SF 2887

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 Hutchinson; authorizing the 
  1.3             city to impose certain taxes. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF HUTCHINSON; TAXES AUTHORIZED.] 
  1.6      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.7   Minnesota Statutes, section 477A.016, or any other provision of 
  1.8   law, ordinance, or city charter, the city of Hutchinson may 
  1.9   impose by ordinance a sales and use tax of up to one-half of one 
  1.10  percent for the purposes specified in subdivision 4, paragraph 
  1.11  (a).  The provisions of Minnesota Statutes, section 297A.48, 
  1.12  govern the imposition, administration, collection, and 
  1.13  enforcement of the tax authorized under this subdivision. 
  1.14     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.15  Minnesota Statutes, section 477A.016, or any other provision of 
  1.16  law, ordinance, or city charter, the city of Hutchinson may 
  1.17  impose by ordinance, for the purposes specified in subdivision 
  1.18  4, paragraph (a), an excise tax of up to $20 per motor vehicle, 
  1.19  as defined by ordinance, purchased or acquired from any person 
  1.20  engaged within the city in the business of selling motor 
  1.21  vehicles at retail. 
  1.22     Subd. 3.  [TAX ON FOOD AND BEVERAGES 
  1.23  AUTHORIZED.] Notwithstanding Minnesota Statutes, section 
  1.24  477A.016, or any other provision of law, ordinance, or city 
  2.1   charter, the city of Hutchinson may impose by ordinance, for the 
  2.2   purposes specified in subdivision 4, paragraph (b), a tax on the 
  2.3   gross receipts from the on-sales of intoxicating liquor and 
  2.4   fermented malt beverages and the sale of food and beverages sold 
  2.5   for consumption on or off the premises by restaurants and places 
  2.6   of refreshment within the city.  The tax is limited to one-half 
  2.7   of one percent on gross receipts while the tax under subdivision 
  2.8   1 is imposed and one percent on gross receipts when the tax 
  2.9   under subdivision 1 expires as provided in subdivision 7.  The 
  2.10  city shall define "restaurant" and "place of refreshment" as 
  2.11  part of the ordinance. 
  2.12     Subd. 4.  [USE OF REVENUES.] (a) Revenues received from 
  2.13  taxes authorized by subdivisions 1 and 2 must be used by the 
  2.14  city to pay the cost of collecting the taxes and to pay for 
  2.15  construction and improvement of a civic and community center and 
  2.16  recreational facilities to serve seniors and youth.  Authorized 
  2.17  expenses include, but are not limited to, acquiring property, 
  2.18  paying construction and operating expenses related to the 
  2.19  development of an authorized facility, and securing or paying 
  2.20  debt service on bonds or other obligations issued to finance the 
  2.21  construction or expansion of an authorized facility.  The 
  2.22  capital expenses for all projects authorized under this 
  2.23  paragraph that may be paid with these taxes is limited to 
  2.24  $5,000,000.  In addition, an amount not to exceed the amount 
  2.25  raised by the tax in subdivision 3 may be used each year for the 
  2.26  purposes listed in paragraph (b). 
  2.27     (b) Revenues received from taxes authorized under 
  2.28  subdivision 3 shall be used by the city to pay the cost of 
  2.29  collecting the tax and to pay all or part of the operating costs 
  2.30  for the civic and community center. 
  2.31     Subd. 5.  [REFERENDUM.] If the Hutchinson city council 
  2.32  intends to exercise the authority provided in subdivisions 1 to 
  2.33  3, it shall conduct a referendum on the issue.  The question, 
  2.34  which shall seek simultaneous approval for imposing all three 
  2.35  taxes, must be submitted to the voters at a general or special 
  2.36  election within one year of the date of final enactment of this 
  3.1   act.  The taxes may not be imposed unless a majority of votes 
  3.2   cast on the question of imposing the taxes is in the 
  3.3   affirmative.  The commissioner of revenue shall prepare a 
  3.4   suggested form of question to be presented at the election.  
  3.5   This subdivision applies notwithstanding any city charter 
  3.6   provision to the contrary. 
  3.7      Subd. 6.  [BONDS.] If the taxes are approved by the city 
  3.8   voters as provided in subdivision 5, the city of Hutchinson may 
  3.9   issue, without additional election, general obligation bonds of 
  3.10  the city in an amount equal to $5,000,000 to pay capital and 
  3.11  administrative expenses for the acquisition, construction, 
  3.12  improvement, and maintenance of the facilities listed in 
  3.13  subdivision 4, paragraph (a).  The debt represented by the bonds 
  3.14  must not be included in computing any debt limitations 
  3.15  applicable to the city.  The levy of taxes required by Minnesota 
  3.16  Statutes, section 475.61, to pay the principal or any interest 
  3.17  on the bonds must not be subject to any levy limitation or be 
  3.18  included in computing or applying any levy limitation applicable 
  3.19  to the city. 
  3.20     Subd. 7.  [TERMINATION OF TAXES.] (a) The taxes imposed 
  3.21  under subdivisions 1 and 2 expire when the city council 
  3.22  determines that sufficient funds have been received from the 
  3.23  taxes to finance the capital and administrative costs for the 
  3.24  acquisition, construction, and improvement of facilities 
  3.25  described in subdivision 4, paragraph (a), and to prepay or 
  3.26  retire at maturity the principal, interest, and premium due on 
  3.27  any bonds issued for the facilities under subdivision 6.  Any 
  3.28  funds remaining after completion of the project and retirement 
  3.29  or redemption of the bonds may be placed in the general fund of 
  3.30  the city.  The taxes imposed under subdivisions 1 and 2 may 
  3.31  expire at an earlier time if the city so determines by ordinance.
  3.32     (b) The tax imposed under subdivision 3 shall only expire 
  3.33  if the city chooses to rescind it by ordinance. 
  3.34     Sec. 2.  [EFFECTIVE DATE.] 
  3.35     Section 1 is effective the day after compliance by the 
  3.36  governing body of the city of Hutchinson with Minnesota 
  4.1   Statutes, section 645.021, subdivision 3.