SF 3018

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to local sales taxes; allowing certain cities 
  1.3             to impose a local sales tax if certain criteria are 
  1.4             met; amending Minnesota Statutes 2002, sections 
  1.5             297A.99, subdivision 1, by adding a subdivision; 
  1.6             477A.016. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 297A.99, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [AUTHORIZATION; SCOPE.] (a) A political 
  1.11  subdivision of this state may impose a general sales tax if 
  1.12  permitted by special law or, if the political subdivision 
  1.13  enacted and imposed the tax before the effective date of section 
  1.14  477A.016 and its predecessor provision, or if the tax is allowed 
  1.15  under subdivision 1a. 
  1.16     (b) This section governs the imposition of a general sales 
  1.17  tax by the political subdivision.  The provisions of this 
  1.18  section preempt the provisions of any special law: 
  1.19     (1) enacted before June 2, 1997, or 
  1.20     (2) enacted on or after June 2, 1997, that does not 
  1.21  explicitly exempt the special law provision from this section's 
  1.22  rules by reference. 
  1.23     (c) This section does not apply to or preempt a sales tax 
  1.24  on motor vehicles or a special excise tax on motor vehicles. 
  1.25     [EFFECTIVE DATE.] This section is effective for local sales 
  1.26  taxes for which the authorizing referendum is held after July 1, 
  2.1   2004. 
  2.2      Sec. 2.  Minnesota Statutes 2002, section 297A.99, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 1a.  [GENERAL AUTHORITY; CERTAIN CITIES.] (a) A home 
  2.5   rule charter or statutory city of the second or third class that 
  2.6   is located outside of the metropolitan area, as defined in 
  2.7   section 473.121, subdivision 2, may impose, if approved by the 
  2.8   voters pursuant to subdivision 3, paragraph (a), a local sales 
  2.9   tax of up to one-half of one percent without authorization under 
  2.10  a special law, provided that all the conditions for adoption, 
  2.11  use, and termination of the tax contained in this subdivision 
  2.12  and subdivisions 3 through 12 are met. 
  2.13     (b) The proceeds of a tax imposed under this subdivision 
  2.14  must be dedicated exclusively to payment of the cost plus 
  2.15  interest of a specific capital improvement project that provides 
  2.16  benefit to the city and to the county, region, or territory 
  2.17  beyond the city boundaries, and the project must be construction 
  2.18  or improvement of one of the following: 
  2.19     (1) regional convention or civic center; 
  2.20     (2) regional airport; 
  2.21     (3) public library; 
  2.22     (4) overpasses, arterial and collector roads, or bridges, 
  2.23  on, adjacent to, or connecting to a Minnesota state highway; 
  2.24     (5) railroad overpasses or crossing safety improvements; 
  2.25     (6) flood control or protection; or 
  2.26     (7) lake improvement or water quality projects included in 
  2.27  a watershed district plan. 
  2.28     (c) At least three months prior to holding the referendum 
  2.29  to impose the tax, the city must provide to the commissioner a 
  2.30  resolution approved by the city that shows that the tax will 
  2.31  fund a project that meets the requirements of paragraph (b), the 
  2.32  date on which the referendum for imposing the tax will be held, 
  2.33  and either the estimated length of time that the tax will be 
  2.34  imposed or the amount of money that will be raised by the tax 
  2.35  for the specific project.  The commissioner shall verify that 
  2.36  the requirements under this section are met and that the 
  3.1   estimated time for imposition of the tax and the amount of 
  3.2   revenue raised for the project are reasonable.  The 
  3.3   commissioner's determination is final.  If the commissioner 
  3.4   certifies that the local sales tax meets the requirements of 
  3.5   this subdivision, the commissioner shall design the question 
  3.6   that will be put to the voters to authorize imposition of the 
  3.7   tax.  If the referendum is not held on the date contained in the 
  3.8   resolution, the authority for imposing the tax expires. 
  3.9      (d) The tax, if enacted, expires when the specified revenue 
  3.10  has been raised or the estimated length of time in which the tax 
  3.11  is in effect under the resolution is reached, whichever is 
  3.12  sooner.  The governing board of the city may, by ordinance, 
  3.13  terminate the tax at an earlier date. 
  3.14     [EFFECTIVE DATE.] This section is effective for local sales 
  3.15  taxes for which the authorizing referendum is held after June 
  3.16  30, 2004. 
  3.17     Sec. 3.  Minnesota Statutes 2002, section 477A.016, is 
  3.18  amended to read: 
  3.19     477A.016 [NEW TAXES PROHIBITED.] 
  3.20     No county, city, town or other taxing authority shall 
  3.21  increase a present tax or impose a new tax on sales or income, 
  3.22  except as provided in section 297A.99, subdivision 1a.  
  3.23     [EFFECTIVE DATE.] This section is effective July 1, 2004.