SF 3020

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

  1.1                          A bill for an act 
  1.2             relating to the St. Cloud area cities; authorizing 
  1.3             local option sales taxes; modifying the use of 
  1.4             revenues; authorizing the cities to impose a sales 
  1.5             tax; amending Laws 1986, chapter 379, section 1; Laws 
  1.6             1986, chapter 379, section 2, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1986, chapter 379, section 1, is amended 
  1.9   to read: 
  1.10     Section 1.  [CITY OF ST. CLOUD; LIQUOR AND FOOD TAX.] 
  1.11     Subdivision 1.  [LIQUOR AND FOOD TAX AUTHORIZED.] 
  1.12  Notwithstanding Minnesota Statutes, section 477A.016, or any 
  1.13  ordinance, city charter, or other provision of law, the city of 
  1.14  St. Cloud may, by ordinance, impose a sales tax supplemental to 
  1.15  the general sales tax imposed in Minnesota Statutes, chapter 
  1.16  297A, the proceeds of which shall be used in accordance with 
  1.17  subdivision 2.  The tax imposed by the city may be not more than 
  1.18  one exceed two percent on the gross receipts from all retail 
  1.19  on-sales of intoxicating liquor and fermented malt beverages 
  1.20  sold at licensed on-sale liquor establishments located within 
  1.21  its geographic boundaries, or not more than one two percent on 
  1.22  the gross receipts from the retail sale of food and beverages 
  1.23  not subject to the liquor tax by a restaurant or place of 
  1.24  refreshment located within its geographic boundaries, or both.  
  1.25  For purposes of this act, the city shall define the terms 
  1.26  "restaurant" and "place of refreshment" by resolution.  The 
  2.1   governing body of the city may adopt an ordinance establishing a 
  2.2   convention center taxing district.  The ordinance shall describe 
  2.3   with particularity the area within the city to be included in 
  2.4   the district.  If the city establishes a convention center 
  2.5   taxing district, the sales taxes authorized under this 
  2.6   subdivision may be imposed only upon the sales occurring at 
  2.7   on-sale liquor establishments, restaurants, or other places of 
  2.8   refreshment located within the district. 
  2.9      Subd. 2.  [USE OF PROCEEDS OF LIQUOR AND FOOD TAX.] The 
  2.10  proceeds of any tax imposed under subdivision 1 shall be used by 
  2.11  the city to pay all or a portion of the expenses of constructing 
  2.12  a convention center facility or and related facilities, and the 
  2.13  municipal athletic complex.  Authorized expenses include, but 
  2.14  are not limited to, securing or paying debt service on bonds or 
  2.15  other obligations issued to finance the construction of a 
  2.16  convention center facility or and related facilities, and the 
  2.17  municipal athletic complex.  For the purposes of this act, 
  2.18  "related facilities" means all publicly owned real or personal 
  2.19  property that the governing body of the city determines will be 
  2.20  necessary to facilitate the use of the convention center 
  2.21  facilities including, but not limited to, parking, skyways, 
  2.22  lighting, and landscaping. 
  2.23     Subd. 3.  [EXPIRATION OF TAXING AUTHORITY.] The authority 
  2.24  granted by subdivision 1 to the city to impose a liquor and food 
  2.25  tax shall expire when the principal and interest on any bonds or 
  2.26  other obligations issued to finance construction of a convention 
  2.27  center facility or and related facilities, and municipal 
  2.28  athletic complex have been paid or at an earlier time as the 
  2.29  city shall, by ordinance, determine.  
  2.30     [EFFECTIVE DATE.] This section is effective for sales and 
  2.31  purchases occurring on or after July 1, 2004. 
  2.32     Sec. 2.  Laws 1986, chapter 379, section 2, subdivision 1, 
  2.33  is amended to read: 
  2.34     Subdivision 1.  [ADDITIONAL TAX AUTHORIZED.] 
  2.35  Notwithstanding Minnesota Statutes, section 477A.016, or any 
  2.36  ordinance, city charter, or other provision of law, the city of 
  3.1   St. Cloud may, by ordinance, impose a tax at a rate not to 
  3.2   exceed two three percent in addition to the tax authorized under 
  3.3   Laws 1979, chapter 197, on the gross receipts from the 
  3.4   furnishing for consideration of lodging at a hotel, motel, 
  3.5   rooming house, tourist court, or resort other than the renting 
  3.6   or leasing of it for a continuous period of 30 days or more. 
  3.7      [EFFECTIVE DATE.] This section is effective for lodging on 
  3.8   and after July 1, 2004. 
