City of Austin local sales and use tax authorization provision

A bill for an act

relating to taxation; sales and use; authorizing a local sales and use tax in the city

of Austin.

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

Section 1.
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CITY OF AUSTIN; 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, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Austin may impose by ordinance a sales and use tax of one-half of one percent for

the purpose 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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Notwithstanding Minnesota Statutes, section

297A.99, subdivisions 2, paragraph (d), and 3, paragraph (b), the revenues derived from

the tax authorized under subdivision 1 must be used by the city of Austin to pay the costs

of collecting and administering the tax, and to finance up to $28,400,000, plus associated

bonding costs, for the following, in connection with a law enforcement center: (1) the

previous purchase of land; (2) utility, site work, and design services; and (3) construction

and maintenance.

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Subd. 3.

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Bonding authority.

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

Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The

aggregate principal amount of bonds issued under this subdivision may not exceed

$28,400,000 for the project listed in subdivision 2, plus an amount to be 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,

and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 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) 20 years

after the tax is first imposed; or (2) when the city determines that the amount received from

the tax is sufficient to pay $28,400,000 in project costs authorized under subdivision 2, 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

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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

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