Oak Park Heights; local sales and use tax imposition authorized, and use of other revenues authorized.

A bill for an act

relating to taxation; sales and use; authorizing the city of Oak Park Heights 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 OAK PARK HEIGHTS; 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 Oak Park Heights 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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Notwithstanding Minnesota Statutes, section

297A.99, subdivision 2, paragraph (d), the revenues derived from the tax authorized under

subdivision 1 must be used by the city of Oak Park Heights to pay the costs of collecting

and administering the tax, and to finance $41,000,000, plus associated bonding costs, for

water infrastructure.

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Subd. 3.

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Bonding authority.

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(a) The city of Oak Park Heights may issue bonds under

Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the water

infrastructure facilities and systems 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

$41,000,000 for the project 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 Oak

Park Heights, 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 Oak Park Heights 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) 20 years

after being first imposed, or (2) when the city council determines that $41,000,000 has been

received from the tax to fund the project authorized under subdivision 2, 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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EFFECTIVE DATE.

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

city of Oak Park Heights and its chief clerical officer comply with Minnesota Statutes,

section 645.021, subdivisions 2 and 3.

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