SF 2536

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Owatonna; allowing the city 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 OWATONNA; TAXES AUTHORIZED.
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 Owatonna
may impose by ordinance a sales and use tax of one-half of one percent for the purposes
specified in subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern
the imposition, administration, collection, and enforcement of the taxes 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 provision of law, ordinance, or city charter, the city of Owatonna
may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of
$20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
engaged within the city 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 Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation
projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota
Department of Transportation, Steele County, and the city of Owatonna; regional parks
and trail developments, West Hills complex, firehall, and library improvement projects;
and a public safety radio system; as described in the city resolution No. 4-06, Exhibit
A, as adopted by the city on January 17, 2006. The amount paid from these revenues
for transportation projects may not exceed $4,450,000 plus associated bond costs. The
amount paid from these revenues for park and trail projects may not exceed $5,400,000
plus associated bond costs. The amount paid from these revenues for West Hills complex,
fire hall, and library improvement projects may not exceed $2,823,000 plus associated
bond costs. The amount paid from these revenues for a public safety radio system may not
exceed $500,000 plus associated bond costs.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin (a) The city of Owatonna, if approved by voters pursuant to
Minnesota Statutes, section 297A.99, may issue bonds under Minnesota Statutes, chapter
475, to pay capital and administrative expenses for the projects described in subdivision 3,
in an amount that does not exceed $13,200,000. A separate 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, 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 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) ten years, or (2) when the city council determines that the
amount of revenues received from the taxes to pay for the projects under subdivision 3 first
equals or exceeds the amount authorized to be spent for each project plus the additional
amount needed to pay the costs related to issuance of the bonds under subdivision 4,
including interest on the bonds. Any funds remaining after completion of the projects
and retirement or redemption of the bonds shall be placed in a capital project fund of
the city. The taxes imposed under sections 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 compliance by the
governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
subdivision 3.
new text end