  3.9      Sec. 3.  [ST. CLOUD AREA CITIES; SALES AND USE TAX 
  3.10  AUTHORIZED.] 
  3.11     Subdivision 1.  [SALES AND USE TAX 
  3.12  AUTHORIZED.] Notwithstanding Minnesota Statutes, sections 
  3.13  297A.99, subdivision 3, paragraph (d), and 477A.016, or any 
  3.14  other provision of law, ordinance, or city charter, each of the 
  3.15  cities of St. Cloud, Sartell, Sauk Rapids, St. Augusta, St. 
  3.16  Joseph, and Waite Park may impose by ordinance a sales and use 
  3.17  tax at the rate of one-half of one percent for the purposes 
  3.18  specified in subdivision 2, pursuant to the approval of the 
  3.19  voters of that city at the next general election.  The 
  3.20  provisions of Minnesota Statutes, section 297A.99, except 
  3.21  subdivision 3, paragraph (d), govern the imposition, 
  3.22  administration, collection, and enforcement of the tax 
  3.23  authorized under this subdivision. 
  3.24     Subd. 2.  [USE OF REVENUES.] (a) Revenues received from the 
  3.25  tax authorized by subdivision 1 must be used for the cost of 
  3.26  collecting and administering the tax and to pay all or part of 
  3.27  the capital or administrative costs of the development, 
  3.28  acquisition, construction, improvement, and securing and paying 
  3.29  debt service on bonds or other obligations issued to finance the 
  3.30  following regional projects: 
  3.31     (1) St. Cloud Regional Airport; 
  3.32     (2) major transportation improvements; 
  3.33     (3) arts, libraries, and community centers; 
  3.34     (4) acquisition and improvement of park land and open 
  3.35  space; and 
  3.36     (5) St. Cloud Civic Center remodeling and expansion, not to 
  4.1   exceed $20,000,000 from the amount allocated to St. Cloud under 
  4.2   subdivision 3, clause (2).  
  4.3      (b) The revenues returned to each city under subdivision 3 
  4.4   may only be used to fund projects that have been approved by 
  4.5   voters at the referendum authorizing this tax. 
  4.6      Subd. 3.  [ALLOCATION OF SALES AND USE TAX REVENUES TO 
  4.7   CITIES.] Revenues collected from the taxes authorized by 
  4.8   subdivision 1, after paying the cost of collecting and 
  4.9   administering the tax, shall be allocated to cities imposing the 
  4.10  tax as follows: 
  4.11     (1) the first $900,000 of revenues collected annually, 
  4.12  indexed annually to the Consumer Price Index, to the city of St. 
  4.13  Cloud for expansion of the St. Cloud Civic Center or the 
  4.14  construction and relocation of the Great River Regional Library; 
  4.15  and 
  4.16     (2) the revenues collected from the taxes imposed under 
  4.17  subdivision 1 that exceed the amount needed to meet the 
  4.18  obligations under clause (1) in any year shall be returned to 
  4.19  the cities pursuant to a joint powers agreement allocating sales 
  4.20  tax revenues among the cities. 
  4.21     Subd. 4.  [ST. CLOUD BONDING AUTHORIZED.] Pursuant to the 
  4.22  approval of the city voters to impose the tax authorized in 
  4.23  subdivision 1, the city of St. Cloud may issue without an 
  4.24  additional election, general obligation bonds of the city not to 
  4.25  exceed $80,000,000 to pay the costs of the projects specified in 
  4.26  subdivision 2.  The debt represented by the bonds must not be 
  4.27  included in computing any debt limitations applicable to the 
  4.28  city, and the levy of taxes required by Minnesota Statutes, 
  4.29  section 475.61, to pay the principal or any interest on the 
  4.30  bonds must not be subject to any levy limitations or be included 
  4.31  in computing or applying any levy limitation applicable to the 
  4.32  city. 
  4.33     Subd. 5.  [TERMINATION OF TAX.] The tax imposed in the city 
  4.34  of St. Cloud under subdivision 1 expires when the city council 
  4.35  determines that sufficient funds have been collected from the 
  4.36  tax to retire or redeem the bonds authorized under subdivision 
  5.1   3.  The taxes imposed in the cities of Sartell, Sauk Rapids, St. 
  5.2   Augusta, St. Joseph, and Waite Park expire when the projects 
  5.3   authorized under subdivision 2 have been completed, but no later 
  5.4   than 20 years after the date the tax is first imposed.  Any 
  5.5   funds remaining after completion of the projects specified in 
  5.6   subdivision 2 and retirement or redemption of the bonds may be 
  5.7   placed in the general fund of the city.  The tax imposed under 
  5.8   subdivision 1 may expire at an earlier time if the city so 
  5.9   determines by ordinance. 
  5.10     [EFFECTIVE DATE.] This section is effective the day after 
  5.11  compliance by the governing body of the city with Minnesota 
  5.12  Statutes, section 645.021, subdivision 3, for sales and 
  5.13  purchases on and after January 1, 2006.