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Minnesota Legislature

Office of the Revisor of Statutes

SF 1598

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 03:17pm

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; sales and use; modifying the city of Two Harbors' local option
sales tax authority; authorizing an additional tax and specifying additional projects;
amending Laws 1998, chapter 389, article 8, section 45, subdivisions 1, 3, as
amended, 4, 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 1998, chapter 389, article 8, section 45, subdivision 1, is amended to
read:


Subdivision 1.

Sales and use taxes.

new text begin(a) new text endNotwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the voters
of the city at the next general election held after the date of final enactment of this act, the
city of Two Harbors may impose by ordinance, a sales and use tax at a rate of up to one-half
of one percent for the purposes specified in subdivision 3new text begin, paragraph (a)new text end.

new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
sections 297A.99 and 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 Two Harbors may, by
ordinance, impose an additional sales and use tax at a rate of one-half of one percent for
the purposes specified in subdivision 3, paragraph (b).
new text end

new text begin (c)new text end The provisions of Minnesota Statutes, section deleted text begin297A.48deleted text endnew text begin 297A.99new text end, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision.

Sec. 2.

Laws 1998, chapter 389, article 8, section 45, subdivision 3, as amended by Laws
2008, chapter 366, article 7, section 11, is amended to read:


Subd. 3.

Use of revenues.

new text begin(a) new text endRevenues received from the taxes authorized under
subdivision 1new text begin, paragraph (a),new text end must be used for sanitary sewer separation, wastewater
treatment, water system improvements, and harbor refuge development projects.

new text begin (b) Revenues from the tax authorized under subdivision 1, paragraph (b), must be used
by the city of Two Harbors to pay the costs of collecting and administering the tax and to
finance the capital and administrative costs of water and sewer infrastructure projects
including gravity-fed sewer mains, water mains, drain tile, service lines, street patching,
acquiring property, related engineering, and construction expenses.
new text end

Sec. 3.

Laws 1998, chapter 389, article 8, section 45, subdivision 4, is amended to read:


Subd. 4.

Bonding authority.

(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance the capital expenditure and improvement projectsnew text begin under subdivision
1, paragraph (a)
new text end. An election to approve the bonds under Minnesota Statutes, section 475.58,
may be held in combination with the election to authorize imposition of the tax under
subdivision 1new text begin, paragraph (a)new text end. Whether to permit imposition of the tax and issuance of bonds
may be posed to the voters as a single question. The question must state that the sales tax
revenues are pledged to pay the bonds, but that the bonds are general obligations and will
be guaranteed by the city's property taxes.

(b) new text beginThe city may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 3, paragraph (b), in an
amount that does not exceed $30,000,000. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required.
new text end

new text begin (c) new text endThe issuance of bonds under this subdivision is not subject to Minnesota Statutes,
section 275.60.

deleted text begin (c)deleted text endnew text begin (d)new text end The bonds are not included in computing any debt limitation applicable to the
city, and the 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.

The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to
pay eligible capital expenditures and improvements new text beginunder subdivision 3, paragraph (a), new text endmay
not exceed $20,000,000, plus an amount equal to the costs related to issuance of the bonds.

deleted text begin (d)deleted text endnew text begin (e)new text end The taxes may be pledged to and used for the payment of the bonds and any bonds
issued to refund them, only if the bonds and any refunding bonds are general obligations
of the city.

Sec. 4.

Laws 1998, chapter 389, article 8, section 45, subdivision 5, is amended to read:


Subd. 5.

Termination of taxes.

new text begin(a) new text endThe authority granted under subdivision 1new text begin, paragraph
(a),
new text end to the city of Two Harbors to impose sales and use taxes expires when the costs of the
projects described in subdivision 3new text begin, paragraph (a),new text end have been paid.

new text begin (b) The authority granted under subdivision 1, paragraph (b), expires at the earlier of:
(1) 25 years after the tax is first imposed; or (2) when the city council determines that the
amount of revenues received from the taxes first equals or exceeds $30,000,000, plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
4, paragraph (b), including interest on the bonds. Any funds remaining after completion of
the project and retirement or redemption of the bonds may be placed in the general fund of
the city. The taxes imposed under subdivision 1, paragraph (b), may expire at an earlier
time if the city so determines by ordinance.
new text end

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin This act is effective the day after the governing body of the city of Two Harbors and its
chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end