Virginia; local sales tax authorization amended.

A bill for an act

relating to taxation; local sales and use; amending the local sales tax authorization

for the city of Virginia; amending Laws 2019, First Special Session chapter 6,

article 6, section 30.

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

Section 1.

Laws 2019, First Special Session chapter 6, article 6, section 30, is amended

to read:

Sec. 30.
CITY OF VIRGINIA; LOCAL SALES AND USE TAX AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

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(a)
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Notwithstanding Minnesota Statutes,

section
297A.99, subdivision 1
, or
477A.016
, or any other law, ordinance, or city charter,

and as approved by the voters at the November 6, 2018, general election, the city of Virginia

may impose, by ordinance, a sales and use tax of up to 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.

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(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),

and if approved by the voters at a general election pursuant to Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a), the city must use the tax authorized under paragraph

(a) for the purpose specified in subdivision 2a.

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Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized

under subdivision 1 must be used by the city of Virginia to pay the costs of collecting and

administering the tax, and to finance the costs of renovation, reconstruction, expansion, and

improvements of the Miner's Memorial recreation complex and convention center. Authorized

costs include engineering and construction costs and associated bond issuance costs.

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Subd. 2a.

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Use of revenues; additional uses authorized.

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Notwithstanding Minnesota

Statutes, section 297A.99, subdivision 2, paragraph (d), in addition to the uses authorized

under subdivision 2, the revenues derived from the tax authorized under subdivision 1 must

be used by the city of Virginia to pay the costs of the following projects related to the

conversion of the city's steam system, plus associated bonding costs:

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(1) reconstruction and improvement of public streets, roads, sidewalks, and rights-of-way

impacted by the steam system;

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(2) replacement, repair, relocation, or abandonment of underground infrastructure

impacted by the steam system, including water, sewer, and stormwater systems;

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(3) assessment and remediation of contaminated soils, hazardous materials, and related

environmental conditions associated with the steam system;

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(4) removal or rehabilitation of obsolete or deteriorated steam infrastructure and

associated facilities; and

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(5) costs of design, engineering, environmental review, and construction related to the

projects in this subdivision.

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Subd. 3.

Bonding authority.

(a) The city of Virginia may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the
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project
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projects
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authorized

in
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subdivision
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subdivisions
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2
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and 2a
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. The aggregate principal amount of bonds issued under

this subdivision may not exceed $30,000,000, plus an amount applied to the payment of

costs of issuing the bonds. The bonds may be paid from or secured by any funds available

to the city of Virginia, 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
.

(b) The bonds are not subject to any provisions of the home rule charter of the city of

Virginia and 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.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the

earlier of: (1)
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20 years after the tax is first imposed
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December 31, 2055
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; or (2) when the

city council determines that the city has received $30,000,000 from this tax to fund the

projects listed in
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subdivision
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subdivisions
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2
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and 2a
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plus an amount sufficient to pay costs,

including interest costs, related to the issuance of the bonds authorized in subdivision 3.

Any funds remaining after payment of the allowed costs due to timing of the termination

under section
297A.99
shall be placed in the city's general fund. 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 Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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