Audubon; city authorized to impose local sales and use tax.

A bill for an act

relating to taxation; local sales and use; authorizing the city of Audubon 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 AUDUBON; 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 Audubon

may impose by ordinance a sales and use tax of one-half 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 authorized 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 to pay the costs of collecting and administering

the tax and to finance up to $3,000,000, plus associated bonding costs, for the Fire Hall

Project.

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Subd. 3.

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Bonding authority.

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(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project 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 $3,000,000, 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 the 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 authorized under subdivision 1 expires at the earlier of (1) 20 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 if

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 authorized 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 Audubon and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

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