SF 961

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

  1.1                          A bill for an act 
  1.2             relating to taxes; authorizing the city of Cloquet to 
  1.3             impose a local sales tax. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [CITY OF CLOQUET; TAXES AUTHORIZED.] 
  1.6      Subdivision 1.  [SALES AND USE TAX.] Notwithstanding 
  1.7   Minnesota Statutes, section 477A.016, or any other provision of 
  1.8   law, ordinance, or city charter, if approved by the voters 
  1.9   pursuant to Minnesota Statutes, section 297A.99, the city of 
  1.10  Cloquet may impose by ordinance a sales and use tax of up to 
  1.11  one-half of one percent for the purpose specified in subdivision 
  1.12  3.  The provisions of Minnesota Statutes, section 297A.99, 
  1.13  govern the imposition, administration, collection, and 
  1.14  enforcement of the tax authorized under this subdivision. 
  1.15     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
  1.16  Minnesota Statutes, section 477A.016, or any other provision of 
  1.17  law, ordinance, or city charter, the city of Cloquet may impose 
  1.18  by ordinance, for the purposes specified in subdivision 3, an 
  1.19  excise tax of up to $20 per motor vehicle, as defined by 
  1.20  ordinance, purchased or acquired from any person engaged within 
  1.21  the city in the business of selling motor vehicles at retail. 
  1.22     Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
  1.23  authorized by subdivisions 1 and 2 must be used by the city to 
  1.24  pay the cost of collecting the taxes and to pay for the 
  2.1   following projects: 
  2.2      (1) construction and implementation of riverfront task 
  2.3   force park improvements including Veteran's Park; and 
  2.4      (2) extension of water and sewer lines and other 
  2.5   improvements to city infrastructure necessary for construction 
  2.6   of a city industrial park. 
  2.7      Authorized expenses include, but are not limited to, 
  2.8   acquiring property and paying construction expenses related to 
  2.9   these improvements, and paying debt service on bonds or other 
  2.10  obligations issued to finance acquisition and construction of 
  2.11  these improvements. 
  2.12     Subd. 4.  [BONDING AUTHORITY.] (a) The city may issue bonds 
  2.13  under Minnesota Statutes, chapter 475, to pay capital and 
  2.14  administrative expenses for the improvements described in 
  2.15  subdivision 3 in an amount that does not exceed $6,000,000.  An 
  2.16  election to approve the bonds under Minnesota Statutes, section 
  2.17  475.58, is not required. 
  2.18     (b) The issuance of bonds under this subdivision is not 
  2.19  subject to Minnesota Statutes, sections 275.60 and 275.61. 
  2.20     (c) The debt represented by the bonds is not included in 
  2.21  computing any debt limitation applicable to the city, and any 
  2.22  levy of taxes under Minnesota Statutes, section 475.61, to pay 
  2.23  principal of and interest on the bonds is not subject to any 
  2.24  levy limitation.  
  2.25     Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed under 
  2.26  subdivisions 1 and 2 expire at the earlier of (1) 12 years, or 
  2.27  (2) when the city council determines that sufficient funds have 
  2.28  been received from the taxes to finance the capital and 
  2.29  administrative costs of the improvements described in 
  2.30  subdivision 3, plus the additional amount needed to pay the 
  2.31  costs related to issuance of bonds under subdivision 4, 
  2.32  including interest on the bonds.  Any funds remaining after 
  2.33  completion of the project and retirement or redemption of the 
  2.34  bonds may be placed in the general fund of the city.  The taxes 
  2.35  imposed under subdivisions 1 and 2 may expire at an earlier time 
  2.36  if the city so determines by ordinance. 
  3.1      [EFFECTIVE DATE.] This section is effective the day after 
  3.2   the governing body of the city of Cloquet and its chief clerical 
  3.3   officer timely comply with Minnesota Statutes, section 645.021, 
  3.4   subdivisions 2 and 3.