Roseau; local sales tax imposition authorized.

A bill for an act

relating to taxation; local sales and use; authorizing the city of Roseau to impose

a local sales tax.

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

Section 1.
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CITY OF ROSEAU; 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 or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Roseau

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 Roseau to pay the costs of collecting and

administering the tax and paying for the following projects in the city, plus associated costs

related to the issuance of bonds used to finance all or part of the following projects:

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(1) $4,300,000 for renovation of the Roseau Memorial Arena; and

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(2) $8,200,000 for the construction of a new community and wellness center.

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Subd. 3.

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Bonding authority.

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(a) The city of Roseau 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 $12,500,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any funds 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 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, 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 Roseau and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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