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Minnesota Legislature

Office of the Revisor of Statutes

SF 1513

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 02:33pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; authorizing the city of Detroit Lakes 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 beginCITY OF DETROIT LAKES; 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 Detroit
Lakes 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 Detroit Lakes to pay the costs of collecting
and administering the tax, and construction of a new police department facility in the city,
including securing and paying debt service on bonds issued to finance all or part of this
project. The total amount of the police department facility to be funded with the tax imposed
under subdivision 1 shall not exceed $6,700,000, excluding associated debt service 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 Detroit Lakes 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 $6,700,000, 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 Detroit Lakes, 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
Detroit Lakes 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) ten years after the tax is first imposed; or (2) when the city council determines
that the city has received $6,700,000 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 Minnesota Statutes, 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 Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end