SF 3822

as introduced - 91st Legislature (2019 - 2020) Posted on 03/03/2020 08:56am

A bill for an act
relating to taxation; local sales and use; authorizing the city of East Grand Forks
to impose a local sales and use tax.

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

Section 1. new text begin CITY OF EAST GRAND FORKS; TAXES 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of East Grand Forks may impose by ordinance a
sales and use tax of one percent for the purposes 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.
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 (a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city of East Grand Forks to pay the
costs of collecting and administering the tax and the capital and administrative costs of any
or all of the projects listed in this subdivision. The amount spent on each project is limited
to the amount set forth below plus an amount equal to interest on and the costs of issuing
any bonds:
new text end

new text begin (1) construction of improvements to the indoor and outdoor ice arenas, the Civic Center,
the VFW Memorial Arena, and the Blue Line Arena including any or all of the following
improvements: renovation or expansion of existing recreation and athletic facilities,
conversion of current ice surface for other recreational and athletic uses, construction of
additional ice sheets, parking lot improvements, drainage improvements, and exterior
building repair in an amount not to exceed $24,000,000; and
new text end

new text begin (2) construction of improvements to athletic fields including any or all of the following
improvements: improvements to existing baseball and softball fields, construction of new
baseball and softball fields, drainage improvements, installation of synthetic turf, playing
surface turf grass replacement, installation of new lighting, dugouts, grandstands, changing
spaces, and other recreational improvements in an amount not to exceed $2,500,000.
new text end

new text begin (b) The total that may be raised from the tax to pay for these projects is limited to
$15,000,000, plus an amount equal to interest on and the costs of issuing any bonds issued
for these projects.
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 East Grand Forks may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2 if approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $15,000,000 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, 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 East Grand Forks, 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 (a) Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of:
new text end

new text begin (1) 20 years after the tax is first imposed; or
new text end

new text begin (2) when the city council determines that $15,000,000 has been received from the tax
to fund any portion of either of the projects listed in subdivision 2, and approved by voters
as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds.
new text end

new text begin (b) Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
3, paragraph (f), any funds remaining after payment of the allowed costs due to the timing
of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,
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 the governing body of the
city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end