St. Cloud; local sales and use tax authorized.

A bill for an act

relating to taxation; authorizing the city of St. Cloud to impose a local sales and

use tax.

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

Section 1.
new text begin
CITY OF ST. CLOUD; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

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 St. Cloud

may impose by ordinance a sales and use tax of one-quarter 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.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

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:

new text end

new text begin

(1) to finance up to $7,000,000, plus associated bonding costs, for an outdoor water park

adjacent to the St. Cloud Aquatics Center; or

new text end

new text begin

(2) to otherwise fund up to $7,000,000 for an outdoor water park adjacent to the St.

Cloud Aquatics Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority; voter approval.

new text end

new text begin

(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. The aggregate principal amount of bonds issued under this

subdivision may not exceed $7,000,000, 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.

new text end

new text begin

(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.

new text end

new text begin

(c) Voter approval as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), applies regardless of whether the city issues bonds under paragraph (a) or

otherwise funds the project authorized in subdivision 2.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) three

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, if applicable, 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.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

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

city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end