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SF 3345

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 02:49pm

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 Grand Rapids to impose a local sales
and use tax.

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

Section 1. new text beginCITY OF GRAND RAPIDS; 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, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election held before December 31, 2021, the city
of Grand Rapids may impose by ordinance a sales and use tax 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 Grand Rapids to pay the costs of collecting
and administering the tax and to finance up to $10,980,000 for reconstruction, remodeling,
and upgrades to the Grand Rapids IRA Civic Center. Authorized costs include design,
construction, reconstruction, mechanical upgrades, and engineering costs, as well as the
associated bond costs for any bonds issued under subdivision 3.
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 Grand Rapids may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $10,980,000, 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 of Grand Rapids, 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
of Grand Rapids, 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 The tax imposed under subdivision 1 expires when the
city council determines that $10,980,000, plus an amount sufficient to pay the costs related
to issuance of any bonds authorized under subdivision 3, including interest on the bonds,
has been received from the tax to pay the costs of projects authorized under subdivision 2.
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, except for funds required to be retained
in the state general fund under Minnesota Statutes, section 297A.99, subdivision 3. 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 Grand Rapids and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end