SF 3505

as introduced - 89th Legislature (2015 - 2016) Posted on 04/12/2016 11:26am

A bill for an act
relating to the city of Virginia; allowing the city to impose a local sales tax to
fund renovation and expansion of the Miners Memorial Building.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF VIRGINIA; TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota
Statutes, section 297A.99, subdivisions 2 and 3, or 477A.016, or any other law, ordinance,
or city charter, and if approved by the voters at the 2016 general election, the city of
Virginia may impose, by ordinance, a sales and use tax of up to one-half of one percent for
the purpose specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. Prior to the vote
at the general election, the city must (1) pass a resolution in support of the imposition of
the tax containing the information required under Minnesota Statutes, section 297A.99,
subdivision 2, and (2) hold three informational hearings at the Miners Memorial Building
outlining the project costs and specifying which costs will be funded through the local
sales tax.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Virginia to pay the costs of
collecting and administering the tax and to finance up to $18,000,000 of the capital and
administrative costs of renovation, expansion, and improvement of the Miners Memorial
Building. Authorized expenses include but are not limited to design and development costs,
property acquisition, construction and other expenses related to the renovation, expansion,
and improvement of the facility, including parking and other related facilities, and securing
and paying debt service on bonds issued under subdivision 3 or other obligations issued to
finance the renovation, expansion, and improvement of the Miners Memorial Building.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Virginia may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facility
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $18,000,000 plus an amount to be applied to the payment
of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
available to the city of Virginia, including the tax authorized under subdivision 1. The
issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the
city of Virginia, 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. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires when
the city council determines that $18,000,000 plus an amount sufficient to pay the costs,
including interest, related to issuance of the bonds authorized under subdivision 3, has
been received from the tax to pay for the cost of the project authorized under subdivision
2. Any funds remaining after payment of all such costs and retirement or redemption
of the bonds shall be placed in the general fund of the city. The tax imposed under
subdivision 1 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 Virginia with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end