SF 4167

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 09:01am

A bill for an act
relating to taxation; local sales and use; authorizing the city of Northfield 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 NORTHFIELD; 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 Northfield may impose by ordinance a sales and
use tax of one-half 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 The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Northfield to pay the costs of collecting and
administering the tax and for up to $13,000,000 for a project consisting of construction,
reconstruction, and capital improvements, to the regional parks, trails, and open spaces
listed in the city council Resolution 2020-011, Option A, which passed January 21, 2002,
plus an amount needed for securing and paying debt service on bonds issued to finance the
project.
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 Northfield may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the project authorized in subdivision 2 and
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 $13,000,000 for the project listed in subdivision 2, 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 Northfield, 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 Northfield, 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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the $13,000,000 in project costs authorized under
subdivision 2, and approved by the 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.
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 Northfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end