to the election requirements in Minnesota
Statutes, chapter 475.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin (a) Dakota County may issue bonds backed by the
revenues from the tax in subdivision 1 to pay for capital transportation projects, subject
to the requirements under Minnesota Statutes, chapter 475. The issuance of bonds by
the county under this subdivision is not subject to Minnesota Statutes, sections 275.60
and 275.61. The debt represented by the bonds is not included in computing any debt
limitations applicable to the county 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 end

new text begin (b) A town or city may not issue bonds backed by the revenues from the tax in
subdivision 1, but may use the revenues to make bond payments on other bonds used
to finance transportation capital projects.
new text end

new text begin Subd. 5. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "city" means a statutory or home rule charter city;
new text end

new text begin (2) "population" means the population estimated or established at least 30 days before
the required date of each distribution, by the most recent federal census; by a special census
conducted under contract with the United States Census Bureau; by a population estimate
made by the Metropolitan Council pursuant to Minnesota Statutes, section 473.24; or by a
population estimate of the state demographer made pursuant to Minnesota Statutes, section
4A.02, whichever is the most recent as to the stated date of the count or estimate; and
new text end

new text begin (3) "transportation costs" includes costs associated with all forms of transportation,
including but not limited to roads and bridges, transit systems, bicycle and pedestrian
systems, and other transportation modes.
new text end

new text begin Subd. 6. new text end

new text begin Termination of the tax. new text end

new text begin The county may terminate the tax at the start
of any calendar quarter by resolution provided that (1) the remaining county share of
revenues from the tax are sufficient to pay all debt obligations for bonds backed by these
revenues, and (2) the county has provided written notice of the planned termination of the
tax at least six months before the date of termination to all cities and towns in the county.
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 Dakota County and its chief clerical officer timely comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end