SF 994

as introduced - 91st Legislature (2019 - 2020) Posted on 02/07/2019 03:18pm

A bill for an act
relating to taxation; authorizing the city of Virginia to impose a local sales and
use tax for specified projects.

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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and as approved by the voters at the November 6, 2018, general election, the city of Virginia
may impose, by ordinance, a sales and use tax of up to 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 Virginia to pay the costs of collecting and
administering the tax, and to finance the costs of renovation, reconstruction, expansion, and
improvements of the Miner's Memorial recreation complex and convention center. Authorized
costs include engineering and construction costs and associated bond issuance costs.
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 project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $30,000,000, plus an amount applied to the payment of 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 subject to any provisions of the home rule charter of the city of
Virginia and are not included in computing any debt limitation applicable to the city. Any
levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 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 at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that the city has received $30,000,000 from this tax to fund the projects listed in subdivision
2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed
costs due to timing of the termination under section 297A.99 shall be placed in the city's
general fund. 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 Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end