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HF 584

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2021 03:23pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/01/2021

Current Version - as introduced

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A bill for an act
relating to taxation; local sales and use; authorizing the city of Floodwood 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 FLOODWOOD; 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Floodwood 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 Floodwood to pay the costs of collecting
and administering the tax and the capital and administrative costs of the Floodwood City-wide
Street and Infrastructure Project, up to $1,250,000.
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 Floodwood may issue bonds under Minnesota
Statutes, chapter 475, to finance 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 $1,250,000, 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 Floodwood, 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 Floodwood, 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 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 city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects 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 the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. 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 Floodwood and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end