SF 3716

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 03:46pm

A bill for an act
relating to taxation; local sales and use; authorizing Lake of the Woods County to
impose a local sales and use tax.

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

Section 1. new text begin LAKE OF THE WOODS COUNTY; LOCAL SALES AND USE 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 477A.016, or any other law or ordinance, and if approved by the voters at a general
election as required under Minnesota Statutes, section 297A.99, subdivision 3, Lake of the
Woods County may impose by ordinance a sales and use tax of up to one and one-half
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.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
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 Lake of the Woods County to pay the costs of collecting
and administering the tax, and to finance up to $14,000,000 for the construction of a new
county jail and law enforcement center. Authorized costs include related parking, design,
construction, reconstruction, mechanical upgrades, and engineering costs, as well as payment
of debt service on bonds issued to finance the project listed in this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Lake of the Woods County may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $14,000,000 plus an amount needed to pay
capitalized interest and 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 county,
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 county.
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 Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 25 years
after the tax is first imposed; or (2) when the county commission determines that the amount
received from the tax is sufficient to pay for the project costs authorized under subdivision
2 for the project approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of allowed costs due to the timing of the termination of
the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the county. The tax imposed under subdivision 1 may expire at an earlier
time if the county 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 Lake
of the Woods County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end