SF 564

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 03:36pm

A bill for an act
relating to taxation; sales and use; authorizing the city of Avon 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 AVON; 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, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Avon, pursuant to approval by the voters at the general election on
November 6, 2018, may impose by ordinance a sales and use tax of up to 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 revenues. new text end

new text begin Revenues received from taxes authorized by subdivision 1
must be used by the city to:
new text end

new text begin (1) pay the costs of collecting and administering the tax;
new text end

new text begin (2) pay the capital and administrative costs of transportation improvement projects as
adopted in the city of Avon's street priority improvement plan; and
new text end

new text begin (3) pay debt service on bonds issued under subdivision 3 or other obligations issued to
finance the improvements listed in this subdivision in the city.
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 may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed $1,500,000 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,
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) The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2045; or (2) when the city council determines that $1,500,000
has been received from the tax to pay for the cost of the projects authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized
under subdivision 3, including interest on the bonds.
new text end

new text begin (b) 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 the governing body of the
city and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end