SF 1793

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; authorizing the city of Ely 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 ELY; SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, if approved by
the voters pursuant to Minnesota Statutes, section 297A.99, the city of Ely may impose by
ordinance a sales and use tax of up to 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 revenues. new text end

new text begin The proceeds of the tax imposed under this section
must be used by the city of Ely to pay the costs of collecting and administering the tax
and to pay the following costs:
new text end

new text begin (1) water and sewer system infrastructure improvements related to west end and
east end expansion and development and extension of services into the towns of Morse
and Winton;
new text end

new text begin (2) land acquisition and site development related to west end development;
new text end

new text begin (3) establishment of an entry to the Boundary Waters that includes the chamber of
commerce, visitor center, and related facilities;
new text end

new text begin (4) construction of a pool facility that would support Independent School District
No. 696 and Ely Bloomenson Community Hospital;
new text end

new text begin (5) infrastructure improvement related to the expansion of the Ely Bloomenson
Community Hospital;
new text end

new text begin (6) installation of improvements authorized by Minnesota Statutes, chapter 429;
new text end

new text begin (7) Chapman Street redevelopment activities; and
new text end

new text begin (8) community center use transition to establish the Boundary Waters Historical
Center and provide for compliance with the Americans with Disabilities Act.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) If the tax authorized under subdivision 1 is
approved by the voters, the city of Ely may issue bonds under Minnesota Statutes,
chapter 475, to pay the capital and administrative expenses for the improvement projects
authorized under subdivision 2. The total amount of bonds issued for the projects listed in
subdivision 2 may not exceed $20,000,000 in aggregate. An election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The debt represented by the bonds is not included in computing any debt
limitation applicable to the city of Ely, and the levy of taxes under Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any
levy limitation.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The tax authorized under this section expires at
the earlier of:
new text end

new text begin (1) collection of $50,000,000 in sales and use tax revenues; or
new text end

new text begin (2) when the city council determines that the taxes imposed under this subdivision
have raised revenue sufficient to pay the bonds authorized in subdivision 3, including
administrative costs and interest.
new text end

new text begin Any funds remaining after completion of the projects and retirement or redemption
of the bonds may 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 compliance by the
governing body of the city of Ely with Minnesota Statutes, section 645.021, subdivision 3.
new text end