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A bill for an act
relating to taxes; local sales and use; authorizing the city of Minnetonka to impose
a local sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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CITY OF MINNETONKA; 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 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Minnetonka may impose by ordinance a sales and use tax of up to 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 Minnetonka to pay for the following projects
in the city, including the costs of collecting and administering the tax and securing and
paying debt service on bonds issued to finance all or part of the following projects:
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(1) $13,000,000 for the new construction of Fire Station 2;
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(2) $17,600,000 for the new construction of Fire Station 3;
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(3) $34,000,000 for the construction of missing trail segments, identified in the city's
trail improvement plan, that provides connectivity to the regional trail network;
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(4) $35,000,000 for renovations to The Marsh health and wellness center; and
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(5) $16,500,000 for the construction of The Opus Area community public park and open
space.
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Subd. 3.
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Bonding authority.
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(a) The city of Minnetonka may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by 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 $116,100,000, plus an amount applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
money available to the city, 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.
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(b) The bonds are not included in computing any debt limitation applicable to the city.
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.
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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) 30 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 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, must 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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EFFECTIVE DATE.
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This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
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