City of St. Paul local sales tax extension provision

A bill for an act

relating to taxation; sales and use; extending the city of St. Paul local sales tax;

amending Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended.

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

Section 1.

Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by

Laws 1998, chapter 389, article 8, section 32, Laws 2013, chapter 143, article 8, section 45,

and Laws 2023, chapter 64, article 10, section 5, is amended to read:

Subd. 5.

Expiration of taxing authority.

(a) The authority granted by subdivision 1 to

the city to impose a sales tax shall expire on December 31,
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2042
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2060
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, or at an earlier time

as the city shall, by ordinance, determine. Any funds remaining after completion of projects

approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or

other obligations may be placed in the general fund of the city.

(b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the

tax is first imposed, or (2) when the city council determines that the amount of revenues

received from the tax is sufficient to pay for the project costs authorized under subdivision

2b for projects approved by the 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 the bonds under subdivision 3a, 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
, shall be placed in the general

fund of the city. The tax imposed under subdivision 1a 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 St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

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