SF 2689

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Rochester; authorizing the 
  1.3             city to impose permanent sales, use, and excise taxes; 
  1.4             specifying purposes for expenditures of the proceeds 
  1.5             of the taxes; requiring a referendum on the 
  1.6             expenditures. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [CITY OF ROCHESTER; TAXES.] 
  1.9      Subdivision 1.  [SALES AND USE TAXES AUTHORIZED.] 
  1.10  Notwithstanding Minnesota Statutes, section 477A.016, or any 
  1.11  other contrary provision of law, ordinance, or city charter, 
  1.12  upon termination of the taxes authorized under Laws 1992, 
  1.13  chapter 511, article 8, section 33, subdivision 1, the city of 
  1.14  Rochester may, by ordinance, impose an additional sales tax of 
  1.15  up to one percent on sales transactions taxable under Minnesota 
  1.16  Statutes, chapter 297A, that occur within the city and may also, 
  1.17  by ordinance, impose an additional compensating use tax of up to 
  1.18  one percent on uses of property within the city, the sale of 
  1.19  which would be subject to the additional sales tax but for the 
  1.20  fact that the property was sold outside the city. 
  1.21     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.22  Minnesota Statutes, section 477A.016, or any other contrary 
  1.23  provision of law, ordinance, or city charter, upon termination 
  1.24  of the tax authorized under Laws 1992, chapter 511, article 8, 
  1.25  section 33, subdivision 2, the city of Rochester may, by 
  1.26  ordinance, impose an excise tax of up to $20 per motor vehicle, 
  2.1   as defined by ordinance, purchased or acquired from any person 
  2.2   engaged within the city in the business of selling motor 
  2.3   vehicles at retail. 
  2.4      Subd. 3.  [COLLECTION.] The commissioner of revenue shall 
  2.5   enter into appropriate agreements with the city of Rochester to 
  2.6   provide for collection by the state on behalf of the city of a 
  2.7   tax imposed by the city of Rochester pursuant to subdivision 1 
  2.8   or 2.  The commissioner shall charge the city of Rochester from 
  2.9   the proceeds of any tax a reasonable fee for its collection.  
  2.10     Subd. 4.  [USE OF REVENUES.] (a) Revenues received from the 
  2.11  taxes imposed under subdivisions 1 and 2 must be used as 
  2.12  provided in this subdivision. 
  2.13     (b) Approximately 25 percent of the revenues must be 
  2.14  expended on projects for higher education facilities and 
  2.15  programs. 
  2.16     (c) The balance of the revenue must be expended on projects 
  2.17  for the improvement of infrastructure and cultural facilities 
  2.18  and for economic development activities such as airport 
  2.19  expansion, public safety emergency dispatch improvements, 
  2.20  groundwater protection projects, and civic center and park and 
  2.21  recreation system projects. 
  2.22     Subd. 5.  [REFERENDUM ON TAX AND EXPENDITURES.] (a) Before 
  2.23  imposition of the tax authorized under this section, the city 
  2.24  must conduct a referendum on a plan devised by the city council 
  2.25  for expenditure of the funds.  The tax may not be imposed until 
  2.26  the expenditure plan has been approved by a majority of the 
  2.27  voters voting on the question at a general election or a special 
  2.28  election.  If the voters do not approve the plan, a revised plan 
  2.29  may be proposed by the city council and submitted to the voters 
  2.30  for approval.  Plans for expenditures for additional projects 
  2.31  are subject to approval at a subsequent referendum as provided 
  2.32  in this subdivision.  If the approved expenditures have been 
  2.33  completed, and no additional plan has been approved by the 
  2.34  voters, the city council shall suspend the tax. 
  2.35     Subd. 6.  [EFFECTIVE DATE.] This section is effective the 
  2.36  day after compliance by the governing body of the city of 
  3.1   Rochester with Minnesota Statutes, section 645.021, subdivision 
  3.2   3.