Owatonna; local sales and use tax imposition authorized, and use of certain other revenues authorized.

A bill for an act

relating to taxation; sales and use; authorizing the city of Owatonna to impose a

local sales and use tax; authorizing use of certain other revenues.

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

Section 1.
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CITY OF OWATONNA; TAXES AUTHORIZED.
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Subdivision 1.

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Sales and use tax authorization.

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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 as required under Minnesota Statutes,

section 297A.99, subdivision 3, the city of Owatonna 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. The tax imposed under this subdivision is in addition to any local

sales and use tax imposed under any other special law.

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Subd. 2.

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Use of sales and use tax revenues.

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The revenues derived from the tax authorized

under subdivision 1 must be used by the city of Owatonna to pay the costs of collecting and

administering the tax and to finance $75,000,000, plus associated bonding costs, for the

construction of a community center.

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Subd. 3.

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Bonding authority.

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(a) The city of Owatonna may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the facilities 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 $75,000,000 for the projects listed in subdivision 2

plus an amount to be applied to the payment of the costs of issuing the bonds.

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(b) The bonds may be paid from or secured by any money available to the city of

Owatonna, including the tax authorized under subdivision 1 and the full faith and credit of

the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,

sections 275.60 and 275.61.

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(c) The bonds are not included in computing any debt limitation applicable to the city

of Owatonna, 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.

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Subd. 4.

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Termination of taxes.

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Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 25 years

after being 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 money 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.

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Subd. 5.

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Formerly authorized local sales and use tax; use of revenues.

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Notwithstanding

any law to the contrary, the city of Owatonna may use revenues remaining from collection

of the tax authorized under Laws 2006, chapter 259, article 3, section 12, for the purposes

specified in subdivision 2.

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EFFECTIVE DATE.

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This section is effective the day after the governing body of the

city of Owatonna and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

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